Economics

U.S. Investigates Florida ‘Kalashnikov’ Factory With Ties to Putin Allies

  • Subpoena seeks records on state, local tax-break application
  • Executives say previous ties to Russian firm have been cut

Activists protest in front of Kalashnikov USA, a gun manufacturer that makes an AK-47 rifle, in Pompano Beach, Florida on Feb. 25. 

Photographer: Joe Raedle/Getty Images
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U.S. prosecutors have opened a criminal investigation into a Florida factory that makes shotguns modeled after the iconic AK-47 assault rifle and is run by executives with ties to top allies of Russian President Vladimir Putin.

The U.S. attorney’s office in Miami is seeking records related to Kalashnikov USA’s 2015 request for state and local tax breaks, according to a grand jury subpoena sent to the city of Pompano Beach, Florida this week. Federal prosecutors are investigating the business practices of RWC Group LLC, which owns Kalashnikov USA’s plant in Pompano Beach, a person familiar with the investigation said.