When the govt specifies that a coffee maker survive an EMT burst and must qualify for 14 different QAQC standards, it adds a bit to the price. At least, I have heard that is what has led to some of the past big prices.
On this one, since you can goggle standard suppressor pricing, I find it hard to believe it was a scam. Assuming he actually did sell to a military outfit. Sounds like there is more not being said.