NRA bankruptcy: Judge dismisses case in blow to gun group – Fresno, California

Fresno, California 2021-05-11 18:26:50 –

Dallas-On Tuesday, a federal judge dismissed the National Rifle Association’s bankruptcy case, accused a powerful gun rights group of financial abuse, and faced a New York state proceeding to close the business.

The case was about whether the state should allow Texas to incorporate the NRA instead of New York, which is suing to disband the group. Headquartered in Virginia, NRA was founded in 1871 as a non-profit organization in New York and incorporated into the state.

Judge Harlin Hale said in writing that he dismissed the proceedings because he discovered that the bankruptcy had not been filed in good faith.

“The court has decided that the purpose of the NRA to file for bankruptcy is that the bankruptcy was filed for unfair profit, unlike the traditional bankruptcy case where the debtor faces financial difficulties and unsatisfactory judgments. I think it’s the same, either in court or to circumvent the regulatory system, “Hale wrote.

His decision followed 11 days of testimony and debate. A New York lawyer and a former NRA advertising agency have burned Wayne LaPierre, the group’s perplexed top executive. Wayne LaPierre admitted that he had driven the NRA into Chapter 11 bankruptcy without the knowledge and consent of the board and other top officers.

“It’s shocking to exclude so many people from the process of deciding to file for bankruptcy, including the majority of boards, chief financial officers and general counsel,” the judge added. ..

Philip Journey, a Kansas judge who was a member of the NRA’s board and wanted to appoint an examiner to investigate the group’s leadership, was brief on Hale’s decision.

Attorney General Letitia James of New York State Attorney General claimed the case was an attempt by NRA leadership to avoid accountability for using the group’s financial resources as a personal piggy bank. However, a NRA lawyer said it was a legitimate effort to avoid a political attack by Democrat James.

Lapierre testified that the bankruptcy was largely kept secret to prevent leakage from a committee of 76 members of the group, which was divided in support of him.

Five months after James’s office filed for dissolution after allegations of illegally diverting tens of millions of dollars for luxury self-guided tours, no-show contracts, and other suspicious spending. , NRA declared bankruptcy in January.

“The NRA cannot decide whether or where to answer the action, and our proceedings will continue in a court in New York,” James tweeted after the ruling. “No one is beyond the law.”

James is New York’s Supreme Law Enforcement Officer and has regulatory power over state-established nonprofits. She sued the NRA last August, stating that the NRA’s “corruption and the breadth and depth of illegality” justified its closure at the time. After claiming that former President Donald Trump’s charitable foundation was used to promote business and political interests, James took similar action to forcefully shut it down.

In a series of tweets, Shannon Watts, who founded GunSense’s Moms Demand Action in the United States, said the bankruptcy dismissal “will take place at the worst time for NRA, just as background checks are being discussed in the Senate.”

“The NRA effectively opposes gun safety and lobby legislators, while at the same time countering legal struggles and rising debt is awkward, if not impossible,” said Michael Bloomberg-backed guns. Watts, who is part of Everytown for safety, said.


Sisak reported from New York.

Copyright © 2021 By AP communication. all rights reserved.

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