• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

DOJ's 'Operation Choke Point'

hypocritexposer

Well-known member
DOJ's 'Operation Choke Point' May Be Root of Porn Star Bank Account Closings

Elizabeth Nolan Brown|Apr. 28, 2014 8:40 pm



Despite being in good financial standing, adult film performers and others in the porn industry have had bank accounts abruptly terminated—and the U.S. Department of Justice (DOJ) may have had something to do with it.

Under "Operation Choke Point," the DOJ and its allies are going after legal but subjectively undesirable business ventures by pressuring banks to terminate their bank accounts or refuse their business. The very premise is clearly chilling—the DOJ is coercing private businesses in an attempt to centrally engineer the American marketplace based on it's own politically biased moral judgements. Targeted business categories so far have included payday lenders, ammunition sales, dating services, purveyors of drug paraphernalia, and online gambling sites.

"Operation Chokepoint is flooding payments companies that provide processing service to those industries with subpoenas, civil investigative demands, and other burdensome and costly legal demands," wrote Jason Oxman, CEO of the Electronic Transactions Association, at The Hill.

The theory behind this enforcement program has superficial logic: increase the legal and compliance costs of serving certain disfavored merchant categories, and payments companies will simply stop providing service to such merchants. And it’s working—payments companies across the country are cutting off service to categories of merchants that—although providing a legal service—are creating the potential for significant financial and reputational harm as law enforcement publicizes its activities.

Thus far, payday lenders have been the most frequent target. ... And if payday lenders are today’s target–what category will be next and who makes that decision?

I'm not sure who made the decision, but it seems the next big targeted category is the adult film industry. Last week, adult film actress Teagan Presley and an unknown number of others in the porn industry received notices that their Chase Bank accounts were being abruptly terminated.

"When Presley went to the bank in person to ask why, she was told it’s because she’s considered 'high risk,'" according to VICE News. VICE's Mary O'Hara was the first to note a likely link between the porn bank account closings and Operation Choke Point. The DOJ did not respond to VICE News’ request for comment.

For years, various government initiatives have been aimed at reaching the "unbanked" and "underbanked." Federal officials claim to want to help these individuals avoid high fees and other downsides of nontraditional financial services, but it's hard not to suspect these efforts have at least as much to do with wanting a record of everyone's financial goings-on. If the unbanked were such a real concern, why would federal agencies be simultaneously encouraging banks to drop more customers?

Targeting porn performers or not, Operation Choke Point represents an incredible abuse of regulatory power. In a recent American Banker op-ed, former Federal Deposit Insurance Corp. Chairman William M. Isaac called it "a direct assault on the democratic system and free-market economy."

In a March 2013 hearing before a Senate Banking subcommittee, Sen. David Vitter (R-La.) pointed out the obvious: that DOJ has "no statutory authority" to be doing this. But why bother with statutory authority when you can just secretly strong-arm highly regulated businesses into doing what you want? I've never been much of a cryptocurrency evangelist myself, but I'm beginning to come around...

http://reason.com/blog/2014/04/28/doj-operation-chokepoint-and-porn-stars
 

Mike

Well-known member

McMillan Fiberglass Stocks, McMillan Firearms Manufacturing, McMillan Group International have been collectively banking with Bank of America for 12 years. Today Mr. Ray Fox, Senior Vice President, Market Manager, Business Banking, Global Commercial Banking came to my office. He scheduled the meeting as an “account analysis” meeting in order to evaluate the two lines of credit we have with them. He spent 5 minutes talking about how McMillan has changed in the last 5 years and have become more of a firearms manufacturer than a supplier of accessories.

At this point I interrupted him and asked “Can I possible save you some time so that you don’t waste your breath? What you are going to tell me is that because we are in the firearms manufacturing business you no longer what my business.”

“That is correct” he says.

I replied “That is okay, we will move our accounts as soon as possible. We can find a 2nd Amendment friendly bank that will be glad to have our business. You won’t mind if I tell the NRA, SCI and everyone one I know that BofA is not firearms industry friendly?”

“You have to do what you must” he said.

“So you are telling me this is a politically motivated decision, is that right?”
Mr Fox confirmed that it was. At which point I told him that the meeting was over and there was nothing let for him to say.

I think it is import for all Americans who believe in and support our 2nd amendment right to keep and bear arms should know when a business does not support these rights. What you do with that knowledge is up to you. When I don’t agree with a business’ political position I can not in good conscience support them. We will soon no longer be accepting Bank of America credit cards as payment for our products.

Kelly D McMillan
Director of Operations
McMillan Group International, LLC
623-582-9635
www.mcmillanusa.com
 

Latest posts

Top