May 22nd, 2020

Gunwerks States It Has Settled Lawsuit with Lender Wells Fargo

gunwerks wells fargo bank litigation creditor lawsuit federal court loan payment

Today, May 22, 2020, Gunwerks LLC published a statement on its website, declaring that it has settled the lawsuit brought by lender Wells Fargo Bank. This Official Statement from Gunwerks CEO Aaron Davidson explains that the Wells Fargo credit line has been paid. In addition, Davidson said that Gunwerks is NOT delinquent on Wyoming State Sales Taxes and that there are no late payments to the company’s vendors. The lawsuit was filed in U.S. District Court for the District of Wyoming. View Court Documents HERE.

OFFICIAL STATEMENT FROM GUNWERKS CEO
REGARDING WELLS FARGO LITIGATION

Cody, WY – May 22, 2020

The reports of Gunwerks’ demise are completely false. In fact, we’re crushing it! So far, 2020 has set records for sales performance and profitability, and it only gets better from here!

This week’s report of Wells Fargo filing a lawsuit has gotten a lot of attention. The bottom line is, the litigation has been settled, the entirety of our Wells Fargo operating loan has been paid off, and it is business as usual for Gunwerks.

The Wells Fargo narrative of Gunwerks’ financial distress was untrue. The dispute was never about Gunwerks’ financial condition or late payments, but about a difference of opinion on asset valuation. Within days of filing the suit, it has been settled and the case will be dismissed immediately.

Most of the stories circulating around the social media landscape are just wrong! Here are two good examples: In Wells Fargo’s narrative complaint filed in federal district court, they assert that Gunwerks was delinquent on sales tax payments. This is not true now and has never been true (Check here for a list of current delinquents in WY). They also allege that Gunwerks is late paying vendors. Again, this is untrue. We pride ourselves in dealing fairly with our vendors.

Unfortunately, despite our numerous good faith attempts to resolve the issues with Wells Fargo, the bank chose to file a lawsuit, which has now been settled. Fortunately, we had the resources to pay off the credit line within two business days of Wells Fargo filing suit. Our customers have really supported us this year with record sales. We’re on track to have our best performing year on record.

Gunwerks CEO Aaron Davidson Comments on Litigation

About the Future — New Products
In 2020 Gunwerks will be announcing several new and innovative products that have been in development the past several years. Keep an eye out for an entirely new, next-gen rifle system engineered from the ground up, at least three more Skunkwerks projects, and new optics products and ballistic solutions in the Revic lineup.

The damage to Gunwerks’ reputation from Wells Fargo’s lawsuit will take quite a while to overcome, but with our team and a foundation of innovation and product quality, we see this as a minor incident. We’ve never been more excited about our business!

Sincerely,

Aaron Davidson, CEO Gunwerks

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May 21st, 2020

Gunwerks Sued by Wells Fargo to Collect on $2.8 Million Loan

gunwerks llc wyoming wells fargo lawsuit

Wyoming-based Gunwerks LLC is a highly visible producer of high-grade rifles, modern optics, and rifle accessories. Gunwerks had its own television show and operated upscale long-range shooting clinics and guided hunts. Now the company may be in tough financial straights.

K2radio.com reports that: “Wells Fargo Bank has sued the Cody-based custom-rifle maker Gunwerks, LLC, for $2.8 million for unpaid loans and wants the company’s equipment, according to federal court records filed Wednesday. Gunwerks … also owes $1 million to creditors and and for unpaid sales taxes, according to the complaint by the bank and Wells Fargo Equipment Finance, Inc., through its attorneys[.]”

For full details, we recommend you read the full 5/20/2020 news story from Wyoming Radio Station KTWO (K2) in Casper, Wyoming. That report provides extensive details of the legal claims by Wells Fargo. The lawsuit was filed in U.S. District Court for the District of Wyoming. View Court Documents HERE.

Wells Fargo’s complaint alleges that Gunwerks owes the bank roughly $2.8 Million. Wells Fargo further alleges that a Gunwerks financial report reveals that Gunwerks owes approximately $622,000 in creditors’ bills. The complaint also alleges Gunwerks owes $365,000 in unpaid state sales taxes.

gunwerks llc wyoming wells fargo lawsuit

Wells Fargo’s Motion for a Receiver states the loan amount owed is $2,783,757.82, with interest accumulating at more than $20,000 a month.

Wells Fargo is seeking to recover and secure inventory and other Gunwerks property used as collateral for the bank’s loans. The complaint filed in Federal Court alleges: “These circumstances require the immediate appointment of a receiver to recover, salvage, and retain the value of the Collateral.”

Wells Fargo has alleged that Gunwerks has already sold part of the collateral inventory and deposited the proceeds in different banks: “The Borrower has taken control of Wells Fargo’s collateral, refuses to disclose the names and addresses of account obligors for accounts that constitute collateral for Wells Fargo and has removed and refused to remit proceeds of Wells Fargo’s collateral to prevent such collateral from being applied to the Borrower’s loans[.]”

Gunwerks has not made a public statement about the situation: “What all this means for the company’s future and its employees is unknown. A Gunwerks’ spokesman did not return calls seeking comment.” (Source KTWO Report.)

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April 12th, 2018

Gun Politics: Teachers Union Issues ‘Ultimatum’ to Wells Fargo

AFT Teachers union boycott Wells Fargo NRA gun control

The American Federation of Teachers (AFT) plans to boycott Wells Fargo unless that bank stops doing business with the NRA and gun makers. AFT President Randi Weingarten stated: “We’re issuing Wells Fargo an ultimatum — they [sic] can have a mortgage market that includes America’s teachers, or they can continue to do business with the NRA and gun manufacturers. They can’t do both.” The AFT has publicly stated that if Wells Fargo continues to support firearms businesses and the NRA, the AFT will discontinue its popular Wells Fargo mortgage program offered to teach union members. According to Bloomberg, Wells Fargo has loaned more than $430 million to firearms companies over the years. Wells also operates accounts for the NRA.

Report by Dave Dolbee of Cheaper Than Dirt Blog
Last week, the AFT released correspondence between Weingarten and Wells Fargo President Tim Sloan. The release outlined the union’s concerns about Wells Fargo’s connections with the NRA — as well as its threat to stop offering Wells Fargo mortgages, if Wells Fargo continues being the NRA banker. The Wells Fargo mortgage program is part of the Union Privilege program. More than 20,000 AFT members currently hold mortgages through the program.

If Wells Fargo fails to meet the AFT’s demands, the AFT says it will push other Union Privilege organizations to boycott Wells also. The AFL-CIO was copied on the AFT’s demands to Well Fargo.

AFT President Weingarten declared: “The lives of students and educators must be valued more than guns. This is America — Wells Fargo has the right to be the NRA banker, but we have rights too. That’s why if Tim doesn’t ditch his guns business, we’ll ditch Wells Fargo. No words will dissuade us from our view that our society must value people over profits. We have a responsibility on behalf of our members and their students who face potential gun violence every day.”

Dave Dolbee asks some key questions about this AFT ultimatum: “I wonder how the members of the ATF feel about the move. I mean, did the membership vote for this?” Dolbee wonders if the interests of the majority of AFT members are really being served by this boycott, or whether an extremist policy has been adopted based on the political viewpoints of a handful of AFT leaders.

Points to Ponder — Guns vs. Cell-Phones
While the events in Parkland, Florida were tragic, and the nation must develop strategies to prevent the recurrence of such incidents, there are other risks to young students that may be statistically far more significant than gun violence. Newsday.com reports that over 3000 school-age teens die every year in vehicle accidents caused by texting while driving. Another 300,000 teens are injured in texting-related driving accidents.

That works out to 54 teen deaths per week from texting while driving. That is three times the Parkland HS death toll. Will the AFT teachers’ union demand that Wells Fargo stop doing business with smart-phone manufacturers or cellular providers? By distracting teen drivers, cell phones kill countless more students every year than do firearms. So which problem truly deserves more attention from policy-makers?

AFT Teachers union boycott Wells Fargo NRA gun control

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