Bank of America freezes gun manufacturer’s funds

American Spirit ArmsAmerican Spirit Arms, a Scottsdale, Ariz., gun manufacturer, reports that it has a real cash flow problem — after Bank of America froze its business account.

The company manufacturers arms and components based on the AR-14, M-16 and M4 platform, the type targeted for a proposed ban by U.S. Sen. Dianne Feinstein, D-Calif.

Just like every other firearm manufacturer, American Spirit has experienced a surge in sales in recent weeks due to fears of anticipated gun control legislation in the wake of the shooting at Sandy Hook Elementary School in Newtown, Conn.

On Dec. 29, American Spirit’s owner, Joe Sirochman, posted the following on the company’s Facebook page:

“American Spirit Arms web site orders have jumped 500 % causing our web site E commerce processing larger Deposits to Bank of America.

“This [threw] up a huge red flag with Bank of America. So they decided to hold the deposits for further review.

“After countless hours on the phone, I finally got a Manager in the right department that told me the reason that the deposits were on hold for further review — her exact words were — “We believe you should not be selling guns and parts on the Internet.”

Sirochman wrote that he told the bank manager “they have no right to make up their own new rules and regs” and that his company is a “firearms manufacturer with all the proper licensing” and is “audited by ATF and Homeland Security on a regular basis.”

Sirochman promised to “keep everyone posted on new developments,” then offered his company’s address and contact information.

The entire Facebook post can be read here.

This isn’t the first time Bank of America has pulled this stunt. According to an April 20, 2012, Daily Caller report, McMillan Fiberglass Stocks, McMillan Firearms Manufacturing and McMillan Group International were told by the bank that after 12 years of doing business, it was time for them to “find another bank.”

“The McMillan group of companies may have the last laugh,” the Daily Caller reported. “It is considering no longer accepting Bank of America credit cards for purchases.”

Read more at CNSNews.com.

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About Michael Dorstewitz

Mike has been with BizPac Review almost from the beginning. Email Mike at michael@bizpacreview and follow him on Twitter at @MikeBPR.

  • Gwen Lebec

    I hope this is true. It would mean that B of A does have the capability to make ethical choices and decisions. I might get over how ticked I am about their handling of the mortgage crisis and a number of other things.

    • anthony

      How is it ethical to discriminate against law abiding citizens?

    • denzter

      Gwen…. have you smoked your breakfast ?

  • Brian

    Gwen, you're right. They are making an ethical decision…a poor one. So why does that make you happy? You think it's right for a corporation to make arbitrary decisions regarding law abiding citizens? It's not like they gave them warning and said 'Oh, we may not want that type of business anymore', by the sounds of it. They just did what they wanted and let the customer figure it out. How is any of that good ethical business practice?

    • juliek

      It's not good ethical practice for any business, especially a bank. The victim businesses should lawyer up pronto! A class action may be in order. If one type of business can be singled out, the chances are that other types of businesses could be targeted next.

  • BCcappy

    I would dutifully suggest that EVERY firearms dealer, manufacturer, supplier (parts, etc), Ammunitions manufacturer be sure to immediately start eliminating EVERY ACCOUNT they have with this unpredictable source of income for their businesses future survival insurance. If anyone disagreeing with the financial extortion practices of BOA they should also immediately consider looking to other options to transfer any and all money, loans, home mortgages, etc out of the realm of BOA conglomerate services to as large a degree as possible.

    Any 10 to 100 small to mid sized businesses doing so may have little effect on BOA, but if people like Ted Nugent, and other high dollar accounts also started promoting this process (without going back if BOA changes practices due to their nosensical practice in decision making) it may send a fair sized signal that even if Zero is propping you up the consumers may not do so if you contiinue to work towards shutting down the 2nd amendment.

  • barbara meredith

    Gwen, so you like your freedom taken away, what if the bank withhold your money because they don't like the way you are earning it, if the shoe was on the other foot you wouldn't be so for this,

  • Bob Johnson

    I am guessing Bank of America will lose a lot of business over this. Remember Bank of America wanted to issued credit cards to ILLEGAL ALIENS without SS numbers. Actions have consequences. FOR Now, we can still chose what bank to use.

  • http://www.karldickey.com Karl Dickey

    The better question to ask is why are people still banking with B of A ? Any freedom loving American would have left them long ago.

  • Allison Wunderland

    Sounds like blatant obstruction of lawful interstate commerce. Bank of America needs to be brought before review by Federal Trade Commission, Interstate Commerce Commission, even the Bureau of Alcohol, Tobacco, Firearms.

    We sent Bank of America an email —

    https://www1.bankofamerica.com/small_business/bus

    If we are to believe news reports, Bank America is holding funds — ipso facto obstructing lawful commerce, for a Federally licensed and fully federally/interstate compliant firearms manufacture/dealer.

    Putative "reason" provided by Bank America is "sudden spike in deposit transactions." Apparent reason is because this business American Spirit Arms, Scottsdale, Ariz. is doing a thriving and FULLY LAWFUL business in internet/interstate firearms sales.

    If Bank America has been watching the news, you'd realize that gun sales are up in the USA some 500% because of the current Admin. lurch toward reinstatement of the Assault Weapons Ban.

    Federal Firearms License holders are vetted by the US Govt. American Spirit Arms, Scottsdale, Ariz. is NOT a gun-runner nor unlawful trafficker in arms.

    Bank America's reactionary agenda is showing, and it's besmirching your public relations.

    Bank America needs to get with the program.

  • Joe

    I am researching this to make sure of it's validity. If it is true I will pull all my assets from B of A.

  • Pingback: If you are a gun owner at Bank of America…it’s time you left them | _

  • Frank

    I agree Brian. I think the rest is up to each of us. Put our assets and resources in banks other than BoA. Refuse anything financed by BoA. If millions of us start doing that, they would need another bail out very soon.