According to Bloomberg, the National Rifle Association will be unable to incorporate in the Second Amendment friendly state of Texas.
The NRA’s Chapter 11 bankruptcy filing was rejected by Texas Bankruptcy Judge Harlin D. Hale, effectively ending the organization’s effort to incorporate in the Lone Star State. The judge wrote that “the NRA is using this bankruptcy case to address a regulatory enforcement problem, not a financial one.” The NRA initially filed for bankruptcy protection in January in an attempt to move litigation to a state with regulatory oversight less hostile towards the gun rights advocacy organization.
In an opinion, dated May 11, 2021, Judge Hale wrote, “the Court finds there is cause to dismiss this bankruptcy case as not having been filed in good faith both because it was filed to gain an unfair litigation advantage and because it was filed to avoid a state regulatory scheme.”
The case fell through as the NRA admitted the organization was not experiencing financial difficulty. This decision surrounds the NRA’s future with a cloud of fog as Democratic AG Letitia James has her sights set on dismantling “the nation’s foremost defender” of the Second Amendment. In August, James charged NRA Chief Executive Wayne LaPierre and other top executives of exploiting the organization and its members for financial benefit. James’ August press release further spells out the accusations:
“The suit specifically charges the NRA as a whole, as well as Executive Vice-President Wayne LaPierre, former Treasurer and Chief Financial Officer (CFO) Wilson “Woody” Phillips, former Chief of Staff and the Executive Director of General Operations Joshua Powell, and Corporate Secretary and General Counsel John Frazer with failing to manage the NRA’s funds and failing to follow numerous state and federal laws, contributing to the loss of more than $64 million in just three years for the NRA.”
PHOTO: Bullseye (Mary Altaffer)
The NRA issued a response to the dismissal:
“The NRA remains determined to confront NYAG Letitia James in her attempt to dissolve NRA. The NYAG seeks such remedies as part of a lawsuit she filed on August 6, 2020. In summer 2018, then NYAG candidate James called the NRA a “criminal enterprise” and “terrorist organization.” Her subsequent pursuit of the NRA has been characterized by many legal experts and constitutional scholars as a gross weaponization of legal and regulatory power . . . The NRA has maintained it is financially viable, following its current pathway, in part, to escape a toxic political environment in New York. The NRA was incorporated in New York in 1871.”
The case will now move back to New York where legal proceedings are expected to last well into next year. This makes the National Rifle Association susceptible to dissolution if James is to win her case in the Supreme Court of the State of New York. The NRA has announced the organization still seeks to establish a new headquarters in Texas, home to over 400,000 NRA members. On Tuesday, Texas GOP Governor Greg Abbott voiced his support for the gun rights advocacy group.
Texas stands with the @NRA and we look forward to working with the Association on their plans to move to Texas.
— Greg Abbott (@GregAbbott_TX) May 12, 2021
Jacob Ornelas is a journalist, social media influencer, and contributor to Def-Con News. He has built a following of over 86,000 conservatives on the social media platform TikTok where he delivers daily headlines without the “legacy media spin.” He can be found on Instagram, Twitter, and Parler @PatriotJakey.
