It is possible but a short barrel is all you can add to it. No "evil" features can be added as defined by the '94 ban.

Don't forget that an SBR is an NFA weapon and you must complete a Form 1, send it to ATF and get approval before you build it.  

I have an interesting problem that I would like to get a second opinion on. I am a Class III Dealer; I requested Olympic arms to make me some type of SBR, that would be a "keeper"; Something I could keep, if I surrendered my Class III status. They said they would check what they could do and get back to me. About 2 months later, I received a SBR they made up (Hell, I didn't even know it was coming). Here's the clincher! When I opened it up, I have a CAR, with a Vortex type flash suppressor, not pinned-not welded; The CAR Stock is fully functional; Removable 30rnd mag, 6.5"bbl. This came with NO restrictions on my form 3; This is not designated as a "Dealer Sample". What should I do? I would like to keep the gun, but if I surrender my Class III License, I better hope I never get caught with this thing I guess! Oh yeah, forgot to mention it came with LEO Mag! I think I should call ATF and get a direct definition, but I do not want to bring any un-necessary misery to Oly/Arms. What is your opinion on this?

This sounds like a hypo on a bar exam.  I'll assume you are legit and take this one problem at a time.

If Oly "made" you an SBR, they would have filled out the Form 1 and awaited the stamp.  That takes at least 90 days.  The Form 3, as you know, takes about 30 days.  That's 4 months worth of ATF waiting.  You said you recieved it in 2 months- does not add up UNLESS they did not make you squat and just transfered an already registered NFA SBR.  Advice:  request all of the Form 1 paperwork ASAP

Pre-ban features?  The Form 1 will ID the lower and you should be able to discern whether the weapon is pre or post-ban for evil feature purposes.

LEO mag- c'mon, you know the answer to that one.  Unless you have a demo letter or you are in law enforcement, that was a no-no.

Keeper?  Why don't you build your own?  Just choose a lower (if you want pre-ban features, use a pre-ban lower) and fill out the Form 1 yourself.

Good luck.

I had submitted my Class III Dealer paperwork in advance to Oly/Arms. I'm telling you the facts...I asked them to get back to me, with what type of "keeper" weapon, they could make for me. They said they would call back and the next thing I knew I had this gun at my door! I received my copies from ATF, so stating I was NOW the legal owner of this SBR; NO RESTRICTIONS WHAT SO EVER! I do not believe the configurations of this weapon is legal to own as a "keeper", when I retire my Class III; I'm trying NOT to stir up a hornets nest for anybody, but technically I believe this SBR would fall under LEO configurations only. I even spoke to Todd at Special Weapons and He said Oly/Arms totally screwed up on this one.

Maybe I'm missing something here, but it doesn't look like a huge problem to me.

The gun transfered on a F3, correct?  So there's no beef with regard to the transfer of an NFA weapon.  So you got a LEO mag and a post-ban assault weapon SBR(with the nasty features). As a dealer you're entitled to possess them (27 CFR 178.40, 178.40a).  If you relinquish your FFL/SOT, get rid of the LEO mag, cut the bayo lug (if there is one), get a fixed stock, and weld a muzzle brake on it.  Of course, if you don't want to go through that hassle, you could simply send it back to Oly on a F5 and have them put a fixed stock on it, and a short 922(v) compliant upper.  I'm sure if you explain the problem, they'll make it right.

I agree.  You told them to "make" you a "keeper".  Make means they would have started from scratch with a Form 1.  Again, timeline says otherwise.  "Keeper" means the config would conform with the ban (or be pre-ban) and NOT include LE only features.

I contacted ATF today; Of course they said NO-NO! Definitley NOT a legal "keeper" for private individuals (whicj I will be, after I surender my Class III Status). What the other gentleman noted was true also. I COULD own this weapon, as long as it had been purchased with a LETTERHEAD stating my intentions of using this as a "sample" weapon. That where another glitch would fall; NO PD/Letter was originally sent! After finishing with ATF, I was on the horn with OLY/Arms; I told them I wanted a new upper w/6.5" barrel, in Post Ban configuration; Plain end or with Smith Muzzle break. I also told them I wanted a "non-collapsible" stock configuration for the SBR they made me. I informed them I needed this quick!!! After I removed the illegal parts, I would send them back. They agreed, but still felt they were correct in making the gun the way they did! Unbelievable!

Hi Duke, Guys I have to say this guy is for real he has transfered 5 guns for me in the past 6 months. Duke I am the guy Erik sent your way and you just did the Calico for me. He was asking me about this a while ago so I know he is asking a legit question.
SCAR