The Obama administration’s “Operation Choke Point” has come under intense criticism from gun stores claiming the regulatory program is a devious, back-door way to try to damage or destroy their businesses. As reported in a May issue of the Washington Times:
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.
In other words, say critics, the administration is targeting businesses and industries it doesn’t approve of, using bureaucratic policies and programs to try to shut them down.
Now, a firearms manufacturer in Oregon is charging that Operation Choke Point is behind an effort to do it harm by blocking credit card transactions handled by a company it has worked with for a long time.
Calico Light Weapons Systems believes it is the latest victim of the administration’s overreach. …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.”
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.
The good news for Calico is that another credit card processor — one that apparently is willing to stand up to the Obama administration — is taking on the gun maker’s business.
Calico has managed to recover from the setback by partnering with what Holmgren says is a “pro-Second Amendment” credit card servicer — McMillan Merchant Solutions, which is based in Arizona. Holmgren told TheBlaze he is already using McMillan to process transactions again — he says the difference between Intuit and McMillan is simply that McMillan has decided that it won’t be cowed by the government’s strong-arm tactics.
According to Calico’s website, the company manufactures quite a few high-capacity weapons:
Calico…is currently in full production mode building its revolutionary and proprietary “Legacy Design” high-capacity, helical-feed 9mm and .22 cal. select-fire submachine guns and semi-auto-only carbines, SBRs (Short-Barreled Rifles) and pistols. The helical-feed magazine feature makes these Calico weapons unique, and unlike any other U.S.-made firearms.
Given the administration’s consistent efforts to restrict gun rights and firearms availability, one might understand why Calico Light Weapons Systems is apparently being targeted.
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Photo Credit: Calico Light Weapons Systems H/T: theblaze.com