Documents Reveal Extent of Operation Chokepoint Probes

Wall Street Journal
Thursday, May 29, 2014

As part of Operation Chokepoint, U.S. officials have opened at least 15 civil and criminal investigations against banks and other payment-processing firms, according to newly released Justice Department documents. Operation Chokepoint, a Justice Department investigation into whether payment-processers helped enable fraudulent activity, has been criticized for punishing good actors along with the bad. Republicans say the government has pressured banks to stop handling payments for merchants deemed as high risk, including gun dealers, short-term lenders and credit-repair programs. Emily Pierce, a Justice Department spokeswoman, said banks are breaking U.S. law if they knowingly process illegal transactions or are "willfully ignorant" of fraud.