Two New Stories I’m Following

This is going to be a quick post without much detail or analysis as I am heading out of town shortly.

First, the US Supreme Court ruled unanimously in favor of the NRA in the case of National Rifle Association v. Vullo. The court’s opinion was written by Justice Sonia Sotomayor. The full 31-page opinion is here. Justices Gorsuch and Jackson had concurring opinions. The SCOTUS vacated the 2nd Circuit’s decision and remanded for further proceedings.

From the opinion:

Six decades ago, this Court held that a government entity’s “threat of invoking legal sanctions and other means of coercion” against a third party “to achieve the suppression” of disfavored speech violates the First Amendment. Bantam Books, Inc. v. Sullivan, 372 U. S. 58, 67 (1963). Today, the Court reaffirms what it said then: Government officials cannot attempt to coerce private parties in order to punish or suppress views that the government disfavors. Petitioner National Rifle Association (NRA) plausibly alleges that respondent Maria Vullo did just that. As superintendent of the New York Department of Financial Services,
Vullo allegedly pressured regulated entities to help her stifle the NRA’s pro-gun advocacy by threatening enforcement actions against those entities that refused to disassociate from the NRA and other gun-promotion advocacy groups. Those allegations, if true, state a First Amendment claim.

I would see also Stephen Gutowski’s report on this as it will be updated. There is no official comment from the NRA as of yet but they did have this graphic posted on Twitter.

The other story that I’ve been following broke a couple of days ago. Vista Outdoor rejected the revised offer from MNC Capital while confirming their acceptance of the offer from Czechoslovak Group (CSG) for the Kinetic Group aka Vista’s ammo business. CSG has also increased their offer by $50 million which makes it a total of $1.96 billion. Assuming that the shareholders approve it and the Committee on Foreign Investment in the United States allows the transaction to continue, Vista shareholders will receive one common share of Revelyst stock and a cash payment of $16 for every current share of Vista Outdoor owned.

The Wall Street Journal had a long article on this transaction on May 22nd. It paid particular attention to the objections of Sen. J. D. Vance (R-OH) and former Sec. of State Mike Pompeo. The major emphasis of their objections seem to be that it would give a foreign company too much control of the US gunpowder, primer, and ammo market.

Now On To NRA Committee Assignments

The real work of the NRA Board of Directors is done in the various committees. These committees range from the Audit, Finance, and Ethics Committee to Outreach, Federal Affairs, and Legislative Affairs. Officially, it will be new NRA President Bob Barr who selects the members for all these committees. More on that later.

There is also the Special Litigation Committee, the Nominating Committee, and the Executive Committee. This last group of committees had its members selected at the Board meeting after the Annual Meeting. The Special Litigation Committee is, by default, composed of the officers. (see correction) The Nominating Committee is a nine-member committee with reformers holding a 5-4 majority. It will now be chaired by Charlie Beers who is Chairman Pro Tem (highest vote getter).

Going back to 2019, you may remember that a number of reformist Board members were purged from their committee assignments for asking the wrong questions and given no committees upon which to serve. This was done by former NRA President Carolyn Meadows presumably with the approval of then-EVP Wayne LaPierre. Among those purged from their committee assignments were Esther Schneider, Tim Knight, Sean Maloney, Duane Liptak, and Allen West. All five ended up resigning from the Board. This retaliation against these Board members became an issue in the New York trial. The jury found that the NRA had retaliated against them in violation of New York’s whistleblower law. The video deposition of Carolyn Meadows on retaliation helped in this finding.

NRA President Bob Barr has a unique opportunity to show Judge Joel Cohen that the NRA has reformed enough that it will not need a special monitor. He can grab this opportunity if and only if he does certain things. First and foremost, he should consult with Bill Bachenberg and Mark Vaughan on the appointment of committee members and make these appointments in a balanced manner such that reformers are fairly represented. For example, I think Rocky Marshall, one of the Four for Reform, has the requisite knowledge and experience to be valued addition to the Finance Committee. Likewise, who better than a judge like Phil Journey to serve on Legal Affairs. Additionally, the appointment of the chair and vice chairs of the committees needs to be even handed.

Second, Barr needs to be transparent in his appointment of committee members. In the past, the composition of committees was rarely, if ever, disclosed. This needs to change. The members of the NRA deserve to know who is serving on each and every committee whether it is a Board member or an outside appointee.

Finally, and this is a critical point, Charles Cotton and David Coy must not be allowed to continue to serve on either the Audit or Finance Committees. Their abdication of their fiduciary duties while heading the Audit and Finance Committees was one of the reasons that the New York Attorney General’s Office was able to a) bring the lawsuit in the first place and b) successfully win their case with the jury. Allowing either of them to continue to serve on these important committees would send a sign to both Judge Cohen and the membership of the NRA that the leadership of the NRA was not serious about cleaning up the organization. Members and potential members will continue to keep their wallets closed if they remain in place. Frankly, I think the greatest service that they could do for the NRA which they profess to love would be to resign from the Board altogether.

CORRECTION: I was wrong in assuming that the Special Litigation Committee members were selected by position. That is that it was to be composed of the President, 1st VP, and 2nd VP.

According to a Board resolution in January 2021, the SLC was to be composed of Carolyn Meadows, Charles Cotton, and Willes Lee. That all three were officers was merely coincidental. After then-1st VP Willes Lee resigned from the SLC, it was later reconstituted by Board resolution to add David Coy and perhaps Bob Barr.

The key thing to remember about the Special Litigation Committee is that it only concerned matters dealing with the New York Attorney General’s case against the NRA. The rationale for even having it was that given the NRA’s then-CEO/EVP Wayne LaPierre and then-General Counsel John Frazer were named defendants in the case their participation in decision making regarding the case would be a conflict of interest.

Oh, The Things You Will Find

If you have ever misplaced a key for a padlock or gun case, you will relate to this next post. In my case it is a tubular key for my Tuffpak gun case which I bought at an auction a couple of years ago. I know it is somewhere but I don’t know where. I can even see the key that was tied to a piece of cord in my mind’s eye.

Somewhere along the line I must have untied it from the case and now I need it if I want to use this gun case to carry my rifles to Africa. The key was not in the case or any of the bags stuffed in the case. This led me to start looking in the obvious locations such as my desk drawer and my nightstand drawer. Nope, not there.

This led to searching elsewhere in other drawers which has turned into something of an adventure. It is an adventure as you never know what you will find or rediscover. The photo below illustrates just a fraction of the things found.

There are the things you’ve been looking for and then there are the things you didn’t realize you still had. In the former category is my Swiss Army Alox Pioneer knife in the center of the photo. Turns out it was in a tray on top of my chest of drawers. Also found there were the mini level, the Lansky Mini Dog Bone knife sharpener, the patriotic stickers, and the suction-cup mounted peep site for your shooting glasses. I think that means I need to clean up the top of that chest of drawers so I can find even more stuff!

Then in the category of things I didn’t realize I still had are multiple sets of corded ear buds that no longer work with my newer iPhone as it doesn’t have a headphone jack. I also didn’t remember buying that blue Master TSA lock nor the Energizer reading light. The latter actually still works!

Finally, there are the things you knew you had but you didn’t remember putting them in that drawer. First, was the school picture of my first girlfriend taken in 1973-74. I had met Pat who was from Ontario at a weeklong summer camp in the mountains of North Carolina. We did get together the next year in Canada after I had graduated high school and she was headed to Grade 13. Unfortunately, we lost track of one another when she went off to university in Ottawa. I do wonder what has become of her. Second, there are the Nikken magnets which are supposed to reduce pain or swelling by adjusting your magnetic polarity or something like that.

As to that missing key, I’m still looking and there are still more drawers to search!

Looks Like Woody Phillips Settled With NYAG

Based upon a document filed yesterday by attorneys for the New York Attorney General’s Office and Wilson “Woody” Phillips, it appears that Phillips and the Attorney General’s Office have come to a settlement agreement. They mutually agreed to adjourn the briefing schedule with “respect to equitable relief applicable to Mr. Phillips.” This is pending a stipulation of settlement. Judge Joel Cohen has signed off on this stipulation and proposed order regarding the briefing.

Going back to the jury trial, Phillips was found liable for breach of fiduciary duty along with damages of $2 million. He was also found to have engaged in a related party transaction. It will be interesting to see if the stipulation of settlement will be for the full $2 million in damages as found by the jury.

Along these same lines, it would probably be in Wayne LaPierre’s best interest, though expensive, to execute a similar settlement. The jury said he must repay $5.4 million of which he had already repaid $1 million. I believe the Attorney General’s Office set the amount of damages at a much higher level and could be asking Judge Cohen to approve the higher amount.

Now that the Board of Directors has elected three out of four candidates for leadership positions, has named a Chief Compliance Officer, and voted to give the reformers five out of nine positions on the Nominating Committee, it may have a good case for reaching a settlement with the Attorney General’s Office without the imposition of a special monitor. The settlement of the NRA Foundation with the DC Attorney General certainly has set a precedent to do this. More importantly, a settlement before the next phase of the trial would allow the NRA to finally be free from the greedy grip of Brewer, Attorneys and Counselors. Personally, I can’t see any advantage to the NRA of actually going to the next phase of the trial if a settlement can be made that allows them to move forward without a special monitor. The only one who wins would be Bill Brewer as his pocket would be even more padded than it already is.

You can see the court document embedded below or linked here.

On This Memorial Day Weekend

There are a lot of sales going on right now. Whether it is Amazon or Nike, it seems virtually every online site or brick and mortar store is having a sale. They are using the three-day weekend to pump their sales numbers.

Notice I said “virtually”. One company that is not having a sale this weekend is Phlster Holsters owned by my friends Jon and Sarah Hauptman. Phlster is home to the Enigma holster system which is a new approach to appendix carry.

This was Jon’s response when asked if he was having a Memorial Day sale.

Jon is correct and I know if I ever decide to carry appendix-style it will be with one of his Enigma holsters. It will not be just because it is a great holster. It will be because I like to deal with companies that have the proper value system – and Jon and Sarah just demonstrated that.

So regardless of whether you take advantage of any of the sales this weekend, please remember to honor the ultimate sacrifice that these men and women made in service to our country and our own freedom.

Note: As an affiliate of Amazon, I have to say I earn a small commission if you use a link to them from my blog. This note is only to satisfy their requirements and not to urge you to run over to Amazon so I can make a commission.

Hamlin Reaches Out To Staff Today

New NRA CEO and EVP Doug Hamlin sent out an email this morning to all NRA staff. It was part thank you, part what we need to do, part how he intends to manage, and part recognition that finances are tough.

There were some interesting points in what he said to staff that need to be emphasized. First and foremost, he said that he and all the NRA staff work for the members. That was nice to hear given the perception that many including Wayne only saw the members as sheep to be fleeced. Second, Hamlin emphasized that the NRA is not leaving Fairfax anytime soon. He encouraged employees in the Metro DC region to return to work in the headquarters building. Third, he said there would be new digital marketing initiatives to increase memberships and challenged employees to tell their friends to join. Finally, he said his objective was to restore trust in the NRA. He didn’t sugarcoat the fact that finances are tight.

The one thing I did disagree with him on is the assertion that the NRA is “the most significant conservative organization left on the battlefield.” I think we need to get away from the perception that the NRA is only for conservatives. While I am most certainly a conservative with libertarian leanings, I recognize that support for the Second Amendment and our civil rights is not limited to conservatives nor should it be. Regardless of where you are on the political spectrum, if you support the Second Amendment then you are my friend.

You can read the whole email for yourself as I’ve posted it below:

From: Hamlin, Douglas
Sent: Thursday, May 23, 2024 9:28 AM
To: #All NRA Employees <#AllNRAEmployees@nrahq.org>
Subject: Full Speed Ahead!

To All:

I’m humbled and honored to be sending you this e-mail as your new EVP/CEO. It has been a tumultuous 5 years as we have battled for the survival of our beloved National Rifle Association (NRA). Every one of us has been in the trenches as we have fought the good fight and kept the faith. We have stood strong shoulder to shoulder working together on behalf of our members. I want to emphasize – WE WORK FOR OUR MEMBERS!

THANK YOU for not wavering as we have withstood extreme pressure and disinformation from the media, left leaning political forces, and the State of New York.

I’ve been a proud NRA Staffer for over 10 years. I do not assume my new position for any other reason than I love my country and will not stand idly by as we see our freedoms diminished. The NRA is the most significant conservative organization left on the battlefield. We are targeted because we win…and we are right in our cause!

As we move forward my primary objective is to restore the trust of our members, our industry, our donors, and our staff. We are in a tough spot financially but are going to make it. I will be spending a significant amount of time fundraising to keep our 153 years + operation on track. Once our members see we are making progress with the changes resulting from the efforts of our Board of Directors, they will come back in significant numbers. I ask you to go out and recruit new members. Tell your friends to join!

There has been a lot of talk about moving our operations away from Fairfax, Virginia. We will not be moving at this time. I hope those of you in the DC, Maryland, Virginia region will come to our office as much as possible. 

My leadership style is one of consensus building. I do not like to be micro-managed and that’s how I will interact with the leadership team. Having said that I’m not afraid to make tough decisions and get involved when and where needed.

We will be moving quickly on some digital marketing initiatives to stir up some positive public relations that will hopefully stimulate new memberships. Stay tuned for more information on our plans as we develop them.

In closing thank you for your dedication to our cause. Our mission to protect the Second Amendment rights of law-abiding citizens is more important now than ever before. Hold your heads high as we continue to do the important work of the NRA…together.

Doug Hamlin

Executive Vice President/CEO

National Rifle Association

Change Has Come Quickly In Fairfax

Doug Hamlin was elected CEO and EVP of the NRA only yesterday but has hit the road running. Today, he announced that the positions of secretary and general counsel would be separated. As a result, John Frazer is no longer the General Counsel of the NRA. However, he will remain in the position of Secretary for which the Board elected him yesterday.

The new General Counsel is Michael Blaz. He graduated from the University of Notre Dame Law School in 1989. Blaz did his undergraduate work at Auburn University where he was a member of Phi Eta Sigma honor society. According to Martindale-Hubbell, Blaz is licensed to practice law in Virginia (1989) and the District of Columbia (1991).

Here is Hamlin’s announcement of the separation of the two positions and the appointment of Blaz as General Counsel.

Blaz had been the Assistant General Counsel before his promotion to General Counsel. I would also point out that Blaz has significantly more legal experience than Frazer who was only admitted to the bar in 2014.

The optics of a general counsel being found guilty of breach of fiduciary duties made it untenable to keep Frazer in that position. Hamlin has demonstrated he is working quickly to clean up the mess he was left at the NRA.

An Interesting Day In Dallas

This is going to be short post because I’m tired. I have been watching and corresponding about the events surrounding the Board of Directors meeting all day.

First, just the bare facts. Bob Barr representing the Old Guard did win the Presidency. The vote was 37-30. Then the surprises began. Bill Bachenberg from the reform slate went head to head with Blaine Wade for 1st VP and won 36-31. Following that, reformer Mark Vaughan, president of the Oklahoma Rifle Association, beat Tom King 35-31. King really represented the Old Guard and his defeat was a sea change in attitude on the Board.

Second, and what I consider the biggest surprise, Doug Hamlin, Executive Director of Publications and the reformer’s choice for EVP, beat Ronnie Barrett for EVP/CEO. There is some talk that Hamlin is intended as an interim choice while a nationwide search is conducted.

For a bare bones, just the facts ma’am report on what has happened so far, the NRA-ILA did a decent job. Here is a link to it.

A more in-depth report is from Stephen Gutowski of The Reload which has some comments from Jeff Knox.

The last I knew was that the meeting was still continuing after coming back from a dinner break. The keys going forward will be membership on the Nominating and Executive Committee. As I noted this morning, there were no reformers nominated for the Executive Committee. That must change.

I hope to have more tomorrow.

Ronnie Barrett For EVP?

I just got a copy of the Nominating Committee report. In addition to Bob Barr for President, Tom King and Blaine Wade are nominated as 1st and 2nd VP respectively. As rumored, David Coy was sacrificed.

The big surprise is Ronnie Barrett for EVP. I am sure the argument will be that he has the requisite business experience to run a large organization such as the NRA thanks to his history as CEO of Barrett Firearms Manufacturing. Now that he has sold that company to the Australians, he is free to take on other challenges. Not being in the room, we don’t know if he is being pitched as a temporary fix for the next couple of years or not. He is 70 years old so that might be the case. My objection to Barrett would revolve around him being a “Friend of Wayne” and it gives the anti’s more ammunition to accuse the NRA of just being a tool of the firearms industry. If the NRA was going to take a former CEO of a firearms company as the EVP, I think Mike Fifer of Ruger would have been a better choice.

I would also note that not one single reformer is nominated for the Executive Committee. It the Old Guard or the Cabal in its composition. I am a bit surprised that Marion Hammer was nominated for it as she had broken with the Cabal. Also, I see Joel Friedman who couldn’t even win the 76th Director position but only made it back to the Board by the resignation of Carl Rowan, Jr. is given a seat on it.

In other nominations, both John Frazer and Sonya Rowling keep their jobs with Bill Brewer’s guy Robert Mensinger joining as the Chief Compliance Officer. Seems like a good enough pick but he is tainted by association with Bill Brewer. As to Frazer, I perceive him as a nice – but weak – guy who is in over his head. In no other non-profit or corporation would the General Counsel still have the job after a jury found him guilty of violating his fiduciary duties and submitting false filings to a governmental agency. Rowling is, like Frazer, someone who in the end who will do what they are told. Witness the cutting of a check to Brewer’s law firm this weekend even though it devastates the NRA’s finances.

Here is the full report. Make your own decisions about it. In my opinion, it is a big FU to those who want change, those who want transparency, and those who think the members actually count.

An Apology Demanded Of Charles Cotton

This seems to be the night for letters!

Buz Mills, Bill Bachenburg, and Mark Vaughan are demanding that NRA President Charles Cotton issue a public apology to NRA Director Amanda Suffecool. This is for the unprofessional and unbecoming way he treated her at the NRA Meeting of Members on Saturday. At about the 31:25 minute mark of the second video in this post, Cotton challenges the statement from Amanda by saying, “you’ve been on the board, what a year”, as if that made her any less knowledgeable or competent. Amanda was, after all, an engineer for almost 40 years and knows of what she speaks.

Fortunately, the NRA members at the meeting were not having any of Cotton’s crap and booed him quite loudly. Now, the three directors mentioned above have sent out an open letter to all Board members demanding the aforementioned public apology. I could say more about what I think of Cotton as a person and as a supposed leader but I’ll save that for another day.

The full letter is below: