The Justice Department opposes the National Rifle Association’s bankruptcy plan

The U.S. Department of Justice opposes the National Rifle Association’s bankruptcy plan, pointing out that what the agency is saying is a mismanagement of funds by leaders of gun advocacy groups.

Lisa Lambert, an assistant U.S. trustee at the Justice Department’s trustee office, said Wayne LaPierre, longtime CEO of the group, funded the NRA in the NRA bankruptcy case in Texas on Monday. Said that it could not properly protect the group’s financial records.

“The record that Wayne LaPierre’s personal expenses looked like project costs has not been refuted,” she said in a hearing at the US Bankruptcy Court in northern Texas.

Lambert either dismisses the proceedings or an outside investigator (examiner) to ask the judge overseeing the NRA proceedings to suspend the proceedings and assess whether the organization has a valid reason to declare bankruptcy. Is called).

According to The New York Times, NRA lawyer Greg Garman disagreed with Lambert’s comment in court on Monday. “Your honor, we have natural enemies,” Garman said. “This Department of Justice may not be looking at the National Rifle Association, but we still did the right thing.”

Escape from New York

January Nuclear Regulatory Commission Chapter 11 Submitted for protection, Declares its intention to relocate the Group’s headquarters from New York to Texas.

In New York, NRA faces a proceeding from Attorney General Letitia James.. She accused four executives of mismanagement of funds and violating state and federal law, causing the organization to lose more than $ 64 million in three years.Senior leaders spend NRA money Trip to the Bahamas, Private jets, luxury hotels, fine restaurants, James claims.

Lapierre denied James’ allegations and called the proceedings “an unfounded and deliberate attack on our organization.”

The move by the bankruptcy judge, who presides over the NRA proceedings, to appoint an examiner could hinder plans to relocate NRA’s headquarters to Texas, experts said. The court will make a decision next week. On Monday, the NRA submitted a restructuring plan that would keep LaPierre as CEO and present the organization’s plans for repayment to creditors.

Probably an examiner

The US Fiduciary Program represents the Justice Department in bankruptcy cases. Bankruptcy expert Stephen Brown, a law professor at the University of Buffalo, said it was not uncommon for trustees to seek dismissal in small cases. However, requests for dismissal in high-profile cases are less common.

“US trustees don’t submit these often, so when they do, it will receive some notice, including the bankruptcy judge,” he said.

Gregory Germain, a bankruptcy expert and law professor at Syracuse University, said the judge overseeing the case is likely to appoint an examiner to consider whether the NRA has applied for Chapter 11. Said.

“That’s the safest thing for a bankruptcy court,” Germain said. “But things will be slow because everyone is waiting for the examiner’s report.”

The Justice Department opposes the National Rifle Association’s bankruptcy plan

Source link The Justice Department opposes the National Rifle Association’s bankruptcy plan

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