NRA Fights To Declare Bankruptcy As NY AG Lawsuit Threatens To Dissolve Organization | Rachel Maddow

>>> THERE WAS THE $39,000 >>> THERE WAS THE $39,000 SHOPPING SPREE ON REALLY NICE SUITS. THERE WAS THE $200,000 SPENT ON PRIVATE JET VACATIONS. THERE WAS A STAY ON A 108-FOOT YACHT THAT CAME WITH A PRIVATE CHEF, AND A JET BOAT AND A COUPLE OF JET SKIS. ACTUALLY, A COUPLE OF NICE STAYS ON THAT YACHT. TENS OF THOUSANDS OF DOLLARS SPENT ON HAIR AND MAKEUP FOR THE CEOS WIFE. ALL THINGS THAT WERE PAID FOR BY THE UNWITTING MEMBERS OF A NONPROFIT ORGANIZATION, MEMBER WHO IS APPARENTLY HAD NO IDEA THAT THATS THE KIND OF STUFF THEIR MEMBERSHIP DUES WERE BEING SPENT ON. LAST YEAR, THE ATTORNEY GENERAL IN THE STATE OF NEW YORK, LETITIA JAMES PSEUDOTHE NATIONAL RIFLE ASSOCIATION BECAUSE THE NRA IS TECHNICALLY A NONPROFIT, CHARTERED TO OPERATE WITHIN HER JURISDICTION IN THE STATE OF NEW YORK. THESE SPENDING DETAILS, THE JETS AND HAIR AND MAKEUP AND VACATIONS -- SHE CHARGES IN HER SUIT THE PEOPLE IN CHARGE OF THE NRA USED THE MONEY IT COLLECTED AS A PRIVATE PIGGY BANK FOR PERSONAL TRAVEL. ITS ONE THING TO LIVE LIKE THAT ON YOUR OWN DIME TO PAY FOR PRIVATE JETS AND SAFARIS AND STUFF, BUT IF YOURE SPENDING THE MONEY OF A NONPROFIT ON THAT IT MAY WELL BE FRAUDULENT AND ILLEGAL. SO THE ATTORNEY GENERAL OF NEW YORK SUED TO DISSOLVE THE ENTIRE ORGANIZATION, SHE SUED TO DISSOLVE THE NRA FOR ITS LEADERS FINANCIAL MISCONDUCT. THEY CALLED THE LAWSUIT BASELESS, BUT THEY ALSO REACTED TO IT IN SOME UNEXPECTED WAYS. GIVEN THE NATURE OF THE ALLEGATIONS, THE LAVISH SPENDING ALLEGATIONS, IT WAS WEIRD THAT IN THE IMMEDIATE WAKE OF THIS LAWSUIT BROUGHT BY JAMES, THE NRA FILED FOR BANKRUPTCY. THATS A WEIRD THING TO DO WHEN YOU APPARENTLY HAVE 39 THOUSAND THOUSAND DOLLARS TO SPEND ON SUITS FOR YOUR COMPANYS EXECUTIVES. ON THE SAME DAY THEY FILED FOR BANKRUPTCY, IT GOT EVEN WEIRDER. THEY TOLD THEM THEIR BANKRUPTCY WAS COMING AT A TIME WHEN THE NRA IS IN ITS STRONGEST FINANCIAL CONDITION IN YEARS. AGAIN, THATS A WEIRD THING TO SAY ON THE SAME DAY YOUVE OFFICIALLY DECLARED BANKRUPTCY IN A COURT OF LAW. WHY ARE YOU TELLING A COURT YOURE TOTALLY OUT OF MONEY WHILE AT THE SAME TIMEU TELLING YOUR SUPPORTERS, WE HAVE NEVER BEEN RICHER? BUT THE NRA ASKED THE COURT TO PLEASE ALLOW THEM TO DECLARE BANKRUPTCY. THEY SAID THEIR INTENTION WAS TO REINCORPORATE THE NRA AS A NEW ENTITY, NOT IN THE STATE OF NEW YORK BUT IN TEXAS, FAR AWAY FROM TISH JAMES IN NEW YORK. ALL THAT -- THE BANKRUPTCY APPLICATION WAS NOT ABOUT THE ORGANIZATION GOING BANKRUPT AT ALL, BUT INSTEAD MAY HAVE BEEN DEVISED AS A WAY TO DODGE THE LAWSUIT, TO DODGE ACCOUNTABILITY IF THE NEW YORK ATTORNEY GENERAL WHO WAS TRYING AFTER ALL TO DISSOLVE THEIR ENTIRE ORGANIZATION. ONE NEAT TRICK WHEN YOU FILE FOR BANKRUPTCY IS IT PUTS A PAUSE ON ONGOING LITIGATION AGAINST YOU. THAT MAY HAVE BEEN WHAT THE NRA WAS BANKING ON HERE. AT A MINIMUM IT WOULD DELAY TISH JAMES LAWSUIT AGAINST THEM. THE "THE WALL STREET JOURNAL" NOTED THEY FEEL FOR BANKRUPTCY TO SLOW WALK LITIGATION. WE DONT KNOW FOR SURE THATS WHAT THE NRA WAS DOING, BUT IF THAT IS WHAT THE NRA WAS DOING, AND IF A THETY GET CAUGHT FOR TRYING TO DO THAT HERE, THAT COULD GET THEM IN EVEN MORE TROUBLE. THE JUDGE THATS DECIDING WHETHER OR NOT THE NRA WILL BE ALLOWED TO DECLARE BANKRUPTCY, THEY HAVE APPOINTED A TRUSTEE, PUTTING IN AN OVERSEER, AN OUTSIDER TO INVESTIGATE THE FINANCIAL FRAUD ALLEGATIONS LAID OUT BY TISH JAMES AND MAKE ALL FINANCIAL DECISIONS GOING FORWARD FOR THE NRA. THE JUDGE ALSO HAS THE OPTION OP JUST SAYING NO -- DISMISSING THE BANKRUPTCY APPLICATION BY THE NRA AND THAT OF COURSE WOULD CLEAR THE WAY FOR TISH JAMES TO CONTINUE HER LITIGATION, WHICH, AGAIN, SEEKS TO DISSOLVE THE ORGANIZATION. THE NRAS BANKRUPTCY TRIAL STARTED THIS WEEK IN FEDERAL BANKRUPTCY COURT IN TEXAS. THE ENTIRE TRIAL IS EXPECTED TO LAST ABOUT A WEEK. SEVERAL TOP NRA OFFICIALS ARE EXPECTED TO TESTIFY ABOUT THE ALLEGED SPENDING ABUSES FOR THE FIRST TIME EVER, INCLUDING THE CEO, WAYNE LA PIERRE, THE MAN WHO ALLEGEDLY SPENT THAT MONEY ON SUITS AND MAKEUP FOR HIS WIFE AND GOT THE STAYS ON THE YACHT. HE WAS ASKED ABOUT THE STAYS ON THE YACHT TODAY. HE ASKED WHY HE NEEDED TO STAY ON THAT YACHT AS PART OF OFFICIAL NRA BUSINESS, WHY HE ACCEPTED THAT STAY ON A YACHT FROM A YACHT OWNER WHO WAS GETTING MULTIMILLION DOLLAR CONTRACTS FROM THE NRA AT THE SAME TIME. HE SAID HE WENT AND STAYED ON THE YACHT AFTER THE SANDY HOOK SHOOTING. HE SAID HE THOUGHT HIS OWN LIFE WAS IN DANGER AS THE HEAD OF THE NRA, SO HE FLED TO THE YACHT FOR SAFETY. HE SAID THE YACHT WAS, QUOTE, THE ONE PLACE THAT I HOPED I LETTER. >> SHANNON WATTS, APPRECIATE BEING ABLE TO TALK TO YOU ABOUT THIS TONIGHT. >> THANK YOU. >>> AS I MENTIONED THE NRA BANKRUPTCY TRIAL IS IN FEDERAL BANKRUPTCY COURT IN TEXAS. THE NRA OFFICIALS WHO ARE HAVING TO TESTIFY AT THAT TRIAL, ITS THE FIRST TIME ANY OF HAD TO TESTIFY UNDER OATH AND HAD TO ANSWER PUBLICLY FOR THE WAYS THEY ALLEGEDLY RIPPED OFF THEIR MEMBER TO THE TUNE OF HUNDREDS OF MILLIONS OF DOLLARS. THIS IS ONE OF THOSE STORIES -- I FEEL LIKE LAWSUITS AND LEGAL CASES GET COVERED PRETTY WELL IN THIS COUNTRY. I DONT KNOW IF ITS BECAUSE

Channel: MSNBC

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Keywords: Guns, NRA, Money in Politics, Best of last night, Wayne LaPierre, The Rachel Maddow Show, Rachel Maddow, Rachel Maddow Show, Maddow, TRMS, MSNBC, MSNBC news, MSNBC live, MSNBC TV, news, breaking news, current events, US news, politics, politics news, political news, elections, maddow live, rachel maddow msnbc, best of rachel maddow, Dissolve Organization, NRA's peculiar effort, General Letitia James, NRA's very existence, Lawsuit Threatens, New York Attorney, Bankrupt, Lawsuit

Id: -J5XDbnW5dc

Length: 6min 47sec (407 seconds)

Published: Tue Apr 06 2021