U.S. trustee opposes NRA bankruptcy petition in blow to gun rights group

A U.S. bankruptcy administrator asked a federal judge Monday to dismiss the National Rifle Association’s efforts to declare bankruptcy or appoint a trustee or examiner to oversee the gun rights organization — a setback for the group at the close of a federal court hearing to consider its petition. The recommendation bolstered the arguments of New York Attorney General Letitia James (D), whose office has fought the NRA’s attempts to relocate from New York to Texas, and came after senior NRA executives acknowledged in court testimony that they received lavish perks. Linda Lambert, a lawyer with the U.S. trustee’s office — which participates in bankruptcy cases to protect taxpayer interests and enforce bankruptcy laws — told the court that the evidence presented in the hearing showed that the nonprofit organization lacked proper oversight and that personal expenses were masked as business costs. Adam Levitin, a bankruptcy expert at the Georgetown University Law Center, said the position of the trustee — a Justice Department official who typically remains neutral in a bankruptcy proceeding — does not bode well for the NRA. “I don’t see how the NRA pulls off a win here,” he said, adding: “I think it’s pretty clear that the NRA loses. The real question is what the remedy will be.” In court Monday, NRA lawyer Greg Garman expressed disappointment in Lambert’s comments, saying: “We have natural enemies. This Department of Justice may not see eye to eye with the National Rifle Association, but so be it, we […]

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