US. Department of Justice

Office of Legislative Affairs

 

 

Of?ce of the Assistant Attorney General Washington, D. C. 20530

AUG 1 67917

The Honorable Bob Goodlatte
Chairman

Committee on the Judiciary
US. House of Representatives
Washington, DC 20515

Dear Mr. Chairman:

This responds to your letter to the Attorney General dated August 10, 2017, regarding
Operation Chokepoint, a misguided initiative conducted during the previous administration. We
share your view that law abiding businesses should not be targeted simply for operating in an
industry that a particular administration might disfavor. Enforcement decisions should always be
made based on the facts and the applicable law. We are sending identical responses to the other
Members who joined in your letter.

Operation Chokepoint entailed the issuance of a set of subpoenas in 2013. Attached to
some of those subpoenas was a guidance document issued by the Federal Deposit Insurance
Corporation (FDIC). That FDIC guidance included-a footnote listing certain ?elevated?risk?
merchants, including short?term lenders and ?rearms dealers. The FDIC subsequently rescinded
its list of purportedly ?high-risk? merchants. The Department of Justice (Department) strongly
agrees with that withdrawal. All of the Department?s bank investigations conducted as part of
Operation Chokepoint are now over, the initiative is no longer in effect, and it will not be
undertaken again. Some of the responses to those subpoenas led to the discovery of other
criminal activity involving certain individuals and non?bank entities. To the extent the
Department continues to pursue those ancillary investigations, none relates to or seeks to. deter
lawful conduct.

The Department is committed to bringing enforcement actions only where warranted by
the facts and the applicable law, Without regard to political preferences. This approach honors
the Department?s fundamental obligation to focus on the lawbreakers that deserve our undivided
attention, and thereby protect the American public from fraud and other criminal activity. We
reiterate that the Department will not discourage the provision of ?nancial services to lawful
industries, including businesses engaged in short-term lending and firearms-related activities.

The Honorable Bob Goodlatte
Page Two

We hope this information is helpful. Please do not hesitate to contact this of?ce if we
may provide additional assistance regarding this or any other matter.

  

ssistant Attorney General

cc: The Honorable John Conyers, Jr.
Ranking Member