Ok, if I understand what happened with CavArms it goes something like this:
They were injection molding AR receivers off-site at another business and adding a serial number tag on-site in clear violation of Federal Law. Supposedly they were the only business in history that got an 'OK' from the BATF to manufacture off-site but the document that proved this has never been made public. They got caught and their illegally-produced receivers were confiscated. By some stroke-of-luck (or deal that was not made public) they were not charged and the receivers were destroyed. What exactly is the problem and why would the NRA have gotten involved? The NRA makes a habit of *not* helping people and/or businesses that commit Federal crimes and I, for one, am glad that my money isn't spent helping these criminals.
From what I've read on the Web the Feds had a slam-dunk case against them and the owner could easily be doing many years for illegally manufacturing firearms. My guess is that we'll never hear what 'really happened' because that would be a violation of a deal that was struck. He was allowed to keep his license and continue manufacturing legally, on-site. I think there's only one way that could have happened: Deal.
When you go into business as a firearms manufacturer you accept that you have to follow every requirement to the letter or you will go down. If you screw up ALL of your assets can be seized and your personal freedom lost. This is a risk that all firearms manufacturers knowingly take and most are smart enough to operate FAR from any gray areas.
They broke the law and (in my opinion) paid a very small price for it.
I know that just about everyone here hates the BATFE on principle but it sounds to me like they got it right in this case. CavArms was not manufacturing off-site for some malicious purpose, they couldn't afford their own injection molding equipment. The Feds took all the guns that were on site, searched their computers and records to see if they were hiding anything serious, and let them continue production legally on-site after giving them back all but the illegal guns and parts.
What's the problem again?