First, should not have bought an Olympic Arms. Second, shouldnt have loaned his gun out.. Eitherway, I think this is BS. it also shows how serious they take full auto weapons. If it was a "malfunction", let the guy go. If they can prove he modded the gun to do that...fine.
http://www.cnn.com/video/?/video/bestoftv/2008/03/13/ldt.tucker.govt.guns.cnn