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Chapter 11 Bankruptcy Protection NRA File Calls Texas Incorporation To Duck New York Indictment

Image: Wayne LaPierre, Executive VP of the NRA.Source: National Rifle Association

By PAUL J.WEBER and MICHAEL R.SISAK

Austin, Texas (AP) —The National Rifle Association announced on Friday that it is filing for bankruptcy protection and aims to include the country’s most politically influential gun rights group in Texas instead of New York. ..

Is the announcement the number of New York Attorney Generals suing the organization for accusing executives of illegally diverting tens of millions of dollars for luxury self-guided tours, employee no-show contracts, and other suspicious spending? It was done a month later.

The coronavirus pandemic also overturned the NRA, which fired dozens of employees last year. The group canceled the national convention and abandoned funding. The NRA bankruptcy filing lists assets of $ 100 million to $ 500 million and liabilities of $ 100 million to $ 500 million. Nevertheless, when the NRA announced the move, it claimed that the organization was “in the strongest financial position in years.”

The NRA has filed for Chapter 11 bankruptcy in a federal court in Dallas and said it will be incorporated in Texas. In Texas, a limited liability company, Sea Girt LLC, was established in November 2020. SeaGirt LLC filed another bankruptcy filing on Friday. Debt is less than $ 100,000.

The NRA will consist of three NRA staff members, whose submission was established in September by longtime leader Wayne Lapierre to oversee its legal strategy. He said he had decided to apply for bankruptcy protection in consultation with the “Special Litigation Committee”. On January 7, the Nuclear Regulatory Commission voted to clarify Lapierre’s employment contract, empowering him to “reorganize or restructure” the organization.

“This move will enable long-term and sustainable growth and ensure the continued success of the NRA as a leading defender of constitutional freedom in New York’s toxic political environment. “Let’s do it,” NRA said in a statement.

A message requesting comment was left to a Dallas lawyer who filed for bankruptcy on behalf of the NRA and Sea Girt LLC.

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Shortly after the announcement, New York Attorney General Letitia James said the NRA would not “avoid accountability” or allow oversight. Last year’s proceedings in her office highlighted pending self-dealing claims that have recently upset NRA and LaPierre, from his wife’s hair and makeup to his own $ 17 million post-employment contract.

“The financial state claimed by the NRA has finally reached its moral state, bankruptcy,” James said.

The Gun Rights Group boasts about 5 million members. Headquartered in Virginia, NRA was founded in 1871 as a non-profit organization in New York and incorporated into the state. Going forward, the NRA said it would consider opportunities for the Commission to relocate some of its operations to Texas and elsewhere.

NRA’s largest creditor, $ 1.2 million in debt, is Ackerman McQueen, the group’s former advertising agency behind the currently closed NRATV service. The NRA sued an Oklahoma-based company in 2019, alleging that it was overcharged and said it was in debt in a bankruptcy filing on Friday. The proceedings are pending. A message asking for comment was left on Ackerman McQueen.

In a proceeding in New York, Ackerman McQueen was accused of supporting luxury spending by having Lapierre and other NRA executives pick up tabs and send a lump sum to the organization as “out-of-pocket expenses.”

Bill Powers, a spokesperson for Ackerman McQueen and a former Nuclear Regulatory Commission spokeswoman, said: “Wayne LaPierre and his wife, and their lap dogs, cannot mask the moral bankruptcy of the NRA board.

Court records also show more than $ 960,000 to pay to Membership Marketing Partners LLC, a company headquartered at the same address as the NRA. Records show that Speedway Motorsports, a North Carolina-based company that owns and operates NASCAR trucks, has been paid an additional $ 200,000.

Republican Governor of Texas Greg Abbott immediately welcomed the news and tweeted, “Welcome to Texas — a state that protects the Second Amendment.” The NRA said it has more than 400,000 members in Texas and plans to host an annual convention in Houston later this year.

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Sisak reported from New York. Dallas Associated Press reporter Jake Braberg contributed to this report.

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Source: Associated Press

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