“The NRA is successfully beating back any regulatory challenges to its business practices.”

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Myth

“The NRA is successfully beating back any regulatory challenges to its business practices.”

Fact

It’s hard to keep track of the NRA’s regulatory setbacks in recent years. The NRA was sued by the New York Department of Financial Services 330 for operating as an insurance producer without a license, including soliciting its Carry Guard insurance product (a form of “murder insurance”). This lawsuit was preceded by an investigation and legal analysis of NRA Carry Guard by the Everytown for Gun Safety Support Fund and Mom’s Demand Action, which was shared with law enforcement and regulators in New York. The NRA ultimately settled the case, paying a $2.5 million fine and agreeing to stop offering the insurance.1Jeff Mordock, “NRA to Pay $2.5M fine, halt insurance sales to settle New York case,” Washington Times, November 18, 2020, https://www.washingtontimes.com/news/2020/nov/18/nra-pay-25m-fine-halt-insurance-sales-new-york/. 

The NRA has revealed in federal tax filings that several executives received excess benefit transactions, including private jet travel, that previously had not been disclosed.2Sonia Moghe, “NRA says its aware of ‘significant diversion of its assets’ in tax filing,” CNN, November 26, 2020, https://www.cnn.com/2020/11/25/politics/nra-assets-diversion-tax-filing/index.html. Most notably, the NRA faces lawsuits from attorneys general in New York and D.C. that are proceeding full speed ahead, challenging the NRA’s alleged violations of charities law. The judge overseeing the New York case has written “the Attorney General’s allegations in this case, if proven, tell a grim story of greed, self-dealing, and lax financial oversight at the highest levels of the National Rifle Association.” At the start of 2021, the NRA filed for Chapter 11 protection in federal bankruptcy court, only to have a federal judge throw the case out for “not having been filed in good faith.”3“Court Dismisses NRA Bankruptcy Case,” NRA Watch, May 11, 2021. https://nrawatch.org/filing/court-dismisses-nra-bankruptcy-case/. The same judge wrote that NRA CEO Wayne LaPierre’s behavior in filing the bankruptcy was “shocking.”4“Court Dismisses NRA Bankruptcy Case,” NRA Watch, May 11, 2021. https://nrawatch.org/filing/court-dismisses-nra-bankruptcy-case/.