NRA files for bankruptcy and moves from NY to Texas
- by Virginia Carter
- in World Media
- — Jan 17, 2021
The NRA's bankruptcy filing listed between $100 million and $500 million in assets and between $100 million and $500 million in liabilities.
The National Rifle Association on Friday filed petitions with a USA bankruptcy court seeking protection from creditors by restructuring, the gun rights advocacy group announced.
The group said it plans to leave NY and reincorporate as a Texas nonprofit, in an move it is calling "Project Freedom".
An attendee examines various guns at a booth during the National Rifle Association convention in Dallas, on May 4, 2018.
LaPierre - who is also reportedly the subject of an IRS investigation for criminal tax fraud - additionally accused James and New York Gov. Andrew Cuomo (D) of "gross overreach" and said moving to Texas offered "protection from New York officials who illegally abused and weaponized the powers they wield against the NRA and its members".
The gun rights organization says it is getting away from the "toxic political environment" of NY.
NRA chief executive Wayne LaPierre announced the bankruptcy in a public letter to members and supporters.
The latest development came months after the NY attorney general announced a lawsuit with the intention to dissolve the pro-gun group, after an in-depth investigation revealed that NRA executives routinely misused charitable funds for personal gain and regularly awarded contracts to friends and family members.
Shortly after the announcement, James said she would not allow the NRA to "evade accountability" or oversight.
The Second Amendment of the U.S. Constitution guarantees the right to keep and bear arms.
"Obviously, an important part of this plan is 'dumping New York,"' LaPierre said in a prepared statement. In November, the NRA agreed to pay $2.5 million and accept a five-year ban on marketing insurance in the state.
Usually, groups in strong financial condition don't have to seek the protection of the bankruptcy court, but no one expects full transparency from an organization with ties to Russian-funneled donations, spies, and other shady dealings that go all the way to the White House. The lawsuit is pending.
Among the dozens of examples of lavish spending that LaPierre was reimbursed for included "private jet travel for purely personal reasons; trips to the Bahamas to vacation on a yacht owned by the principal of numerous NRA vendors; use of a travel consultant for costly black vehicle services; gifts for favored friends and vendors; lucrative consulting contracts for ex-employees and board members; and excessive security costs". Another $200,000 is owed to Speedway Motorsports, the North Carolina-based company that owns and operates NASCAR tracks, according to the records.
