ScottDLS wrote:
It should be no problem if the friend goes and fills in the 4473. The previous transfer "sale" had nothing to do with who was paying for the auction. The first transfer is from FFL to FFL. No straw purchase by definition. Then the friend comes in a picks up the gun that OP "paid for", no problem. The auction site FFL is not responsible to tell the receiving FFL who to transfer it to. The legal transfer takes place from the inventory of one FFL to the other, even though neither of them is actually paying for the gun (other than a transfer fee).

but IANAL.
If the purchaser gives the seller the friend's name along with the FFL info, then the seller will have the gun sent to the receiving FFL with the friend's name (and usually also the friend's telephone number). Friend comes in, picks up the gun, pays the FFL fee, and passes the background check. Friend accurately answers that they are the actual purchaser on the 4473 form. Friend then reimburses the guy who paid the seller, and who acted as the bidding agent.
There is no straw purchase because there is no transfer of the gun with the intent to give it to anyone else. There are also no "red flags" to worry about.
As an aside, this could all be cleared up by changing the law so that it is only a straw purchase if you buy a gun for someone that you know cannot legally purchase a gun. It is a bit ridiculous that it is illegal to buy a gun "for" person X. But it is not illegal to buy a gun, and then sell it to person X in the parking lot as you are leaving your FFL dealer. That actually almost happened to me once. I was picking up a hard to find gun that I bought online. A guy standing at the counter told me that he had looked everywhere for that gun, and asked me where I got it. Then he asked me what I had paid. Then he offered me what I had paid +$100 for it. I said no because I really wanted that gun. But would it have been illegal for me to say yes? His offer came AFTER I had fully completed the transfer.