Schumer: NRA files for bankruptcy but funds lobbying against gun reform

Senate Majority Leader Chuck Schumer called Sunday for the U.S. Department of Justice to investigate the National Rifle Association for committing "bankruptcy fraud."

Schumer said the powerful gun lobby sought to escape from the New York Attorney General's enforcement of state and federal laws by filing for bankruptcy and seeking a move to Texas.

Despite the bankruptcy filing, dismissed by a judge earlier this year in Texas, Schumer said Sunday, the organization continues to spend "millions" on a lobbying campaign against "common sense gun reforms," including legislation creating universal background checks and better gun tracing measures.

Schumer, speaking in the lobby of his Manhattan office, said the NRA "told the judicial branch of government that they are bankrupt...and at the same time...they're spending millions of dollars in ads to stop universal background checks. That demands an investigation by the Justice Department."

He continued: "What blatant hypocrisy."

The NRA and Department of Justice did not respond to requests for comment on Sunday.

In August, New York State Attorney General Letitia James filed a lawsuit against the NRA, seeking to dissolve it.

James, a Democrat, accused longtime NRA leader Wayne Robert LaPierre and other executives of using the group as their "personal piggy bank" for gifts, trips and other personal expenses.

The NRA filed its own lawsuit against James' office and in January, filed for Chapter 11 bankruptcy protection. In May, U.S. Bankruptcy Judge Harlin Hale of Dallas dismissed the bankruptcy case, ruling the NRA had not filed its bankruptcy petition "in good faith" but rather "to avoid a state regulatory scheme."

The suit filed by the New York attorney general also alleged the NRA and its executives failed to comply with state, federal, and NRA laws; failed to manage NRA funds; and contributed to more than $64 million in losses in three years.

By Scott Eidler

scott.eidler@newsday.com@ScottEidler

Scott Eidler covers Nassau County government and politics for Newsday. Scott has worked at Newsday since 2012 and previously covered municipal government and education.