US: NRA files for bankruptcy, New York AG says won't allow it to evade accountability

The National Rifle Association (NRA) on Friday said it would seek bankruptcy protection in federal court and also reincorporate itself as a non-profit organisation in Texas. This comes amid the scrutiny of the pro-gun group in New York by State Attorney General Letitia James, who has accused the top officials of NRA of misusing funds and donations for personal gains. The NRA, which was founded in New York in 1871, has filed petitions seeking protections against bankruptcy in a Dallas court under Chapter 11 of the Bankruptcy Code. 

"The NRA’s claimed financial status has finally met its moral status: bankrupt. While we review this filing, we will not allow the NRA to use this or any other tactic to evade accountability and my office’s oversight," Letitia James said in a statement after NRA filed for bankruptcy on Friday.

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'NRA went unchecked for decades'

Letitia James had filed a petition in August last year seeking to dissolve NRA, accusing the group's top officials of misusing donations and funds for personal benefit. The suit was filed against the NRA as a whole, Executive Vice-President Wayne LaPierre, as well as former Treasurer and Chief Financial Officer Wilson “Woody” Phillips, former Chief of Staff and the Executive Director of General Operations Joshua Powell, and Corporate Secretary and General Counsel John Frazer.

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James accused LaPierre and three others of diverting millions of dollars in funds from the group's charitable missing for personal use. James also accused the officials of awarding contracts to close associates and family for financial gain and also providing lucrative deals to former employees in order to buy their silence. "The NRA’s influence has been so powerful that the organization went unchecked for decades while top executives funneled millions into their own pockets," said Attorney General James.

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NRA is an influential group that lobbies against gun-control laws in Washington DC. It came under the scanner after several incidents involving automatic rifles and other weapons occurred across the United States, killing hundreds of Americans. Politicians, especially Democrats, started to question the NRA's role in lobbying for laws that made guns easily available for anyone to buy in the country.

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