Schumer wants NRA investigated for bankruptcy fraud



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New York (AP) – U.S. Senate Majority Leader Chuck Schumer on Sunday called on the Justice Department to investigate the National Rifle Association for bankruptcy fraud, saying the human rights group Financially stable guns had abused the system when he filed for bankruptcy protection following a lawsuit in New York City to bankrupt it.

A judge dismissed the NRA’s bankruptcy case in May, ruling that the nonprofit had not acted in good faith. NRA leaders have made it clear that the organization is “in its strongest financial position in years” and seeks bankruptcy protection so that it can change its state of incorporation from New York to Texas, favorable. to firearms.

Schumer, a Democrat from New York, said the NRA’s heavy advertising spending criticizing proposed gun control measures and the appointment of gun control lobbyist David Chipman to head the Bureau of Alcohol, Tobacco Firearms and Explosives are further proof that his bankruptcy filing was inspired by legal and non-financial concerns.

“They recently told the judicial branch of government that they were bankrupt after Tish James’ trial, and at the same time they say they are bankrupt, they are spending millions of dollars on advertising to stop universal checks. background, ”Schumer said, referring to New York Attorney General Letitia James. “This requires an investigation by the Department of Justice. “

The Justice Department declined to comment.

Late Sunday, NRA attorney William A. Brewer III accused Schumer of “promoting a false story.”

“The NRA pursued a financial reorganization for one reason: to streamline its financial and legal affairs. The truth is, the proceedings in question confirmed what the Association disclosed upfront – the NRA is financially solvent, and the Texas filing was part of its long-term plans to effectively serve its members, ”Brewer said. in a press release. “While the bankruptcy court did not believe the filing was for an appropriate bankruptcy purpose, in particular it did not find that the NRA acted in bad faith. “

The organization filed for bankruptcy in January, months after James sued the NRA, seeking its disbandment over allegations that senior executives illegally embezzled tens of millions of dollars for lavish personal travel, no-show contracts for associates and other questionable expenses. This trial is ongoing.

Dismissing the NRA bankruptcy case, Judge Harlin Hale wrote that it looked “less like a traditional bankruptcy case in which a debtor faces financial hardship or a judgment he cannot meet. and more to cases in which the courts have declared bankruptcy has been filed with obtaining an unfair advantage in litigation or to avoid a regulatory scheme. ”



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