No, he was not. Did you even read the link you provided? What you are claiming isn't even a law, LOL.
He was found guilty, according to your wiki source, of transferring a machinegun. It wasn't simply that it was a malfunctioning gun, but one that he knew was malfunctioning, one that he knew had a problem in the 3-round burst position.
Admittedly, I summarized the issue. But the key issue is that knowingly possessing a broken or otherwise unregistered machine gun (as defined) is a serious crime. And it isn't as clean cut as you say... his defense was many-fold, but along the lines that the gun malfunctioned and he didn't "smith" it that way.
It was show, basically, that he knew it was full auto and yes transfered it.
Getting back to the OP, the reason I posted a brief statement and link is that this is serious business. Fix it or destroy it. If it's held on to and, heaven forbid transerred to a buddy at the range, he could be Olofson part 2. Not something to toy around with - even if you are charged and win, you're talking about 2 years and tens of thousands of dollars later...