Is it really that simple? He had an FFL license but surrendered his NY Dealer license? Why on earth would he continue to sell firearms if he didn't have his NY license? If that was the case, how could he NOT expect to get shut down and go to jail for it?
Why were they checking the serial numbers of the lowers he sold to everyone? I can't help but wonder if there is more to this that we just don't know.
NYS Dealer's license is for NYS definition of "Firearms" (Handguns, LCAFD, etc), not sure of particulars