A federal judge in Texas ruled on Tuesday that the National Rifle Association cannot file for bankruptcy. This is a decision that casts doubt on the Gun Rights Group’s plans to relocate its headquarters to escape surveillance by New York regulators.
Judge Harlin Hale’s decision will take place almost 10 months after New York. Attorney General Letitia James Four of the organization’s top executives have filed proceedings against NRA for mismanagement of funds and violations of state and federal law.
“@NRA cannot decide whether or where to answer the action, and our proceedings will continue in a court in New York,” James tweeted Tuesday after the decision.
January, Nuclear Regulatory Commission Chapter 11 Bankruptcy Protection From that debt, we declare our intention to reorganize and relocate to Texas. Although NRA is based in Virginia, it has long been chartered as a non-profit organization in New York State.
“We are disappointed with some aspects of the decision, but there is no change in the overall direction of our association, its program, or its defense of its second amendment,” Lapierre said in a post-judgment statement. ..
“We will continue to be an independent organization that can set its own path, even when staying in New York to confront the enemy,” he added.
In New York, senior NRA officials have been accused of wasting more than $ 64 million in organizational funding over three years.Senior leaders spend NRA money Trip to the Bahamas, Private jets, luxury hotels, fine restaurants, James claims.
Lapierre called the proceedings “an unfounded and deliberate attack on our organization” and denied the accusation.
NRA does not face “existential threats”
Hale suggested in his ruling that he did not believe that NRA had filed for bankruptcy solely for financial purposes.
“The question facing the court is whether the existential threats facing NRA are the types of threats that the Bankruptcy Code intends to protect,” he wrote. “The court believes that is not the case.”
Hale also suggested that Lapierre and NRA filed for bankruptcy solely to escape James’ pending proceedings. Hale said Lapierre filed bankruptcy documents without notifying the NRA board.
“It’s shocking to exclude so many people from the process of deciding to file for bankruptcy, including the board of directors, chief financial officer, and the majority of legal counsel,” Hale said. Is writing.
Hale’s decision will also take place a week after the US Department of Justice... The Justice Department has also accused Lapierre and others of mismanagement of their funds.
“The record that Wayne LaPierre’s personal expenses looked like business expenses has not been refuted,” US fiduciary assistant Lisa Lambert said at an NRA bankruptcy hearing in Texas last week.
The judge’s ruling surprises some bankruptcy experts who have previously told CBS MoneyWatch that Hale expects to appoint an examiner to investigate NRA’s finances. Hale’s decision is unbiased and is a legal term that means that the NRA can file for bankruptcy again if the group so desires.
It is unclear if the NRA plans to resubmit. The organization did not immediately respond to a request for comment on Tuesday.
Texas Judge Prevents NRA from Declaring Bankruptcy
Source link Texas Judge Prevents NRA from Declaring Bankruptcy