A firearms dealer from Canfield accused of taking part in a scheme to illegally sell 60 high-powered, military-grade, 50 caliber rifles to buyers in Mexico is expected to change his "not guilty" plea entered earlier in the case.

According to federal court documents, Paul A. Groves is scheduled to appear in U.S. District Court on March 13 for a change of plea hearing.

A federal grand jury indicted Groves nearly three years ago on one count of conspiracy to defraud the United States, which is punishable by up to five years in prison, and one count of receipt or possession of an unregistered firearm, which carries a potential maximum sentence of 10 years in prison.

Court records show that Groves has reached a plea agreement on the firearm registration violation.

Terms of that plea agreement are not yet available from the court docket, which also does not disclose the status of the fraud charge.

The indictment alleges that Groves, who operated High Powered Armory in Youngstown, provided false information in the purchase of firearms in order to fraudulently purchase military-grade weapons and resell them to illegal purchasers, who then resold them to Mexican buyers.

Co-defendant Eric L. Grimes, 47, of Columbus, operated Great Machine, LLC in Hilliard, Ohio, pleaded guilty earlier to engaging in the firearms business without a license.

While High Powered Armory was a federal firearms licensee, Great Machine was not.

In January 2015, Groves submitted an application to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to license Great Machine as a secondary location for High Powered Armory.

According to the indictment, a group of six people in Indiana conspired to fraudulently acquire firearms from licensees for the purpose of transferring those firearms to illegal purchasers in Mexico.

Groves allegedly negotiated with members of the Indiana group for the purchases of high-powered rifles that were then sold to buyers from Mexico who paid extremely high, marked-up prices.

For example, on January 28, 2015, Grimes accepted more than $48,000 in cash at Great Machine at the instruction of Groves and on his behalf as payment for the anticipated purchase of rifles. Groves then transferred the weapons to members of the Indiana group at High Powered Armory a few weeks later. The Indiana individuals then drove to McAllen, Texas, and re-sold them to buyers from Mexico.

Gun Envy, LLC on Indianola Avenue in Columbus, was also used as a meeting location on at least one occasion.

The Youngstown purchases included Barrett M82 .50 caliber rifles and Gun Envy Mk46 .223 caliber belt-fed semiautomatic rifles, according to the indictment.

The indictment does not identify who received the guns in Mexico, or how the weapons were put to use.

The government's General Accountability Office reported to Congress in 1999 that .50 caliber semiautomatic rifles have been used in domestic and international criminal activity, including terrorist groups, outlaw motorcycle gangs, international drug cartels, domestic drug dealers, religious cults, militia groups, potential assassins, and violent criminals.

The High Powered Armory made Youngstown headlines in 2012 when thieves broke in and stole 36 assault rifles and handguns.

In September 2018, agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives searched Grove's Canfield home at 5638 South Raccoon Road.

The indictment includes a provision stating that if he is convicted, Groves would have to forfeit any firearms confiscated during the investigation.