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I am a dealer/gunsmith and have definitely been the subject of an attempted "set up" at one time, and sidestepped another possible set up.
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There have been several 'stings' (i.e. entrapment) of firearms dealers here in MI, but to the best of my knowledge, it was the state conducting the 'stings' and not BATFs.....although I'm sure that is was done with their blessing. However, where this differs is that the staw purchases were made aware to the potential sellers at the time of the sale, so I don't feel too bad if they were caught breaking the law (there was no "go ahead....we'll catch 'em later" clause from the govt.). Unfortunately, I think this has more to do with fines and increasing revenue than it does with jailing lawbreakers and stopping illegal gun sales to gangs, the mafia, terrorists, ect. There have been several similar stings re: cigarette sales to minors; they get police cadets who are not of age to try and buy tobacco products and when they are sold, the seller is fined and his name appears in the local paper.....but none of the business' are shut down and none of the owners get jail time. To me, it's basically just a "pay to play" operation.....
Now, if congress would just entrap it's own members and leave the rest of us law abiding citizens alone, maybe we wouldn't have so much to worry about? Just a thought.