Last week, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI raided the home of 39-year-old Paul Holdy, a University City, California resident.

According to federal agents, Holdy was dealing heroin and illegally selling firearms out of his University City home.

Holdy has a prior criminal conviction, making him ineligible to legally possess a firearm or ammo. He also failed to hold a federal firearms license (FFL), which is required to legally sell and transfer firearms.

ATF agents went undercover and successfully purchased 19 guns from Holdy. Court documents indicate Holdy sold agents short-barrel machine guns, assault rifles and handguns.

According to agents, Holdy bragged about shipping drugs to Alaska, having access to methamphetamines and potentially making and selling the date-rape drug known as GHB.

From FOX 5 in San Diego:

After serving a search warrant at Holdy’s residence, agents seized a machine gun and two gallons of a substance suspected of being GHB, a depressant used as a recreational intoxicant and date-rape drug.

The feds also came across homemade gun-making equipment, which he manufactured at a nearby do-it-yourself workshop.

Neighbors were shocked to learn about the incident.

“It’s hard to believe that this goes on in our quiet little community here. It’s scary,” neighbor Chris Yusunas told NBC 7.

Holdy is facing the maximum penalty under each count, which could land him in prison for 30 years and a hefty fine of $1.25 million.

“Illegally manufacturing and brokering the sale of guns and drugs on the streets of San Diego poses a tremendous danger to our community,” acting U.S. Attorney Alana Robinson told FOX 5. “Prosecuting firearms offenses is a top priority for the U.S. Attorney’s Office, and we will continue our efforts to disrupt the availability of illegal guns in our city.”

According to prosecutors, this case is the result of the Organized Crime Drug Enforcement Task Force, which “seeks to identify, dismantle and prosecute high-level members of organizations that engage in money laundering and weapon and drug trafficking.” The task force is made up of local, state and federal law enforcement agents.

Watch NBC 7‘s coverage of the story.