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Mon May 3, 2021, 10:27 PM

U.S. trustee opposes NRA bankruptcy petition in blow to gun rights group

Source: Washington Post

A U.S. bankruptcy administrator asked a federal judge Monday to dismiss the National Rifle Association’s efforts to declare bankruptcy or appoint a trustee or examiner to oversee the gun rights organization — a setback for the group at the close of a federal court hearing to consider its petition.

The recommendation bolstered the arguments of New York Attorney General Letitia James (D), whose office has fought the NRA’s attempts to relocate from New York to Texas, and came after senior NRA executives acknowledged in court testimony that they received lavish perks.

Linda Lambert, a lawyer with the U.S. trustee’s office — which participates in bankruptcy cases to protect taxpayer interests and enforce bankruptcy laws — told the court that the evidence presented in the hearing showed that the nonprofit organization lacked proper oversight and that personal expenses were masked as business costs.

Adam Levitin, a bankruptcy expert at Georgetown University Law Center, said the position of the trustee — a Justice Department official who typically remains neutral in a bankruptcy proceeding — does not bode well for the NRA.

-snip-

By Tom Hamburger
May 3, 2021 at 9:51 p.m. EDT


Read more: https://www.washingtonpost.com/politics/nra-bankruptcy-trial/2021/05/03/173a3f1c-ac28-11eb-acd3-24b44a57093a_story.html



Source: New York Times

N.R.A. Leadership and Bankruptcy Assailed by U.S. Trustee

In a rare move, the trustee, part of the Justice Department, called for the dismissal of the N.R.A.’s bankruptcy filing or the appointment of an outside monitor.

By Danny Hakim
May 3, 2021
Updated 9:32 p.m. ET

The National Rifle Association’s hopes of end-running a legal challenge in New York were dealt a serious blow on Monday when a Justice Department official rebuked its leadership and called for the dismissal of its bankruptcy filing or the appointment of an outside monitor to oversee its finances.

Lisa L. Lambert, a lawyer in the United States Trustee’s office, which is part of the Justice Department, said the “evidentiary record clearly and convincingly establishes” that Wayne LaPierre, the longtime N.R.A. chief executive, “has failed to provide the proper oversight.” For a number of years, she added, “the record is unrefuted that Wayne LaPierre’s personal expenses were made to look like business expenses.”

Mr. LaPierre and the N.R.A. had filed for bankruptcy not because of any financial distress, but as a strategy to avoid litigation in New York, where the attorney general, Letitia James, is seeking to shut down the organization and claw back millions of dollars in allegedly misspent funds from Mr. LaPierre and three other current or former executives.

The N.R.A. was chartered in New York a century and a half ago, but it filed its bankruptcy case in federal court in Dallas and is seeking to move its charter to Texas, where politicians are far more favorable to the organization. But the position of the U.S. trustee’s office, which weighed in during closing arguments on the final day of the trial, is likely to weigh on the presiding judge, Harlin D. Hale, who said he will decide by early next week. The United States Trustee Program oversees the integrity of the nation’s bankruptcy courts.

-snip-

Read more: https://www.nytimes.com/2021/05/03/us/nra-bankruptcy-united-states-trustee.html

11 replies, 1976 views

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Reply U.S. trustee opposes NRA bankruptcy petition in blow to gun rights group (Original post)
Eugene May 3 OP
Chainfire May 3 #1
JudyM May 3 #2
heckles65 Tuesday #3
Grimelle Tuesday #9
SergeStorms Tuesday #4
bringthePaine Tuesday #5
GB_RN Tuesday #6
Calista241 Tuesday #7
Steelrolled Tuesday #11
SunSeeker Tuesday #8
lagomorph777 Tuesday #10

Response to Eugene (Original post)

Mon May 3, 2021, 10:52 PM

1. Sounds like old Wayne and his National Republican Army may grow to regret non-profit status

It couldn't happen to a nicer bunch.

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Response to Eugene (Original post)

Mon May 3, 2021, 11:02 PM

2. Ooh, this looks promising.

Looks like there’s a case to be made for fraud.

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Response to Eugene (Original post)

Tue May 4, 2021, 12:02 AM

3. Ouch that's gotta hurt!

Bankruptcy judges usually go along with what the trustee believes to the facts.

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Response to heckles65 (Reply #3)

Tue May 4, 2021, 01:13 PM

9. Agree

The stopped being a non-profit when their goal was to let people die in the streets.

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Response to Eugene (Original post)

Tue May 4, 2021, 01:00 AM

4. "Non-profit".....

my ass. The NRA has been VERY profitable for ThePeter and his cronies at the top of the organization. Screw them. Republicans made it so difficult for average people to file Chapter 11, now it's their turn to suffer a little.

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Response to Eugene (Original post)

Tue May 4, 2021, 01:01 AM

5. ace move, playing for keepsies now...

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Response to Eugene (Original post)

Tue May 4, 2021, 01:11 AM

6. The Nazi Rifle Association

Should be classified as a domestic terrorist organization.

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Response to Eugene (Original post)

Tue May 4, 2021, 01:21 AM

7. Everyone here seems to think the NRA is the end all be all of gun advocacy groups.

The Second Amendment Foundation is way more effective in advancing gun rights than any other organization. They financed both the Heller and McDonald cases before the Supreme Court, when the NRA thought the cases were too risky.

The NRA is the big the big decoy we’re all focused on, while other groups are out expanding the gun rights agenda.

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Response to Calista241 (Reply #7)

Tue May 4, 2021, 02:03 PM

11. Yeah, I know a few gun owners who advocate gun-rights,

but the NRA means nothing to them.

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Response to Eugene (Original post)

Tue May 4, 2021, 03:26 AM

8. Good. They shouldn't use bankruptcy to get out of Leticia James' dissolution lawsuit.

They belong on the dust heep of history.

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Response to Eugene (Original post)

Tue May 4, 2021, 01:19 PM

10. Good. Let the final chapter of their sordid history be Chapter 7.

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