The TBO article partially answers one of my questions, "Operation Castaway began after the ATF's National Tracing Center Multiple Sales Database revealed that Crumpler purchased 529 handguns in 62 transactions from federally licensed firearms dealers in Florida." I just never imagined anyone trying to skirt the FFL laws would create a record of sales by buying multiple handguns per day. But, it appears Mr. Crumpler was double stupid.
The TBO article does appear to contradict itself when it talks about Crumpler shipping the guns overseas but then says, "In several instances where Crumpler did sell guns to individuals from Honduras, including those who were not in the country legally, agents intercepted the individuals and seized the weapons, according to the documents." It appears to be some sloppy writing.