Bank Holdup Probe Focuses on Guns

Federal agents tracing the guns that ended up in the hands of two men who staged a violent holdup at a North Hollywood bank said the weapons initially were purchased legally and most passed through several owners before being used in the botched holdup.

But most of the guns were illegally modified to automatic weapons, and agents of the Bureau of Alcohol, Tobacco and Firearms are focusing their efforts on who may have done the work. The robbers’ superior gunfire on that terrifying Feb. 28 morning initially overpowered police, agents said Wednesday in an exclusive interview.

The pair’s arsenal--including 20 other guns recovered in the days after the shootout--ranged from high-quality Chinese assault weapons to common handguns similar to those carried by law enforcement officers. All were manufactured out of state. None were reported stolen. All had serial numbers intact. And all, in fact, were initially purchased legally.

The case illustrates how it is possible to circumvent laws established to track gun ownership and how legally purchased guns can be illegally converted and fall into the hands of unauthorized owners.

Most of the weapons passed through at least half a dozen owners before reaching Emil Matasareanu and Larry Eugene Phillips Jr., who were fatally shot after the attempted bank robbery, said John A. Torres, assistant special agent in charge of the Los Angeles field division.

Now that an exhaustive criminal trace of the guns’ owners is nearly complete, ATF agents are turning their attention to the conversion of these once-legal weapons.

“The $64,000 question now is to find who illegally converted these weapons” to fully automatic anti-personnel machine guns, Torres said. “ATF is trying to determine if anyone else assisted the North Hollywood bank robbers in the conversion of some of these semiautomatic firearms to full automatic.

“As of right now,” Torres said, “it does not appear that they had the technical know-how to do it themselves.”

The Los Angeles Police Department, however, believes the pair could have converted the powerful weapons themselves. The information is considered a key element in determining whether the men acted alone or had accomplices. So far, police have said the pair staged the robbery without outside help, and committed as many as five other bank holdups.

Federal investigators, meanwhile, believe the men may have had help converting at least some of their weapons. ATF agents said they have solid leads, but refused to reveal details of their investigation.

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Automatic firearms, which are illegal in the United States, continue to shoot bullets as long as the trigger is pulled. A semiautomatic weapon fires a single shot each time the trigger is pulled.

ATF agents, acting on the advice of the LAPD’s Robbery / Homicide Division, have refused to reveal specifics of what they know about the chain of ownership of the guns.

But agents concluded that the robbers selected for their North Hollywood robbery arsenal six of the most powerful weapons they owned. They had 20 other weapons to choose from, all of which were recovered during subsequent searches of properties linked to Matasareanu and Phillips.

“The only thing I am certain of is that the two were prepared for an armed confrontation,” Torres said.

A high-ranking LAPD official who remains close to the investigation said: “They had a good choice of armament. Very fast-firing. Very effective.”

The fierce gun battle, played out in the neighborhood surrounding the Laurel Canyon Boulevard bank branch, left 11 officers and six civilians injured. The firefight led to renewed calls for more powerful weapons for police, who were initially overwhelmed by the robbers’ firepower.

Although the ATF said all the weapons were first purchased legally, some are banned for sale in California, suggesting that some of the guns were purchased out of state.

Matasareanu and Phillips were armed with three Chinese-made Norinco 56S assault rifles and a .308-caliber H & K (Heckler and Koch GmbH) 91 rifle, for example, neither of which can be sold legally in California, even by legitimate gun dealers. They also had a .223-caliber Bushmaster rifle and a Beretta 92 FS 9-millimeter semiautomatic handgun.

When sold legally, the Beretta goes for about $400 to $500 and the Bushmaster for $700, according to the ATF, which oversees U.S. gun regulations.

After the rifles have been converted to fully automatic weapons, they can sell for much more on the street, agents say. For example, the Norinco, H & K and Bushmaster rifles could sell for $2,500 to $3,000 when converted to automatic fire.

In all, police recovered 26 guns belonging to the men. Of those, six guns similar to the ones used in the North Hollywood robbery were seized last week at an Anaheim Hills home where Phillips once lived with his wife. Eight more were found during previous searches of Rowland Heights and Altadena properties in the days after the robbery.

The searches also turned up armor-piercing ammunition. In Anaheim Hills, for example, police found several 100-round magazines loaded with armor-piercing bullets. The specialty ammunition helped the robbers shoot out the inch-thick plastic barriers at the bank, providing access to the bank vault.

Without divulging the history of the weapons, ATF agents described the procedure they followed to trace the guns’ ownership. First, agents identified the weapon make, model and serial number. Those numbers were checked with the National Crime Information Center to determine whether they were reported stolen.

The agents followed the trail of the guns from domestic manufacturers or import companies to wholesalers and retailers.

They located the guns’ first retail buyers through records kept by licensed gun dealers.

From there, the agents’ job became difficult. Most of the guns were sold from one owner to another, many without any records kept. In California, but not in all states, gun sellers and buyers are required to record sales transactions with licensed gun dealers.

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At some point, the rifles were converted to fully automatic weapons, possibly by a gunsmith or machinist with access to specialized tools, agents said.

While ATF officials say they continue to aggressively pursue anyone who might have assisted in converting the weapons, LAPD officials said investigators in at least two searches have uncovered firearm manuals and rifle parts that Matasareanu and Phillips could have used to convert the guns themselves.

“They sure knew how to use them and reload them,” said one LAPD official. “They didn’t seem to have any problems using them.”

But ATF agents said some expertise is needed to alter the guns. The weapons used in the bank robbery performed well--never appearing to jam--suggesting to investigators that the work was done by a well-trained gunsmith.

“We’re still pursuing all firearm leads vigorously,” Torres said, adding that the agency will continue investigating “until all information gaps are filled.”