Schumer wants NRA investigated for bankruptcy fraud

NEW YORK (AP) — Senate Majority Leader Chuck Schumer on Sunday called on the Justice Department to investigate the National Rifle Association for bankruptcy fraud, saying the financially stable gun-rights group abused the system when it sought bankruptcy protection in the wake of a New York lawsuit seeking to put it out of business.

A judge rejected the NRA's bankruptcy case in May, ruling the non-profit organization had not acted in good faith. NRA leaders made clear that the organization was “in its strongest financial condition in years” and was seeking bankruptcy protection so it could changes its state of incorporation from New York to gun-friendly Texas.

Schumer, D-N.Y., said the NRA's continued heavy spending on advertising criticizing proposed gun control measures and the nomination of gun control lobbyist David Chipman to run the Bureau of Alcohol, Tobacco Firearms and Explosives is further evidence that its bankruptcy filing was inspired by legal, not financial, concerns.

“They recently told the judicial branch of government that they are bankrupt after the lawsuit by Tish James, and at the same time they’re saying they’re bankrupt, they’re spending millions of dollars on ads to stop universal background checks,” Schumer said. “That demands an investigation by the Justice Department.”

The NRA said it was working on a statement. The Justice Department didn't immediately comment on Schumer's request.

The organization filed for bankruptcy protection in January, months after New York Attorney General Letitia James sued the NRA, seeking its dissolution over claims that top executives illegally diverted tens of millions of dollars for lavish personal trips, no-show contracts for associates and other questionable expenditures. That lawsuit is ongoing.

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