Dude, I just checked. That serial number is in a small batch that were condemned by the Govt. Must have been how he got hold of it. Anyway, box it up and I will have Fedex come by to pick it up for you so you don't have to worry about disposing of it.

Seriously, the carbine is valuable not only of its serial, condition and configuration, it is also has added value because you know where its been and can (still) get documentation of that. I strongly suggest that you get your friend to give you a short written, signed (notarized) statement of everything he knows, to include where his father served, any stories his father told him and how his father claims to have gotten it back. While that seems small now, but in 50 years (when your kids and grandkids are handling it) the semi-documented history will mean something.

You have a keeper, even if it does shot or function.
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