West Michigan Pawn.JPG

The owner of West Michigan Pawn in Grand Haven said his shop may have been targeted in "Operation Choke Point" by federal authorities.

(Stephen Kloosterman/MLive.com)

GRAND HAVEN, MI – A pawn shop in Grand Haven's tourist-friendly downtown may have been pressured by federal authorities in an initiative called "Operation Choke Point," according to the shop's owner.

In late July, "I had just switched my business bill-pay system," said Brian Brookman, owner of West Michigan Pawn. "I got this letter from them, out of the blue, saying they had closed the account."

A trip to visit a bank manager didn't help clarify the matter.

"I said, 'What's the heck up with this?'" Brookman said. "She just said, 'There's nothing I can do.'"

He found one possible explanation on the Internet: Reports of a federal program, in which authorities pressured banks to close accounts of businesses considered a risk for consumer fraud.

U.S. Rep. Bill Huizenga, R-Zeeland, says it's no joke.

"Despite its Hollywood name, Operation Choke Point is very real," Huizenga said. "The program was started by the Department of Justice in collaboration with the FDIC, The Federal Reserve and the OCC to stop banks and payment processors from providing financial services to merchants suspected of consumer fraud."

The House Financial Service Committee – Huizenga is a member -- conducted a hearing on the issue July 15, calling several federal officials to testify.

"What my colleagues and I have quickly discovered is that this program has expanded well beyond its intended scope and has been used to strong-arm banks into terminating their relationships with lawful and legitimate businesses," Huizenga said.

The U.S. Department of Justice did not respond to a request for comment for this story.

"The notion that bureaucrats in Washington can regulate law-abiding small businesses out of existence in West Michigan should concern everyone no matter their political affiliation," Huizenga said. "This is yet another example of big government run amok."

Brookman, 43, said he doesn't know why his business could have been targeted. He once sold guns at the pawn shop, but said he had quit that part of the business and let his federal firearms license expire back in June. He also buys and sells old coins, something he said that might possibly be considered a "high-risk activity" by feds looking to clamp down on consumer fraud. But local authorities have always kept a close eye on his shop, he said.

"I have probably – quite possibly – the most highly regulated business in Grand Haven," he said. "It's ridiculous that (federal authorities) would pick me."

After venting his frustrations through Facebook, Brookman was contacted by an advocacy group called the U.S. Consumer Coalition, and national media attention began. He was featured in a Tuesday, Aug. 12 post by The Daily Signal, a blog associated with the Heritage Foundation, a conservative Washington, D.C. think tank. That story was linked to by popular conservative news website Drudge Report.

"This all has happened so fast," he said.

On Wednesday, Aug. 13, Brookman was avoiding calls at the pawn shop, answering the shop's phone as "George Clooney." But he made plans to do more national media interviews in his off-hours.

"If the federal government has the resources to come after an absolute nobody like me, then there are a lot of resources being wasted," Brookman said.

Stephen Kloosterman covers local government, employment and the outdoors for MLive Muskegon Chronicle. Email him at sklooste@mlive.com or follow him on Facebook, Twitter, and Google+

.