National Rifle Association faces fraud charge while in bankruptcy

Jan 26 2021

If you’ve been following the news, you may have seen that the National Rifle Association is facing fraud charges. The lawsuit against the NRA is seeking to dissolve the organization if it is found to be true.

The NRA immediately requested that the lawsuit be dismissed, but a judge in New York denied that request and dismissed the lawsuit. Although the NRA is currently involved in a bankruptcy that would normally place litigation from creditors on hold, the judge determined that this was a state court matter and would be heard.

Why is the National Rifle Association facing a lawsuit?

The NRA is accused of committing fraud against donors. It is claimed that the organization took charitable donations that were intended for the organization and diverted them to the executives. This, if true, is a violation of nonprofit laws.

At this point, the NRA has claimed that the lawsuit is baseless and an attack on the Second Amendment. The organization moved to have the case dismissed, but only due to a technicality. That request was not successful. Therefore, the fraud case will be heard, though it is not expected to be heard until 2022.

If your company violates the law, you could face fraud claims

This story is a good example of how your actions could negatively impact your company and lead to criminal charges. If you reroute funds in a way that is not within the law or you commit fraud against donors to a campaign, you could end up facing serious state or federal charges. If you are accused of fraud, understand that you do need a strong defense, so you can defend yourself.

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