Pass the Popcorn

The  Executive Office for United States Trustees, a division of the Department of Justice tasked with overseeing bankruptcy proceedings in the United States, just unleashed a huge can of whup-ass on Wayne LaPierre and the NRA.

It isn’t often that you hear terms like, “Failed to provide the proper oversight,” “Personal expenses were made to look like business expenses,” and that their regulatory issues with the New York AG are, “Not a legitimate reason for filing bankruptcy.”

It’s extremely rare for the trustee to say things like this, or to call for a bankruptcy to be halted, or to call for appointing a trustee.

The NRA is in a world of hurt, and if there is any justice in this world, Wayne LaPierre will end up sharing a cell with Matt Gaetz and Roger Stone.

The National Rifle Association’s hopes of end-running a legal challenge in New York were dealt a serious blow on Monday when a Justice Department official rebuked its leadership and called for the dismissal of its bankruptcy filing or the appointment of an outside monitor to oversee its finances.

Lisa L. Lambert, a lawyer in the United States Trustee’s office, which is part of the Justice Department, said the “evidentiary record clearly and convincingly establishes” that Wayne LaPierre, the longtime N.R.A. chief executive, “has failed to provide the proper oversight.” For a number of years, she added, “the record is unrefuted that Wayne LaPierre’s personal expenses were made to look like business expenses.”

Mr. LaPierre and the N.R.A. had filed for bankruptcy not because of any financial distress, but as a strategy to avoid litigation in New York, where the attorney general, Letitia James, is seeking to shut down the organization and claw back millions of dollars in allegedly misspent funds from Mr. LaPierre and three other current or former executives.

………

“The N.R.A. is in real trouble,” said Adam J. Levitin, a professor specializing in bankruptcy at Georgetown University. “The U.S. Trustee rarely gets involved in this sort of motion, much less urges dismissal, a trustee or an examiner. I cannot see an outcome where the N.R.A. comes out unscathed. I think the real issue is what remedy the judge grants.” 

John Pottow, who teaches bankruptcy at the University of Michigan Law School, called the trustee’s intervention “a glaring signal of profound dysfunction” at the N.R.A., adding that such an intervention by the trustee “doesn’t happen very often.”

“The N.R.A. has stated that it is seeking refuge from the New York attorney general’s actions and wishes to change its state of incorporation,” she added. “That can be done outside of bankruptcy. It is not a legitimate reason for filing bankruptcy.”

Shut them down, take their domain names, and take their mailing and donor lists.

Don’t allow LaPierre to resurrect his scam under a different name.

The ammosexuals community will doubtless find another outlet for their political priorities, after all, they have won the war against common sense gun laws for a generation, but at least that new organization won’t rob them blind.

Leave a Reply