>>> 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