The signs had not looked good for Wayne LaPierre and his grift machine. Over the past two weeks, their lawyers had attempted to convince a Texas judge that the NRA should be permitted to reincorporate in that state and, concurrently, file for bankruptcy protection, all in a bid to avoid repercussions following from an investigation into its practices by the New York attorney general. Today, the judge hearing their tortured case for evading the law — Harlin D “Cooter” Hale — ruled against them.
U.S. judge dismisses NRA bankruptcy in victory for New York
The National Rifle Association cannot use bankruptcy to reorganize in gun-friendly Texas, a federal judge in Dallas ruled on Tuesday, handing a defeat to the influential firearms rights group that is facing an effort to dissolve it in New York state.
U.S. Bankruptcy Judge Harlin Hale's decision, following a trial over the legitimacy of the NRA's January bankruptcy filing, means the group will remain incorporated in New York.
Letitia James, New York's attorney general, had last August filed a lawsuit seeking the dissolution of the NRA, which she accused of corruption and misspending.
During the trial, it came out that the bankruptcy scheme had been hatched by a Dallas lawyer and friend of LaPierre’s, Bill Brewer, with most people at the NRA, including its chief financial officer, general counsel, and a majority of its board of directors left out of the loop — a revelation that the judge called, “nothing less than shocking.”
Judge Hale dismissed the case without prejudice — meaning that they can regroup and try again. But the judge made clear his skepticism that bankruptcy was the ideal route.
"The question the court is faced with is whether the existential threat facing the NRA is the type of threat that the Bankruptcy Code is meant to protect against," Hale added. "The court believes it is not."
What with appeals, it’s not clear how soon New York AG James can drop the hammer on the organization, nor how that will play out. But there’s still a lot more to come, it seems, in the acrimonious battle between the NRA and its longtime (30 years!) former advertising partner, Ackerman McQueen. Indeed, its principals showed up in Texas to get a few words in.
NRA’s LaPierre voiced fear of prison time, ad exec testifies
(Bloomberg) -- A former confidant of Wayne LaPierre said that the longtime NRA leader feared the prospect of criminal charges and once described the gun group’s attorney William Brewer as “the only one” who could keep him out of prison.
LaPierre made the comment at a meeting in early 2019, Anthony Markis said Friday at the NRA’s bankruptcy trial. Markis, a senior executive at the ad agency Ackerman McQueen, said LaPierre made the comment amid a contentious breakup between the NRA and the firm.
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Markis didn’t specify why LaPierre feared jail, but The Wall Street Journal reported in October that the Internal Revenue Service is investigating the former NRA leader for possible criminal tax fraud related to his personal expenses.
Stay tuned for more NRA misery. May it be long drawn out, and utterly ruinous.
Tuesday, May 11, 2021 · 9:46:24 PM +00:00
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subtropolis
IANAL, But I believe that, by seeking dissolution of the organization, what Letitia James is doing is to leave Wayne LaPierre twisting in the wind in the face of potential action against him by the IRS. Without the incorporated NRA behind him, he will find himself in a lonely — and expensive — place. I’m keen to know what others think about the NY AG’s strategy.