Gracious I hate to hear these type of stories. Hate to say it, but when I buy SMG's now, from anyone but a retail dealer, I insist that the SMG be taken to a local storefront FFL (Gun shop) and they physically hold it until the ATF approval. Once they have the gun, I do a wire transfer.
Listen my friends, all is well until it isn't. We know each other, but things happen and in this case, it's $31K out the door.