Tag Archive: Operation Choke Point


Audio Tapes Reveal How Federal Regulators Shut Down Gun Store Owner’s Bank Accounts

 

 

 

 

” Conversations recorded by a Wisconsin gun store owner provide perhaps the clearest glimpse yet into how the federal government uses regulators to target legal firearm and ammunition sellers.

“ Our hands are tied by it,” a regional manager with Heritage Credit Union told Hawkins Guns owner Mike Schuetz of federal regulations which forced the institution to close Shuetz’s bank accounts in November.

  Recordings of Shuetz’s conversations with the manager and a bank teller, which were published online by the U.S. Consumer Coalition, make it clear that the National Credit Union Administration (NCUA) examined the credit union’s books and forced it to close Shuetz’s account — a move he blames on a Department of Justice initiative called Operation Choke Point.”

 

 

 

 

 

 

” Schuetz’s saga began on Nov. 13, when he says Heritage Credit Union informed him that it would have to close his bank accounts.

“ I received a call from Heritage Credit Union in Hawkins, where I set up my business account for Hawkins Guns. They told me I had to close the account because they do not service companies that deal in guns,” wrote Shuetz on Facebook at the time.”

 

 

    Below is a screen shot from the House Committee on Oversight and Government Reform’s report from December 8, 2014 , “Federal Deposit Insurance Corporation’s Involvement in “Operation Choke Point” detailing some of the legal businesses Obama’s Federal regulators have determined are not suitable for the American public to be exposed to . Warning: PDF

 

 

Operation Choke Point %22High Risk%22 Businesses

 

 

 

Daily Caller

 

 

 

 

 

 

 

 

 

 

Daily Video 12.27.14

John Stossel – Operation Choke Point

 

 

 

Published on Dec 24, 2014

” Kat O’Connor (owner, Tomkat Ammunition) and Brian Wise (U.S. Consumer Coalition) discuss government’s new restrictive banking policies designed to further restrict freedom and commerce.http://www.LibertyPen.com “

 

 

 

 

 

 

 

 

 

For Gun Shop Owners, It’s No Longer Hip To Be ‘Square’

 

 

 

 

” It’s white. It’s square. And at 1-by-1 inch in diameter, it is the perfect accoutrement to any entrepreneur’s smartphone.

  With its quick swipe capability and ultimate portability, the high-tech Square Reader credit-card processor has become an invaluable tool in today’s economy.

How high-tech credit card vendors and customers get their Second Amendment rights infringed.

Taxi drivers use it—as do trade-show vendors, online retailers and home contractors.

  It is, as the company’s slogan says, a “small credit card reader” that offers “big possibilities.” But some of those big possibilities are apparently being foreclosed by the Obama administration.

  Last summer, around the same time the U.S. Department of Justice’s Operation Choke Point began pressuring banks to drop customers who buy or sell firearms, tobacco and other goods considered “not acceptable” by the Obama administration, Square quietly changed its terms of agreement.

In an alert regarding a change of terms, Square notified vendors:

you will not accept payments in connection with the following businesses or business activities: …sales of (i) firearms, firearm parts or hardware, and ammunition; or (ii) weapons and other devices designed to cause physical injury. “

 

Story continues

 

 

 

 

 

 

 

 

 

 

 

‘High Risk’ Label From Feds Puts Gun Sellers In Banks’ Crosshairs, Hurts Business

 

 

Gun Sellers %22High Risk%22

 

 

 

” Gun retailers say the Obama administration is trying to put them out of business with regulations and investigations that bypass Congress and choke off their lines of credit, freeze their assets and prohibit online sales.

  Since 2011, regulators have increased scrutiny on banks’ customers. The Federal Deposit Insurance Corp. in 2011 urged banks to better manage the risks of their merchant customers who employ payment processors, such as PayPal, for credit card transactions. The FDIC listed gun retailers as “high risk” along with porn stores and drug paraphernalia shops.

  Meanwhile, the Justice Department has launched Operation Choke Point, a credit card fraud probe focusing on banks and payment processors. The threat of enforcement has prompted some banks to cut ties with online gun retailers, even if those companies have valid licenses and good credit histories.

“ This administration has very clearly told the banking industry which customers they feel represent ‘reputational risk’ to do business with,” said Peter Weinstock, a lawyer at Hunton & Williams LLP. “So financial institutions are reacting to this extraordinary enforcement arsenal by being ultra-conservative in who they do business with: Any companies that engage in any margin of risk as defined by this administration are being dropped.” “

 

Washington Times

 

 

 

 

 

 

 

 

 

 

‘Operation Choke Point’: Way Out Of Control

 

 

 

 

Operation Choke Point

 

 

” The Justice Department’s “Operation Choke Point” is said to be targeted at online payday lenders that lend into states that prohibit payday lending. But the operation is being pushed far beyond its stated objective of targeting online payday lenders violating state laws and is having potentially devastating impact on lawful check cashing and small loan businesses. This in turn will cut off tens of millions of people from much needed access to money to meet emergency needs.

  According to the Washington Post (“Banks to payday lenders: Quit the business or we’ll close your account,” Danielle A. Douglas, April 11, 2014), one large bank informed a small financial firm in Minneapolis to get out of the payday lending business within 30 days or the bank would discontinue providing banking services to the firm.

  Another much larger diversified financial firm — let’s call it “FinCo” to protect the innocent — received the following letter from another large bank earlier this month:

  Providing quality service to our clients has been one of the keys to our success at [Gotham Bank]. Toward that end, we are committed to understanding, and satisfying, the needs of our clients. Unfortunately, difficult decisions are sometimes necessary in order to accomplish these important goals. Gotham Bank has made the decision to exit the business of providing commercial banking services to check cashers and related businesses. …

  Based on the foregoing, please be advised that we are exercising our right … to terminate your account relationship, effective July 30, 2014.

  Please make arrangements to close the accounts listed on the attached schedule, and have any direct deposits and/or automatic debits re-directed, by the Termination Date. …

  Also, in conjunction with the above, we are hereby notifying you [that the Treasury Master Service Agreement between your company and Gotham Bank] shall be terminated as of the Termination Date.

  The Gotham Bank officer signing the letter added a personal handwritten note to the chief executive officer of FinCo: “[John] — I am so sorry that we have made this change. I have always enjoyed working with all the folks at FinCo. …”

  No matter what your personal view may be of payday lending or check cashing services, Operation Choke Point should be both alarming and repugnant. It is a direct assault on the democratic system and free-market economy that have made the United States the most powerful and prosperous nation in world history.”

 

 

    In case you needed more anymore evidence of the Statist proclivities of the Obama Justice Dept , we now have them pressuring banks to refuse to do business with legal , but “undesirable” by the government’s standards , entities via official policies called Operation Choke Point .

   The targeted businesses include check cashing , ammunition sales , the adult film industry , dating services , on-line gambling and drug paraphernalia sales and while the reader may personally find some of these services objectionable , the fact remains that they are legal and as such should be afforded the same rights as any other business . To do otherwise sets a very dangerous precedent .

 

 

 

” No matter what your personal view may be of payday lending or check cashing services, Operation Choke Point should be both alarming and repugnant. It is a direct assault on the democratic system and free-market economy that have made the United States the most powerful and prosperous nation in world history.

  Without color of law and based on a political agenda, unelected bureaucrats at the Department of Justice are coordinating with some bank regulators to deny essential banking services to companies engaged in lawful business activities. Bankers operating under the yoke of an oppressive regulatory regime are being cowed into compliance.

  If lawful payday lenders and check cashers can be driven out of the banking system because someone in the government doesn’t like them or what they do, what lawful businesses are next?”

 

 

 

    Read on and pray your industry doesn’t fall out of favor with the State or you may find yourself joining the millions of others forced into the unemployment lines and into a life of government dependency . Cloward-Piven anyone ?