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Bloomberg news reported a few hours ago that the National Rifle Association has filed for bankruptcy as part of a ‘restructuring move.’ The organization hopes to move to Fort Worth, Texas to avoid further entangling legal problems in New York.
The National Rifle Association of America filed for Chapter 11 bankruptcy on Friday with plans to regroup in Texas, citing opposition in New York.
The group intends to restructure and reincorporate, according to a statement on its website. The gun rights group said the filing will help it “exit what it believes is a corrupt political and regulatory environment in New York,” according to the statement.
“The move will enable long-term, sustainable growth and ensure the NRA’s continued success as the nation’s leading advocate for constitutional freedom – free from the toxic political environment of New York,” the NRA said.
Chapter 11 bankruptcy allows entities to continue operating while working on a plan to repay creditors. The petition listed assets and liabilities of as much as $500 million each.
The organization has been beset by complaints over lavish spending and internal battles as it has battled a lawsuit by New York Attorney General Letitia James to dissolve the New York-based organization. She accused the NRA’s leader Wayne LaPierre and three others of fleecing it. Washington D.C. Attorney General Karl Racine filed a separate lawsuit against the NRA’s charitable arm, accusing it of misusing donor funds.
We reported in August of 2020 how the NRA had been sued by New York Attorney General Letitia James.
James accused LaPierre and other leadership of “self-dealing and mismanagement” and went on to say that the group’s activities violated state laws for nonprofits.
We have reported before how LaPierre used the organization’s jet to shuttle his relatives around the country. You can search this website for a half a dozen other instances of gross mismanagement of donor funds.
But we didn’t know the half of it!
Letitia James alleged that NRA leaders took funds intended for activism to pay for private jet trips, multiple family vacations to the Bahamas, $65,000 on Christmas gifts, $40,000 on suits at a Beverly Hills boutique, and more.
In total, James alleges that the excessive spending was directly related to a $64 million dollar reduction in the bottom line of the organization –- this in just three years. These actions have left the NRA running at a deficit.
Many gun owners think of the NRA as being headquartered in Virginia, but their not-for-profit paperwork is filed in New York. That’s where it was originally founded in 1871 and despite having their main office in Virginia, they still fall under New York — and thus AG Leticia James’ — jurisdiction.
Spin Hard, Spin Fast, LaPierre!
NRA chief Wayne LaPierre tried to spin the move as a victory, posting a letter on a new popup website that was titled “NRA Dumps New York To Reincorporate In Texas.”
Perhaps LaPierre hasn’t given up on the $6 million dollar Dallas mansion he wanted the NRA pass off as a business expense?
Either way, gun owners have caught onto the fact that Wayne LaPierre is using the donated funds of the NRA as his own personal treasure chest. Even if LaPierre is given the boot, it will be years before the NRA is the lean, mean, fighting organization that gun owners need.
But that’s not all bad. Rising behind the bloated carcass of the NRA is the rapidly growing American Firearms Association. A 100% no-compromise national gun rights organization, this group is led by rock-solid defenders of the Second Amendment.
They are exactly the sort of fighters that gun owners have always hoped the NRA would be — but were often disappointed to see one compromise or sellout after another.