New York Seeks to Break Up National Rifle Association over Financial Malfeasance

[Zincwarrior]

https://news.trust.org/item/20200806144855-coo0a


Aug 6 (Reuters) - New York state's attorney general sued to dissolve the National Rifle Association on Thursday, alleging senior leaders of the non-profit group diverted millions of dollars for personal use and to buy the silence and loyalty of former employees.

The lawsuit announced by Attorney General Letitia James alleges NRA leaders paid for family trips to the Bahamas, private jets and expensive meals that contributed to a $64 million reduction in the NRA's balance sheet in three years, turning a surplus into a deficit.

James alleged in a statement that NRA leaders "used millions upon millions from NRA reserves for personal use," failing to comply with the NRA's own internal policies in addition to state and federal law.

The confrontation pits James, a Democrat, against the largest and most powerful gun organization in the United States, one that is closely aligned with President Donald Trump's Republican Party.

The action is certain to further polarize a country where the NRA is revered by conservatives as a champion of the U.S. Constitutional right to keep and bear arms and vilified by liberals as an enabler of rampant gun violence.

"The NRA's influence has been so powerful that the organization went unchecked for decades while top executives funneled millions into their own pockets," James said in a statement. "The NRA is fraught with fraud and abuse, which is why, today, we seek to dissolve the NRA, because no organization is above the law."

The NRA, which teaches gun safety in addition to advocating laws making it easier for Americans to own guns and ammunition, is subject to New York law because it is registered as a non-profit organization in New York, where it conducts most of its financial transactions.

The NRA, which has its national headquarters in Fairfax, Virginia, about 20 miles (30 km) west of Washington, D.C., did not immediately respond to a request for comment.

New York state and the NRA have tangled before. The state has taken legal action against NRA-branded insurance policies sold to gun owners, and the NRA is suing the state for closing gun stores under an executive order to halt the spread of COVID-19.

The latest lawsuit names the NRA as a whole and four senior executives of the group including Wayne LaPierre, the executive vice-president who has been atop the leadership for decades.

It also names former Treasurer and Chief Financial Officer Wilson Phillips, former Chief of Staff and Executive Director of General Operations Joshua Powell, and Corporate Secretary and General Counsel John Frazer.

The suit charges the NRA with "awarding contracts to the financial gain of close associates and family, and appearing to dole out lucrative no-show contracts to former employees in order to buy their silence and continued loyalty," James's office said in a statement.

"The failure of the NRA to comply with multiple fiduciary responsibilities and state and federal laws resulted in the NRA seeing substantial losses on its balance sheet: going from a surplus of $27,802,714 in 2015 to a net deficit of $36,276,779 in 2018 - contributing to a total loss of more than $64 million in just three years," the statement said.

In addition to attempting to close down a group that has existed since 1871, James seeks to recover millions of dollars in lost assets and to stop the four executives from serving on he board of any other not-for-profit group in the state. (Reporting by Daniel Trotta and David Shepardson; Editing by Howard Goller)

Our Standards: The Thomson Reuters Trust Principles.

[JAD]

Thank God the left is now more pro-gun thanks to Antifa.

[Grey]

Not sure why you need to dissolve the org rather than criminally charging the leadership that committed fraud...

[LorenzoS]

I'm no rocket surgeon, but maybe incorporating an organization in a state that is dedicated to the organization's destruction was a mistake.

[Zincwarrior]

I'm no rocket surgeon, but maybe incorporating an organization in a state that is dedicated to the organization's destruction was a mistake.

Remember, it might have been incorporated 100 or so years ago.

[LorenzoS]

Remember, it might have been incorporated 100 or so years ago.

True, NY State's anti gun agenda just snuck up on everyone recently. It's not like the NRA had a few decades to get ahead of this.

[paherne]

This might be a good thing, in the long run, if we get rid of all the grifters like Wayne LaPierre who steal for their own purposes.

[joshs]

Remember, it might have been incorporated 100 or so years ago.

Actually, 149.

[blues]

If NY'ers had any sense at all, they'd break up Cuomo and de Blasio. Speaking of bloodsucking parasites.

[45dotACP]

I suppose my first question is whether or not the accusations are true.

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[HCountyGuy]

While the NRA demonstrably needs the current leadership tossed out for blatant fuckery, New York going after them for corruption is laughable. This situation is pretty aptly illustrated with that Spider-Man pointing at Spider-Man meme. They might honestly have a valid case, but let’s not pretend it’s the basis for why they’re going after them.

[HCM]

Not sure why you need to dissolve the org rather than criminally charging the leadership that committed fraud...

Because it’s about the culture war against guns not the financial malfeasance.

[Grey]

Because it’s about the culture war against guns not the financial malfeasance.

Shit is always rhetorical when it comes to guns and the anti culture...

[BillSWPA]

I suppose my first question is whether or not the accusations are true.

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There is a very long thread here discussing the details.


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[farscott]

It might be interesting if the NY AG's office was negotiating with the NRA before filing the suit. If so and the negotiations for a settlement were not successful, the suit might be a means of putting pressure on the leadership to resign and/or pay restitution. I believe LaPierre and company would burn the NRA down before taking a personal hit or income cut.

[Joe in PNG]

Larry Correia's comment from FB:

A few things from my perspective on New York trying to dissolve the NRA (keeping in mind this just broke and I don't know many details yet):

1. Wayne LaPierre is super corrupt, so every negative thing he is accused of is probably accurate. He was past his expiration date a decade ago.

2. There was a fight in recent years to keep the NRA to its mission and not just be the WLP slush fund, but Wayne won.

3. However, the narrative of "New York politicians try to destroy the NRA right before election" is probably going to be the biggest political fund raiser in history.

4. Because gun owners mostly don't know who WLP is, don't really know what the NRA does good or bad, but they are loyal to the IDEA of what the NRA does.

5. Which means that even if they dissolve the NRA, all those gun owners, their money, and gun rights activists aren't going to suddenly vanish (sorry, libs). They'll go to other orgs, some of which are more focused and dedicated to the mission than the NRA is. (however, some of these can/will be just as inept/corrupt).

6. Even with the WLP and Ack/Mack clown show, the NRA is still the 800 pound gorilla with the clout, reach, and contacts, so ideally WLP gets burned at the stake, the NRA cleans house, and refocuses on its actually mission.

7. If #6 doesn't shake out, expect to see one of the current smaller orgs turn into the new NRA.

8. After a year of record gun sales to newbs thinking we are on the verge of societal collapse, with blue flu and mayors letting chaos reign, the whole "only the police should have guns" argument falls flat. Even the usual gun control parrots are remarkably silent about "assault weapons" while Black Lives Matter is carrying them. Nobody wants gun control right now, so this might actually be a good time to shake up the NRA.

9. That said, we had better get our shit together FAST, because the left's moral compass is a wind sock, and though they hate the police and love them some AR-15s today, they'll be happy to go back to banning guns tomorrow and bragging about how they'll send the police to kill you if you refuse to turn them in.

10. NRA leadership can suck AND New York can be a bunch of hypocritical douches for only going after the non-profits they don't like. These two things aren't mutually exclusive. Just because New York consistently sucks doesn't mean WLP is an innocent victim here.

[LOKNLOD]

Not sure why you need to dissolve the org rather than criminally charging the leadership that committed fraud...

Because your goal is to impede the organization’s goals for politics reasons, not actually punish wrongdoers and protect the honest members?

[Grey]

Because your goal is to impede the organization’s goals for politics reasons, not actually punish wrongdoers and protect the honest members?

It was a rhetorical comment :)

[Spartan1980]

So I guess the big banks and media conglomerates are next?


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[Glenn E. Meyer]

It also weakens their campaign plans by tying up personnel and resources. Fund raising drops if you seem like a crook. Thus the timing and the election is related.

[Wise_A]

This is more or less what NYS's anti-gun campaign looks like these days--less legislation, more thuggery. After they passed the SAFE Act, they were astonished when almost nobody complied with the registration component. They were embarrassed when their ammunition database collapsed on itself. Large portions of the bill wound up either getting successfully contested in court (bai bai 7-round magazine limit). Internet ammunition sales were supposed to be restricted, and all ammunition sales were supposed to require the equivalent of a NCIC check, but all we really got saddled with is "assault weapon" component. And even there, they were pretty mad when people started building compliant ARs. Their current strategy a la SAFE Act is to not say anything and leave law-abiding citizens too confused and scared to actually exercise their rights.

Of course, the colossal fucking elephant in the room--and this is key--law enforcement officers are exempt from all of the provisions. Kind've incompatible with current politics.

After the various legal challenges, and the absolute terror that that NYC lawsuit inflicted, their new strategy is thuggery using Leticia James' office of the attorney general. A couple weeks ago, they issued C&Ds against a bunch of retailers selling 80% receivers, claiming that they were "providing a means to circumvent the assault weapons ban". Yes, you can circumvent the useless ban using a finished stripped lower, or an assembled lower, or a complete rifle. The whole point was (A) to harass retailers doing business with NYS residents, and (B) engage in the favorite pastime of tyrants, building a list of people that can resist them. They're going with thuggery instead of legislation because legislation is easily countered by appealing in court, whereas thuggery is just a legal way to terrorize citizens.

Accompanying the "ghost gun" C&Ds is a pair of poorly-written bills, btw, to ban "ghost guns". They're named after one of the Parkland dead (ironically, a non-ghost gun using a 10-round magazine), and a 16-year-old drug dealer that got murdered by a rival gang of drug dealers (one of the shooters was also charged with another murder the same year, yay gun violence prevention!). These bills are classics--they ban the possession of "materials", 80% lowers, and also ban anyone other than a gunsmith from modifying a gun. Or--wait for it--disassembling and reassembling it, depending on how literally you interpret the dipshit things they wrote. They're into the assembly, although I'd not be surprised if they get killed so long as Joe Biden stays the hell away from supreme court appointments.

Anyways, sorry my tax dollars are being used to shit on everyone else's freedoms.

[blues]

It is beyond sad to see what NY has willingly become. I no longer have the words to describe the disappointment.

[Hot Sauce]

Their current strategy a la SAFE Act is to not say anything and leave law-abiding citizens too confused and scared to actually exercise their rights.This is the essential summary of a lot of anti-gun moves in the Northeast, including this announcement by NY AG Leticia James, as well as a lot of gun control legislation in NY/NJ/Massachusetts.

While there's certainly something to be said for the dummies who write legislation without having an understanding of the subject matter, and this does happen a lot, I think the net effect is known and intentional. If you create a patchwork of laws that don't leave clear answers for citizenry about what is and isn't legal, it dissuades reasonable risk averse people from practicing their 2nd Amendment rights. And when practice of said rights becomes less common, the mentality of "guns are bad, for any reason" spreads, and that's one more winning notch in the culture war.

We may not like the adversaries, nor their methods, but we have to admire the results they've been able to achieve. Firearms are a hush-hush topic in the largest population centers in the country, where people need them as much if not more than elsewhere.

[Eric_L]

Just wondering who will pay the defense bills.... oh, the membership will. ( I am a member. )

[Glenn E. Meyer]

I would like to add to Larry Correia's list. It is time that one demands that their legislators take an active hand in proposing and fighting for bills that promote gun rights. The GOP has been abysmal in this regard. Can anyone remember the debacle on the HPA and reciprocity? Have you heard anything about them? There was the SAGA act to negate state AWBs and Mitch didn't let it get to the floor or serious debate. They spent tons of time passing bills to get rid of Obama care that had no chance of passing just to make a point.

It seems the strategy from Congress was wait for SCOTUS to do their job. We see how that worked out.

When they had control of the House and Senate progun bills should have been brought up, passed in the house and thrown in the face of the filibuster. Milder progun laws like the HPA should have been attached to necessary legislation.

About fund raising - I don't know if this is a good fund raiser. It might be if you drill down in their core marketing slice, but that further isolates them from being more inclusive and a long term loser. The Socialists are going to take away Wayne's perks isn't a good story. Decent execs would resign for the good of the cause and a new set swear to clean house.

[Borderland]

It is beyond sad to see what NY has willingly become. I no longer have the words to describe the disappointment.

It isn't just NY. Our AG banned WA residents (me) from participating in https://www.armedcitizensnetwork.org/. The AG effectively sued the org. as an insurance company not in compliance with WA ins. code. Bob Ferguson was behind that 100%. I think that's part of the NRA suit also, selling insurance to people who CC.

I guess they think that people won't CC if they can't find insurance for legal representation in a shooting. I doubt that will be the case. I did it for about 20 years without insurance.

They'll probably go after the CMP next. Another org. that I support.

[blues]

It isn't just NY. Our AG banned WA residents (me) from participating in https://www.armedcitizensnetwork.org/. The AG effectively sued the org. as an insurance company not in compliance with WA ins. code. Bob Ferguson was behind that 100%. I think that's part of the NRA suit also, selling insurance to people who CC.

I guess they think that people won't CC if they can't find insurance for legal representation in a shooting. I doubt that will be the case. I did it for about 20 years without insurance.

I'm aware of the issue in WA...as CCW Safe stopped offering their service there as well.

I mentioned NY because it was my home for most all of my first 35 years on the planet. It wasn't always what it is now.

[Borderland]

I'm aware of the issue in WA...as CCW Safe stopped offering their service there as well.

I mentioned NY because it was my home for most all of my first 35 years on the planet. It wasn't always what it is now.

Looks like you may have bought some time but nobody is really safe from this absurdity.

I find it ironic that dems are trying to pass legislation to require firearms owners to carry liability insurance and at the same time restrict their ability to get it. Catch 22.

[ralph]

It might be interesting if the NY AG's office was negotiating with the NRA before filing the suit. If so and the negotiations for a settlement were not successful, the suit might be a means of putting pressure on the leadership to resign and/or pay restitution. I believe LaPierre and company would burn the NRA down before taking a personal hit or income cut.

You’re exactly right.. Wayne won’t leave until he’s pumped every dollar out of the NRA that he can..If, in the future the NRA pulls its head out of its ass, gets rid of Wayne, and the oversized board of directors, moves out of NY, reorganizes, and refocuses on their primary mission, then I could support them..But, until then, not a dime..

[NEPAKevin]

Maybe someone could start a rumor that when Jeff Epstein died, all the evidence he had against the Clintons was secretly sent to Wayne.

[karandom]

Could this ultimately be a good thing?

If they charges are true, then WLP and all high level leadership no to go and its no longer an effective organization. As other have pointed out pro gun groups exist and can carry the mantle forward and it might be time for the current org to die given the (alleged) corruption.

Financial maleficence needs to be routed out even if its NY doing it in my opinion.

[Wise_A]

Could this ultimately be a good thing?

If they charges are true, then WLP and all high level leadership no to go and its no longer an effective organization. As other have pointed out pro gun groups exist and can carry the mantle forward and it might be time for the current org to die given the (alleged) corruption.

Financial maleficence needs to be routed out even if its NY doing it in my opinion.

No. Leticia James doesn't just want to sue the NRA and dismantle it. She wants to sue the NRA, seize the assets, and redistribute them to anti-gun causes. I want to take a minute to appreciate how completely fucking tyrannical that is.

Let's say--optimistically--Leticia only wants the cash. What she is proposing, then, is taking money contributed by NRA members across the country and turning it towards a different end. Remember, some of this money isn't just your $35/yr and instructor fees, some of it is money that members bequeathed to the NRA upon their deaths. Some of it is every red cent those people owned.

The supreme court has already held that political contributions are constitutionally-protected speech. Leticia isn't saying, "we're going to take this money and give it to GOA or NYSRPA", she's saying "we're going to take NRA money and give it to anti-gun groups". If that sounds an awful lot like a horrific attack on the First Amendment, it's because it is, and it's being perpetrated by the top law enforcement officer of the Empire State. Meanwhile, millions of New Yorkers are out of work, and the largest city in the state is, overnight, becoming Detroit. And of course, I haven't even touched on what happens if they get their hands on the Whittington Center, Fairfax, etc.

I've been as critical of the NRA and WLP as anyone, but no, this is not a fight you want to lose.

[Suvorov]

Not sure why you need to dissolve the org rather than criminally charging the leadership that committed fraud...

They could care less about the fraud - they are going after the organization. Fraud is their excuse. If the cared about fraud the DNC would be first in line.

[Borderland]

They could care less about the fraud - they are going after the organization. Fraud is their excuse. If the cared about fraud the DNC would be first in line.

https://i.ibb.co/0GFGtgX/shocked.jpg