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Aggree with most of what you're posting here but not the red text. BATF can and certainly has fabricated "evidence" to get someone they really wanted to take down. Once they have your gun they can do whatever they like and simply say it was confiscated in that condition. It's kind of like what Stalin said: "I don't care how the people vote, all that matters is who counts the votes"..
Less than a year ago the ATF busted a guy at the gun show. Turned out that over the preceding year he had legally aquired almost 350 guns. An FFL was used in every aquisition. This guy rented a couple of tables at the gun show and was legally selling a pert of his well-documented collection. ATF charged him with unlicensed business activity as he was selling a large amount of guns without an FFL. He did win his case, however he broke no laws, and yet he paid a small fortune to his attorney and never did get that kiss from the ATF.