“Can’t Escape Justice:” Brady Applauds Decision to Throw Out NRA Bankruptcy Filing

Washington, D.C., May 11, 2021 - Following a decision by U.S. Bankruptcy Judge Harlin Hale that the National Rifle Association cannot use bankruptcy proceedings to reincorporate in Texas and escape investigation by the state of New York, Brady reiterates its call for accountability for the NRA’s well-documented corruption. Judge Hale's decision will allow a lawsuit from New York Attorney General Letitia James to proceed. Brady reiterates its support for that suit and a similar suit brought by Washington, D.C. Attorney General Karl Racine.

Brady President and former Corporate Restructuring Attorney Kris Brown shared:

“Today’s decision is a historic win for the rule of law and a sure sign of defeat for the NRA and its corrupt leadership. The NRA’s bankruptcy was deemed to be bad faith, much like every promise and statement the organization has made for decades. The NRA cannot escape justice. The court has ruled against the organization after weeks of damning testimony, including Executive Vice President Wayne LaPierre’s own admission that he did not inform most of his board and other top officials before initiating the bankruptcy.

This decision was correct and it marks a new chapter in the legal proceedings against the NRA. Brady reiterates its support for New York Attorney General Letitia James who has prudently sought to hold the NRA fully accountable for its malfeasance and corruption. Today’s victory provides even more momentum for AG James and a similar lawsuit filed by Washington, D.C. Attorney General Karl Racine. As we have said in the past, the time is right to dissolve today’s corrupt version of the NRA, which has strayed hopelessly away from its roots focused on gun safety.”

About Corruption at the NRA:

For years, there have been clear signs and explicit statements by former NRA employees indicating that NRA leadership has abused their positions and their authority as fiscal stewards of the organization in violation of its 501c3 tax-exempt status. These include in-depth statements made by Joshua L. Powell this fall. Powell previously served as chief of staff to LaPierre and detailed that LaPierre routinely abused his position and misused NRA funds for his personal benefit and comfort. In October 2019 Brady filed a complaint with the IRS seeking an examination into, and ultimately a revocation of, the NRA’s tax-exempt status. To date, this petition has received over 150,000 signatures.

About Lawsuits Against the NRA:

On August 6, 2020, New York Attorney General Letitia James filed a complaint in the Supreme Court of New York that includes 18 causes of action against the National Rifle Association (NRA) and four of its senior officers, current and former, for fraud, malfeasance, false filings and abuse of the NRA’s tax-exempt status, among other charges. AG James’ action seeks to dissolve the organization in its entirety, following its rampant and wanton misfilings and false reporting. On the same day, Washington, D.C. Attorney General Karl Racine filed suit against the NRA Foundation and the NRA for misusing donations to benefit the NRA’s executives. That suit seeks a return of misused funds and court-mandated alterations to the NRA Foundation to ensure it operates in compliance with its charitable purpose.