NRA Files For Bankruptcy Amid Fraud Suit In New York

16 Janvier, 2021, 02:26 | Auteur: Anatole Charbonneau
  • National Rifle Association says it has filed bankruptcy petitions in US court

The National Rifle Association has filed for Chapter 11 bankruptcy, as it seeks to leave NY and reincorporate in Texas, the gun rights organization announced Friday.

The National Rifle Association announced Friday that it has filed for bankruptcy.

The Associated Press reported that "the coronavirus pandemic has also upended the NRA, which a year ago laid off dozens of employees, canceled its national convention and scuttled fundraising".

The NRA laid out a plan that involves some restructuring, including declaring bankruptcy in Texas, though the organization said Friday it is at the strongest financial position in its history.

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The NRA filed the Chapter 11 petitions in US Bankruptcy Court in Dallas, it said in a news release.

The group said it plans to leave NY and reincorporate as a Texas nonprofit, in an move it is calling "Project Freedom".

The gun-rights group boasts about 5 million members.

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The suit additionally alleges that former NRA Treasurer and Chief Financial Officer (CFO) Wilson "Woody" Phillips, former Chief of Staff and the Executive Director of General Operations Joshua Powell, and Corporate Secretary and General Counsel John Frazer failed to manage the nonprofit's funds and violated numerous state and federal laws.

"The NRA is not "bankrupt" or 'going out of business, '" he said. Her office's lawsuit last year highlighted misspending and self-dealing claims that have roiled the NRA and its longtime leader, Wayne LaPierre, in recent years - from hair and makeup for his wife to a $17 million post-employment contract for himself.

Shortly after the announcement, New York Attorney General Letitia James said she would not allow the NRA to "evade accountability" or oversight.

The bankruptcy won't impact membership, according to LaPierre.

The largest single claim, totaling more than $1.2 million, was from Ackerman McQueen, the NRA's former public relations firm. A message seeking comment was left with Ackerman McQueen.

"Obviously, an important part of this plan is 'dumping New York.' The NRA is pursuing reincorporating in a state that values the contributions of the NRA, celebrates our law-abiding members, and will join us as a partner in upholding constitutional freedom".

"This strategic plan represents a pathway to opportunity, growth and progress".

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