Michael Damon Rodriguez was indicted Friday in San Antonio, the San Antonio Express-News reported.
The charges, made public Monday, accuse Rodriguez of selling guns without a license and acquiring a gun he later gave to his father, Manuel "Manny" Rodriguez.
The elder Rodriguez later sold the weapon, a Century Arms AK-47 variant, at a gun show, officials allege.
An agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives testified at a hearing for Manny Rodriguez the gun was seized in Mexico in July from members of the Zetas cartel.
Federal agents said they found a "small arsenal" when they raided the Rodriguez home in September. Manny Rodriguez was charged at the time with being a felon in possession of a firearm.
He served almost four years in prison for selling guns without a license in California, authorities said.
The September raid also found more than 10,000 rounds of ammunition, 76 guns and $15,000 in cash, authorities dais.
Federal officials say they have no evidence either Rodriquez knew their guns would end up in the hands of Mexican cartels.
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