Firearms Owners Against Crime
Institute for Legal, Legislative and Educational Action
Institute for Legal, Legislative and Educational Action
A Oregon-based gun maker said Thursday that it has been blocked from processing credit card transactions by its long-standing credit card company, and believes it is the latest victim of the Obama administration's "Operation Choke Point."
The Obama administration has said Choke Point lets the Departments of Justice and Treasury crack down on illegal businesses by blocking their access to banks and other parts of the U.S. financial system.
But critics of the program have said the administration is using it to crack down on businesses it doesn't approve of, under the guise of trying to stop illegal activities, even when they have done nothing illegal.
Calico Light Weapons Systems believes it is the latest victim of the administration's overreach. In a statement released Thursday, Chris Holmgren, the company's owner, says he was unexpectedly warned in mid-July that his credit card processor would have to close his account due to "illegal activities."
Firearms producers are prohibited by law from selling guns over the Internet. But Holmgren says his company does not sell guns online, and only sells certain parts.
"The [credit card] company thought that I sold firearms over the Internet, which I do not," he said. "My company only sells parts online, like screws, washers, and other soft goods."
After several phone calls to his credit card processor, Intuit Merchant Service, Holmgren was told a "policy change" related to "illegal activities" is what was forcing Intuit to close Calico's account.
"By this point, I wondered if my company had been a target of Operation Choke Point," he said. "I had heard of the program, but never believed that my company's accounts could be at risk since we do nothing illegal."
Holmgren said that his company later indicated it would re-open his account, but said this has not happened yet.
"I am certain that this is the work of Operation Choke Point, and that my company was targeted because it is considered a 'high risk' by the Department of Justice and FDIC, even though we do nothing illegal," he said.