Sorry to hear of your bad luck. I've had great luck with AuctionArms, including finding a real deal on a .40 Browning HiPower.

I wouldn't be surprised if the reason the ATF didn't care is that they were the seller, trying to sting someone. That isn't unheard of. They have been known to do that with drop in full auto kits for AR15s.
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It's not that life is so short, it's that you're dead for so long.