On the heels of the National Rifle Association’s first federal bankruptcy court, New York Attorney General Letitia James’s (D) office told a judge not to let the arms group attempt to postpone proceedings to dissolve them.
James Sheehan, the head of the Attorney General’s Charities Office, denounced the NRA’s demand for deferment of those efforts through their federal bankruptcy lawsuit as a gameplay.
“The NRA’s apparent attempt to automatically suspend this action by filing a bankruptcy notice is just the kind of procedural abuse that should alleviate the simultaneous exercise of jurisdiction by state and federal courts,” Sheehan wrote in a letter Wednesday. .
Less than a week ago, on Jan. 15, the NRA announced it was “DUMPING New York” by “taking advantage of bankruptcy court protections” to reinstate itself as a Texas nonprofit. Federal bankruptcy proceedings are moving fast in the Northern District of Texas, where a hearing is scheduled for 2:00 p.m. Central Time.
The warring arms group has fought for its life since the New York Attorney General filed a 163-page complaint accusing four of its current and former executives of “pervasive and systematic illegal behavior.”
Claims that NRA leader Wayne LaPierre Using the group as a “ personal piggy bank, ” the lawsuit described his private jet trips to the tropics and African safaris with donor money. The attorney general accused NRA executives of pocketing millions for their personal gain, filing false reporting documents, awarding no-show contracts to loyalists, and retaliating against whistleblowers.
When the NRA claimed to be quitting New York, James insisted her pursuit of the group would not end.
“The NRA’s claimed financial standing has finally reached its moral status: bankruptcy,” James wrote in a statement at the time. “While we are reviewing this filing, we will not allow the NRA to use this or any other tactic to circumvent my office’s accountability and oversight.”
James made it clear that the NRA’s bankruptcy filing conflicts with their self-proclaimed financial health.
The NRA has explicitly stated that it is seeking to leave New York, where it has been established for nearly 150 years, to escape the authority of this Court and the scrutiny of the Attorney General, who falsely accuses it of ‘misuse of legal and regulatory authority, “says the five-page letter. The NRA claims its bankruptcy filing is not financially motivated, and claims that the organization is “in the strongest financial condition in years.” “
The NRA has no offices in Texas, but it has settled through a subsidiary, Sea Girt, LLC, the attorney general said.
Typically bankruptcy proceedings interrupt enforcement actions like this one, but James says her action falls under two exceptions designed to protect the public from fraud and from charitable abuse of her charitable status. This is how her office described that exception:
With regard to the monetary purpose review, none of the attorney general’s claims imply any interest of the State of New York in the NRA’s property, but instead seeks to enforce compliance with state law restricting the administration of the NRA. NRA regulates as a state-chartered non-profit charity. Claims for financial restitution of charitable goods are directed against individual defendants only. Any monies recouped by the Attorney General will be returned to the NRA or, upon judicial dissolution, used in accordance with the intention of the donor or with the directions and approval of the court for a purpose substantially equal to the mission of the NRA. With regard to the public policy review, the Attorney General does not assess private rights against the NRA, but enforces New York law which is intended to protect the public and the undefined charity beneficiaries as a class from public fraud and misconduct charities.
If the NRA fails to pause proceedings in New York, the group will go back to court on Thursday for a motion to dismiss. Their lawyer did not immediately respond to an email asking for comment.
Read the letter from the NYAG below:
(Photo by Alex Wong / Getty Images)
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