Fearless Distributing opened last year on an out-of-the-way street in Milwaukee, offering designer clothes, athletic shoes, jewelry, and drug paraphernalia. Those working behind the counter weren't interested in selling anything. They were undercover agents from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives running a storefront sting aimed at busting criminal operations by purchasing drugs and guns from felons, says the Milwaukee Journal Sentinel.

The effort has not snared any major dealers or taken down a gang. Instead, it resulted in a string of mistakes and failures, including an ATF military-style machine gun landing on the streets of Milwaukee and the agency having $35,000 in merchandise stolen from its store. When the 10-month operation was shut down after the burglary, agents and Milwaukee police officers who participated in the sting cleared out the store but left behind a sensitive document that listed names, vehicles, and phone numbers of undercover agents. The agency remains in a battle with the building's owner, who says he is owed about $15,000 because of utility bills, holes in the walls, broken doors, and damage from an overflowing toilet.