NRA leadership on trial in high-stakes bankruptcy hearings
The National Rifle Association rolled the dice by seeking Chapter 11 protection earlier this year, betting it could use the power of U.S. bankruptcy law to shore up litigation and fight allegations of fraud and mismanagement made. by the New York Attorney General.
The gun rights group is about to find out how well this bet is going. A federal bankruptcy judge in Dallas has scheduled six days of virtual hearings starting Monday that are likely to determine the course of the bankruptcy and, potentially, of the NRA itself.
Among those whose fate is at stake is Wayne LaPierre, the chief executive who led the nonprofit group for three decades and became the public face of one of the most powerful rights organizations in the states- United.
Mr LaPierre and other senior NRA officials are set to testify in public for the first time to allegations of spending abuse within the group. The New York attorney general is expected to call other witnesses, possibly including Mr LaPierre’s longtime travel consultant, who arranged NRA-funded private jet flights for him and his relatives, and has filed for a deposition last week.
“The legal issues here have nothing to do with the Second Amendment – the NRA could sell shoes,” noted Adam Levitin, professor of bankruptcy law at Georgetown University. “The question is whether a large charity has been looted by its leaders.”