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I am pleased to announce some exciting news about the NRA. 

The NRA announced it will reorganize the Association as a Texas nonprofit to abandon the corrupt political and regulatory environment in New York. This action will ensure our continued success as the nation’s leading advocate for constitutional freedom.

To facilitate the reorganization, the NRA and one of its subsidiaries filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division. As you may know, chapter 11 proceedings are often utilized by businesses, nonprofits and organizations of all kinds to streamline legal and financial affairs. 

Subject to court approval, the NRA’s new strategic plan involves “dumping New York” and reincorporating the Association in the State of Texas – home to more than 400,000 NRA members and site of the 2021 NRA Annual Meeting being held in Houston. 

 

As many of you have observed, New York is no longer a welcome home to our Association, as its leaders have demonstrated their hostility to the constitutional freedoms in which we believe. Our filing today allows us to wisely seek protection from New York officials who illegally weaponized the powers they wield against the NRA and its members.

 

The NRA is not financially insolvent. In fact, this move comes at a time when the NRA is in its strongest financial condition in years. 

The Association will continue with the forward advancement of the enterprise – confronting anti-Second Amendment activities, promoting firearms safety and training, and advancing public programs across the United States. No immediate changes are expected to the NRA’s operations or workforce.  

 

The reorganization aims to help the NRA streamline costs and expenses, organize various litigation matters that involve related facts, and realize other financial and strategic advantages.

 

By exiting New York, the NRA abandons a state where elected officials have weaponized legal and regulatory power to penalize the Association and its members purely for political purposes.

 

The Battle in New York

As you will recall, in summer 2018, New York Attorney General candidate Letitia James vowed that, if elected, she would use the powers of her office to investigate the NRA. Without a shred of evidence supporting her claims, James called the Association a “terrorist organization” and a “criminal enterprise.” As promised, she commenced an “investigation” upon being elected to the Office of NYAG and, predictably, filed a lawsuit seeking to dissolve the NRA just prior to the November 2020 national election. 

In response to the anti-freedom actions of the NYAG, the NRA filed a lawsuit in August 2020 against the NYAG similar to its lawsuit against New York Governor Andrew Cuomo and the New York State Department of Financial Services, filed in 2018. The NRA pursues the defendants for attempting to “blacklist” the organization and its financial partners in violation of their First Amendment rights. The NRA will continue those legal actions.  

 

I firmly believe this strategic plan represents a pathway to opportunity, growth and progress. One important part of the plan is reincorporating in a state that values the contributions of the NRA, celebrates our law-abiding members, and joins us as a partner in upholding constitutional freedom. This is a transformational moment in the history of the NRA.

The NRA’s day-to-day business operations will continue uninterrupted. 

 

This proven mechanism is a positive for us, allowing our advisors to pursue strategic advantages for the NRA as our leadership team continues to advance our mission. 

We will continue to promote our Second Amendment advocacy, firearms education and training, and public endeavors. We do not anticipate any measurable impacts to our staffing, public programs or Second Amendment advocacy.

 

We are forming a special committee to study the possibility of relocating key segments of our business operations to Texas or other states.

 

A new committee, under the direction of First Vice President Charles Cotton, will study opportunities for relocating segments of NRA business operations to Texas or other states. We are exploring any option that may work in the best interests of the NRA and its members. 

In the meantime, the NRA’s general business operations will remain in Fairfax.

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I'm afraid TX is a poor choice.  Immigration is going to shift the state blue in the next decade, maybe in the next week if the current administration passes an amnesty/citizenship bill designed to shift the country blue.  UT, OK, WY, MT, or a whole bunch of other states would be more NRA friendly for the long term.   But, Wayne's suit collection won't be as appreciated outside of the big cities.

NRA instructor but not a big fan of the NRA anymore.

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The judge in the NRA's bankruptcy case DISMISSED the case today.

They are now in danger of being dissolved as a NY organization.

Yes, leftists started the attack, but the NRA has only its own leadership to blame for putting it in the position where it is vulnerable to that attack.

 

https://thereload.com/nra-bankruptcy-dismissed/
 

Quote

The National Rifle Association’s plan to counter a New York lawsuit hit a major setback on Tuesday after its bankruptcy case was dismissed.

Federal Judge Harlin Hale ruled the gun group’s attempt to relocate to Texas in response to litigation by New York Attorney General Letitia James (D.) targeting the group could not go through. Judge Hale agreed with James in her argument the NRA, whose leaders repeatedly publicly touted the financial strength of the organization during the case, was not trying to address legitimate financial concerns. Instead, the judge concluded, the group was inappropriately trying to use the bankruptcy court to avoid government oversight.

“The Court agrees with the NYAG that the NRA is using this bankruptcy case to address a regulatory enforcement problem, not a financial one,” he said in the ruling.

The ruling deals a significant blow to the NRA’s legal strategy for dealing with James’ suit over accusations that NRA leaders, including CEO Wayne LaPierre, diverted tens of millions of dollars from the group for personal use over several decades. It likely ends the attempt to move the venue for hearing James’ claims from New York state court to a federal bankruptcy court in Texas. It also makes her effort to completely shut down the group, a political opponent she described as a “terrorist organization” during her campaign for AG, more likely to succeed.

The NRA’s bankruptcy strategy was conceived by CEO Wayne LaPierre and outside counsel Bill Brewer, without input from the NRA’s full board, as a way to protect the group from dissolution by James. But it was considered a long shot by experts from the beginning with many, including Howard University bankruptcy expert Matthew Bruckner, explicitly calling it a “Hail Mary” maneuver. After a drawn-out trial that lasted several weeks beyond its initial schedule, Judge Hale ultimately decided the case was filed in bad faith, and a host of questions about the NRA’s management and controls remained. Judge Hale said the group did not have the needed oversight to prevent or punish impropriety carried out by its executives.

“The mission and function of the NRA is focused on gun safety, and the NRA asserts it is ‘the nation’s foremost defender’ of the Second Amendment of the United States Constitution,” he wrote in his ruling. “In recent years, however, it has become apparent that the NRA was suffering from inadequate governance and internal controls.”

Judge Hale pointed to numerous specific concerns with the NRA’s case.

“There are several aspects of this case that still trouble the Court, including the manner and secrecy in which authority to file the case was obtained in the first place, the related lack of express disclosure of the intended Chapter 11 case to the board of directors and most of the elected officers, the ability of the debtor to pay its debts, and the primary legal problem of the debtor being a state regulatory action,” he said.

LaPierre said the NRA is “disappointed with some aspects of the decision” but will not change the “overall direction” of the group or its programs.

“We remain an independent organization that can chart its own course, even as we remain in New York to confront our adversaries,” he said in a statement. “The NRA will keep fighting, as we’ve done for over 150 years.”

James said the ruling protects the rule of law and prevents the NRA from being able to “dictate if and where it will answer for its actions” and promised to continue her suit against them in New York.

“No one is above the law,” she tweeted. “We sued the NRA to put an end to its fraud and abuse, and now we will continue our work to hold the organization accountable.”

Hale left open the possibility that the NRA could refile the case again in the future but said the group risked having a court-appointed official take over its operations if it did not correct the remaining problems he identified.

“Should the NRA file a new bankruptcy case, this Court would immediately take up some of its concerns about disclosure, transparency, secrecy, conflicts of interest of officers and litigation counsel, and the unusual involvement of litigation counsel in the affairs of the NRA, which could cause the appointment of a trustee out of a concern that the NRA could not fulfill the fiduciary duty required by the Bankruptcy Code for a debtor in possession,” he said.

UPDATE (5/11/2021 at 5:06 pm): This story was updated to include further details from Judge Hale’s ruling and comments from Attorney General Letitia James and NRA CEO Wayne LaPierre.

From Page 34 of the decision:
 

Quote

...What concerns the Court most though is the surreptitious manner in which Mr. LaPierre
obtained and exercised authority to file bankruptcy for the NRA. Excluding so many people from
the process of deciding to file for bankruptcy, including the vast majority of the board of directors,
the chief financial officer, and the general counsel, is nothing less than shocking. ...


 

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5 hours ago, DirtyDigz said:

The judge in the NRA's bankruptcy case DISMISSED the case today.

They are now in danger of being dissolved as a NY organization.

Yes, leftists started the attack, but the NRA has only its own leadership to blame for putting it in the position where it is vulnerable to that attack.

 

https://thereload.com/nra-bankruptcy-dismissed/
 

From Page 34 of the decision:
 


 

The transcript from the trial back in April show LaPierre to be a buffoon. Their gross misuse of funds is comical.
 

https://storage.courtlistener.com/recap/gov.uscourts.txnb.490758/gov.uscourts.txnb.490758.468.2.pdf
 

LaPierre has overstayed his role for too long. The NRA is long overdue for a housecleaning. 

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NRA has their press release out:

 

Quote

In response to today’s dismissal of a prior bankruptcy filing, the National Rifle Association of America (“NRA”) announced that it will continue to fight on all fronts in the interests of its mission and its members.

The New York Attorney General and others had aligned against the NRA in opposition to the NRA’s reorganization plan announced on January 15, 2021. They sought to dismiss the NRA’s bankruptcy filing with prejudice or, in the alternative, appointment of a court-appointed trustee, to take control of the Association’s business and financial affairs. Importantly, a United States Bankruptcy Court in Dallas did not appoint a Trustee or examiner, even as it ruled the Association may not proceed with the chapter 11 case. The court dismissed the bankruptcy filing without prejudice, meaning the NRA does have the option to file a new bankruptcy case.

During a 12-day hearing that occurred over approximately four weeks, the NRA established that it had adopted new policies and accounting controls, displaced many “insiders” who had allegedly abused the Association, and accepted reparations for costs voluntarily determined to be excess benefits. The hearing proceedings focused on the NRA’s compliance efforts, and the organization’s renewed commitment to good governance.

In an opinion, dated May 11, 2021, the Hon. Harlin D. Hale, U.S. Bankruptcy Judge, Northern District of Texas, wrote, “In short, the testimony…suggests that the NRA now understands the importance of compliance. Outside of bankruptcy, the NRA can pay its creditors, continue to fulfill its mission, continue to improve its governance and internal controls, contest dissolution in the NYAG Enforcement Action, and pursue the legal steps necessary to leave New York.”

Underscoring the importance of the proceedings, Judge Hale previously said the NYAG motion contesting the NRA’s Chapter 11 filing was “the most important motion I’ve ever heard as a judge.”

The NRA remains determined to further streamline its legal and business affairs in the best interests of its constituents and members.

NRA CEO & EVP Wayne LaPierre said today’s decision – and the ongoing independence of the NRA – empowers the Association’s approximately 5 million members.

“The NRA remains committed to its members and our plan for the future,” says NRA CEO & EVP Wayne LaPierre. “Although we are disappointed in some aspects of the decision, there is no change in the overall direction of our Association, its programs, or its Second Amendment advocacy. Today is ultimately about our members – those who stand courageously with the NRA in defense of constitutional freedom. We remain an independent organization that can chart its own course, even as we remain in New York to confront our adversaries. The NRA will keep fighting, as we’ve done for 150 years.”

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 will continue to defend the interests of the Association in New York,” says William A. Brewer III, counsel to the NRA. “Our client has faith in its leadership, and its demonstrated commitment to good governance.”

“The record reflects the NRA undertook a ‘course correction’ with respect to its management,” says NRA President Carolyn Meadows. “The Association is strong and secure – once again moving forward above the objections of its adversaries and those who oppose Second Amendment freedoms.”

The NRA can still pursue establishing business operations in Texas, and the organization will continue to explore moving its headquarters there from Virginia. Texas is home to more than 400,000 NRA members.

The bankruptcy hearing became the nation’s highest-profile legal proceeding of its kind. The virtual proceedings, involving more than 20 witnesses, explored novel issues that define the roles and responsibilities of legal defendants subjected to the threat of dissolution. 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 legal proceedings revealed the NRA’s commitment to good governance and efforts to follow the “principled path” with respect to its management practices, board oversight, and member obligations under Mr. LaPierre’s leadership. Mr. LaPierre remains at the helm of the organization, directing political affairs, grassroots activities and other functions essential to the defense of the Second Amendment.

“The record establishes that NRA members can have great confidence in this institution and its plans for the future,” says NRA First Vice President Charles Cotton. “The Association will work with members, vendors, and other constituents to continue the fight for freedom.”

“Our NRA is pressing forward with its plans, and remains determined to promote constitutional freedoms,” says NRA Second Vice President Lt. Col. Willes K. Lee, USA (Ret). “We will never shrink from the tough and principled stands we take on behalf of our law-abiding 5 million members.”

~NRA~

About the National Rifle Association
Established in 1871, the National Rifle Association is America’s oldest civil rights and sportsmen’s group. More than five million members strong, NRA continues its mission to uphold Second Amendment rights and is the leader in firearm education and training for law-abiding gun owners, law enforcement and the military. Visit http://nra.org.

 

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The NRA states that the existing laws should be enforced.  That includes how you run accounting and spending in a nonprofit.  Any other organization the board would fire senior management, audit internally, and bring everything into compliance.

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Just got the American Rifleman in the mail with the 2021 ballot for voting for NRA members.

Does anyone have any idea who to vote for or write in, in order to start cleaning house?

Or are we all just going to vote in the same group of directors, again?  Doesn't seem right.

 

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https://onlygunsandmoney.com/2021/06/08/nra-ballots-are-arriving.html

 

Quote

...

There is one person on the ballot who should not get your vote. That is Carolyn Meadows. She has served as an enabler to both Wayne LaPierre and William Brewer and that is unforgiveable. As part of the Special Litigation Committee, she helped pave the way for the NRA to waste another $10 million on their abortive attempt at getting out of New York by way of bankruptcy. If only half of that money had been used in the Georgia US Senate run-off elections, perhaps there would not be a Senator Warnock (D-GA) nor a Senator Ossoff (D-GA). This would have been the bulwark needed to stop Joe Biden and his cronies plans to eviscerate the Second Amendment and our God-given rights to self-defense.

I will be voting for Buz Mills directly and for Frank Tait and Rocky Marshall by write-in. No one else will be getting my vote.

 

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14 hours ago, Tunaman said:

Dont vote for anyone except Scott Bach and Anthony Colandro.  They can make a difference in NJ.

Will Scott Bach and Anthony Colandro re-up Wayne LaPierre for another term in charge of the NRA, even though under his watch he brought the NRA to an existential crisis that is still not resolved with the NY authorities (running a nonprofit is not hard but you need to follow the rules), and also put the NRA into a failed bankruptcy filing without even asking the board for approval (is that double or triple failure)?  Or will they at least diplomatically put LaPierre to retirement and put someone else in charge to clean things up?

Seems to me if anyone wants to run to be director of the NRA in 2021, that is the question they need to answer to the members.

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9 minutes ago, kman said:

Thanks for that link.

You're welcome.  That blogger posted a followup:

https://onlygunsandmoney.com/2021/06/10/my-nra-board-election-ballot.html

Quote

... In normal times, I might have supported a few more on this ballot. However, these are not normal times when it comes to the National Rifle Association. It is being sued for dissolution by the Attorney General of New York, it has wasted millions of dollars on needless litigation, it is has a mostly complacent board who has no concept of their fiduciary duties, it has a CEO who looks at the organization as his personal piggybank, and the list goes on. Its most egregious sin in my opinion is that the grifters have lost sight of who they serve. The consequence of that is to put my civil rights and yours at risk which is unforgiveable. ...

 

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11 hours ago, kman said:

Will Scott Bach and Anthony Colandro re-up Wayne LaPierre for another term in charge of the NRA, even though under his watch he brought the NRA to an existential crisis that is still not resolved with the NY authorities (running a nonprofit is not hard but you need to follow the rules), and also put the NRA into a failed bankruptcy filing without even asking the board for approval (is that double or triple failure)?  Or will they at least diplomatically put LaPierre to retirement and put someone else in charge to clean things up?

Seems to me if anyone wants to run to be director of the NRA in 2021, that is the question they need to answer to the members.

If there is change to be made, vote for someone different. 

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41 minutes ago, kman said:

Here's a more detailed writeup

https://firearmscoalition.org/nra-elections-2/

So Scott Bach is on his dump list. Anyone know anything about the author Jeff Knox?

And I guess I'd like to hear Ant's responses to the questions in that article.

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2 hours ago, 45Doll said:

Anyone know anything about the author Jeff Knox?

Not a whole lot but as a former long time subscriber to ShotGunNews I remembered Neil Knox. After a quick search apparently he took over for Neil, didn’t see enough info to tell if they are related. ShotGunNews is gone and renamed to FireArmsNews. I don’t get FireArmNews but saved a few old ShotgunNews mags and scanned this one from 2015 for you and the post    

Jeff’s profile --->  https://www.linkedin.com/in/jeffknox

 

 

knox.JPG

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30 minutes ago, FXDX said:

Not a whole lot but as a former long time subscriber to ShotGunNews I remembered Neil Knox. After a quick search apparently he took over for Neil, didn’t see enough info to tell if they are related. ShotGunNews is gone and renamed to FireArmsNews. I don’t get FireArmNews but saved a few old ShotgunNews mags and scanned this one from 2015 for you and the post    

Jeff’s profile --->  https://www.linkedin.com/in/jeffknox

 

 

knox.JPG

There's a father/son reference in your link.

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Scott Bach seems like a good man, but it goes again back to the question - is the NRA going to clean its house, or isn't it?

Why is LaPierre still in charge after all of the problems that seem to originate under his watch?

Is there no one else who can do better?  How can that possibly be true?

 

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25 minutes ago, FXDX said:

yes I see "My father wrote the column for years" now figured as much but missed it at first. :icon_redface:

Thanks anyway. That though occurred to me, but I didn't have time to research it.

Let's see if Ant has two cents.

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20 hours ago, kman said:

Looks like a Blaser-sponsored safari.

My suspicions are forever confirmed. Wayne LaPierre can never hold a candle to Selby, Capstick or Ruark. What a putz. 

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3 hours ago, kman said:

https://nraindanger.wordpress.com/2021/08/17/attorney-general-files-amended-complaint/

This goes so beyond a few designer Italian suits for Wayne LaPierre.  It is mind boggling.

No compliance officer? Stupidity or arrogance? 
 

Unless they right the ship and throw these bums out, they stand to lose everything. 
 

Seems the REAL NRA story and exciting announcement went south fast over the course of a few months. 

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LaPierre's gotta go.   Maybe to prison, but certainly out of the NRA.   Some serious housekeeping is in order, even if many of the claims in the amended complaint are overblown.  Yes, I recognize the NY AG is politically motivated to hurt the NRA any way she can, but damn, NRA leadership has been giving her too much actionable material for far too long.

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"On April 28, 2019, the Committee retroactively approved approximately $326,000 in grants from the NRA to the New Jersey Rifle and Pistol Clubs, Inc. over a fourteen- year period. The president of the New Jersey Rifle and Pistol Clubs, Inc. is a board member of the NRA. At the same meeting, the Committee also prospectively approved new transactions between the New Jersey Rifle and Pistol Clubs, Inc. and the NRA. "

Not sure if this is good or bad.....

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