The National Rifle Association announced Friday that it has filed for bankruptcy and will move out of New York and restructure the organization as a nonprofit in Texas.
The nation’s leading gun rights advocacy group said that the move to Texas will enable the group to “exit what it believes is a corrupt political and regulatory environment in New York.”
“By exiting New York, where the NRA has been incorporated for approximately 150 years, the NRA abandons a state where elected officials have weaponized the legal and regulatory powers they wield to penalize the Association and its members for purely political purposes,” the NRA said in a statement.
New York Attorney General Letitia James filed a lawsuit seeking to dissolve the NRA in August, alleging that senior leaders of the group misused tens of millions of dollars, diverting the funds for personal use and other illegal purposes.
The NRA denied the allegations and filed a lawsuit of its own against James, accusing her of violating the group’s free speech rights and requesting that her investigation be blocked. The move to Texas and restructuring of the group could prevent the New York attorney general from seeking the dissolution of the group.
The group filed Chapter 11 petitions in U.S. Bankruptcy Court in Dallas, listing assets and liabilities of $100 million to $500 million.
There are a lot of good reasons for the NRA to move from New York to Texas apart from the lawsuit (though that’s a pretty big one), but it won’t be restored to a fully functioning organization until Executive Vice President Wayne LaPierre is gone.
The NRA has been in crisis for over a year because LaPierre has engaged in what appears to be systematic looting through contracts to media company Ackerman McQueen and other entities that seem very, very chummy with LaPierre:
This 100-page document…contains unprecedented disclosures of where the money categorized as expenditures for “fund-raising” and “public relations” actually went. For example, it was revealed for the first time the Mercury Group, an Ack-Mac subsidiary run by LaPierre’s closest confidant, Tony Makris, received $5.8 million from NRA in that year; another Makris-run company, Under Wild Skies, got $2.6 million. Meanwhile, NRA has nearly exhausted its $25 million credit line (secured by a mortgage on its headquarters building), liquidated $2 million from an investment fund, borrowed close to $4 million from its officers’ life insurance policy and extracted about $5 million in office rent and overhead from the NRA Foundation.
This, in the same year that NRA’s 10 highest-paid executives received compensation aggregating over $8 million.
Unfortunately, the NRA is structured so that LaPierre has more institutional power than the NRA’s elected President, something Oliver North found out. The NRA needs LaPierre out and a forensic audit to uncover past abuses before gun owners give it another dime. I’ve let my membership lapse because of the crooked self-dealing on display by LaPierre and his cronies, and I suspect there are millions of other gun owners like me. Instead I joined Gun Owners of America, because I know my membership fees won’t be going to line Wayne’s pockets.
No Lawyers – Only Guns and Money has been following every twist and turn of the NRA/LaPierre problems for years, so go over there and start reading if you want all the deep background on the situation.