Under fire in New York on charges of misspending members’ money, the National Rifle Association filed for bankruptcy Friday and announced plans to reincorporate in gun-friendly Texas.
The nation’s biggest pro-gun group said it will restructure as a Texas nonprofit “to exit what it believes is a corrupt political and regulatory environment in New York,” a statement on the NRA’s website reads.
“This strategic plan represents a pathway to opportunity, growth and progress,” NRA Chief Executive Wayne LaPierre said in a statement. “Obviously, an important part of this plan is ‘dumping New York.'”
New York Attorney General Letitia James sued to dissolve the NRA in October. Authorities say senior leaders of the nonprofit registered in New York illegally spent tens of millions of NRA members’ dollars for vacations, private jets, expensive meals and other luxury items.
“The corruption, the greed has finally and fortunately resulted in this organization filing bankruptcy,” James said Friday in an online town hall meeting with Rep. Alexandria Ocasio-Cortez (D-N.Y.).
“We will continue our efforts because this organization has gone unchecked for years, and it’s critically important that we continue to hold them accountable, even in bankruptcy court,” James said.
Earlier Friday, James slammed the NRA’s filing in Texas bankruptcy court in a statement, and said the state’s legal fight will continue undeterred.
“The NRA’s claimed financial status has finally met its moral status: bankrupt,” James’ statement said. “While we review this filing, we will not allow the NRA to use this or any other tactic to evade accountability and my office’s oversight.”
James’ office has called out LaPierre for spending $800,000 on eight getaways to the Bahamas over three years, and for accepting expensive gifts.
The NRA — based in Fairfax, Va. despite being chartered in New York — also appeared to dole out lucrative no-show contracts to former employees to “buy their silence and continued loyalty,” James’ office has charged.
New York’s case seeks to dissolve the NRA and require each of the current and former executives accused of misspending money to make full restitution.
The cash-strapped gun group has been beset by financial trouble and internal unrest in recent years.
The NRA in 2019 ousted its top lobbyist and one of his deputies, and forced president Oliver North to step down amid accusations that he threatened to extort LaPierre into resigning by threatening to make “destructive allegations” about the organization’s management.
Gun control advocates said the NRA’s bankruptcy filing is nothing more than an effort to evade James’ legal maneuvering.
“Let’s be clear about what’s happening here: The NRA — which is losing power and hemorrhaging money — is now filing for bankruptcy in an attempt to escape legal culpability for years of financial mismanagement and illegal self dealing,” said John Feinblatt, president of Everytown for Gun Safety.
“This desperate maneuver is a de facto admission of guilt.”
