I would ask him for the address of the FFL in NY he wants it transferred to in NY. Tell him that the guy legally belongs to you wife because he abandoned (reference your discussion with law enforcement) it so it has to be transferred legally. Since it sounds like it no FFL in NY is going to take it, he'll should discover this. Offer to sell it now for him or send it to him at his next duty station assuming it might be legal there. If that doesn't end the drama over this, have your wife call his commanding officer. Most commanders take a dim view of this kind of immature nonsense.