Thread by @KlasfeldReports

Good morning.

The NRA bankruptcy trial is heading to closing arguments today. I will be covering those proceedings for @LawCrimeNews.

Up first is the New York Attorney General's office, seeking to dismiss the case

Background art19.com/shows/objectio…

Gerrit Pronske is delivering summations on behalf of the NYAG:

"This case was filed for a pure litigation strategy purpose: to 'dump New York,' which basically means to escape regulation in the New York proceeding."

Pronske on the NRA bankruptcy case:

"It is a circus sideshow that eventually ends up without succeeding to stop the New York proceeding."

Wayne LaPierre formed a company called Sea Girt LLC in Texas, which regulators call a "wholly owned shell company" to establish jurisdiction there.

Pronske: "It's formation, your honor, is pure forum shopping."

"Sea Girt is the poster child of a bankruptcy filed in bad faith."

Knowing that it needed board approval, the NRA tried to hide the bankruptcy from the board, Pronske said.

"This is as shocking as it is completely dishonest. It is nothing less than fraud and recklessly, it put the NRA in a horrible position."

NRA board member, Judge Phil Journey, called the manner the group obtained approval as a "fraud perpetrated on this court."

Pronske notes: "I agree with this board member's statement."

"That's not just a fraud on the board. That's a fraud on this court."

Turning to Wayne LaPierre's alleged conflicts of interest, NYAG's counsel Pronske shows a picture of the yacht the NRA chief rode on: the "Illusions."

"These weeklong private trips on yachts are straight out of 'Lifestyles of the Rich and Famous.'"

Brian Mason, a lawyer for Ackerman McQueen, said that the NRA "slandered and libeled" the state of New York, in claiming to be the victim of a politicized process.

"It's all a bunch of political, public relations noise," Mason said.

The NYAG's lawsuit aims to shut down the NRA, which filed for bankruptcy in Texas purportedly to avoid that fate.

But Mason notes that "the New York attorney general does not have a weapon to shut down the NRA."

Only NY judges can do that.

Mason says the NRA board didn't specifically approve the bankruptcy filing:

"The problem with all of this, your honor, is you can't ratify a fraud, which is exactly what the evidence in this trial has shown."

If the judge does not dismiss the NRA's bankruptcy petition, Mason says: "It's gonna throw a monkey wrench into the gears of federalism."

"It will throw gasoline on the ideological fires that are already raging out of control in this country."

A pivot point of Mason's summations involves defending the integrity of New York's legal process, calling the NRA's attacks on it "slander."

"Failure to dismiss this case would give truth to the lie that New York officials are corrupt and do not allow for a level playing field."

Check out my ongoing write-up of today's summations. This story will be updated as proceedings are ongoing.

https://twitter.com/lawcrimenews/status/1389235655503499264?s=20

Mason offers a zinger on the NRA's claim that it went on "course correction" after the group's embarrassing revelations became public.

"Can you really clean your house if you just swept everything under the rug?"

He describes LaPierre as a "dictator" of the NRA.

Mason addresses the argument that the NRA needs LaPierre to be viable.

"This is the very definition of corruption: sacrificing what is right for what is lucrative."

Mason concludes: "If this case is dismissed, the NRA is going to be okay. They're swimming in cash."

"They have remedies in different courts," he adds.

Judge Hale calls for a 15 minute recess.

Court reconvenes at 10:45 a.m. Central Time.

We're back.

Delivering summations now is lawyer Clay Taylor, who represents the NRA's board member Judge Phil Journey.

Journey's critical of LaPierre but opposes dismissal of bankruptcy petition.

"We believe this trial is the most important trial in America right now."

Instead, Journey wants an examiner to be appointed.

Lisa Lambert is now up from the office of the U.S. Trustee, blasting the NRA's formation of a "shell company" Sea Girt LLC to file bankruptcy in Texas.

She argues for dismissal.

Lambert says LaPierre has "failed to provide" the proper oversight of the NRA.

Greg Garman is delivering his summations for the NRA.

Garman responds to argument that NRA bankruptcy would open floodgates:

"The idea that you are being asked to set a new precedent to say, 'Well, all nonprofits should file bankruptcy to get out of regulatory proceedings,' is not supported by the acts and conduct of this debtor."

Brief recess.

Garman acknowledged that there would be "cringeworthy" revelations from the trial.

But he asserts: "It is cold; it is stale; it has been cured."

He is talking about the NRA's alleged "course correction," which NYAG and Ackerman McQueen argue didn't happen.

On behalf of the NRA, Garman plays a clip of a video of a press conference by NYAG Letitia James.

The video shows portions from the NYAG's announcement of the lawsuit from August 2020, during the question and answer session.

Garman:

The NRA did something "very, very hard" and "very, very brave" in filing for bankruptcy.

After learning that the U.S. Trustee has taken a position against the NRA's bankruptcy petition, Garman reacts: "We have natural enemies."

He does not directly accuse the Biden DOJ of political antagonism, but that seems to be the implication/innuendo.

NRA summation ends.

Court is now in recess.

NYAG and Ackerman McQueen reserved time for rebuttal.

NYAG lawyer Gerrit Pronske: "Not dismissing this case is the same as condoning it."

He says that the case would stand for the proposition that you can file Chapter 11 when you're in excellent financial health for litigation strategy.

Pronske says it would also give debtors "carte blanche" to open up a "shell company" for bankruptcy purposes.

"This is the worst abuse I have ever seen," he adds.

He says it'd signal: "If you don't like what's going on in your state court lawsuit, come on down to Dallas!"

Ackerman McQueen's lawyer Brian Mason now delivering rebuttal summations attacking the basis of the bankruptcy petition.

"If the foundation is rotten, you can't build a house on it, and that's what they're asking you to do here, your honor."

Mason: NRA's counsel didn't dispute that Sea Girt, which LaPierre created in Texas, was a "sham entity" created to "manufacture venue" for the bankruptcy proceeding.

Mason hits back at NRA's counsel Greg Garman cryptic remark "We have natural enemies" in reacting to the news that the U.S. Trustee opposes their bankruptcy.

"Is the [DOJ] weaponized against the NRA because they disagree with the position of where the bankruptcy is going?"

Judge Hale delivers his concluding remarks on the proceedings.

"My anticipation is that we'll get you a written ruling in approximately a week."

Summations adjourn.