NY Court Update And Some Suggestions

NRA In Danger reported yesterday evening that the meeting in the NYAG’s office between the attorneys for both parties would be continued. They will meet again on Monday, August 19th, to hammer out the consent decree. The goal is to present it to Judge Cohen by August 27th. If neither party can agree, they will each present their versions.

Much more interesting in the report was a joint letter that Buz Mills and Rocky Marshall sent to Judge Cohen. The letter states that the leaders of the NRA who have not accepted responsibility “misuse and malfeasance of NRA members’ donations” (Barr, Cotton, etc) do not speak on behalf of the NRA, the majority of its directors, nor its members. They go on to state that elected leaders such as Doug Hamlin, Bill Bachenberg, and Mark Vaughn are being kept out of the negotiations with the NYAG’s office. Finally, Buz and Rocky present what they feel should be in the final decree that would meet with the judge’s six dicta.

It is beyond obvious that the time for a Special Litigation Committee is over. Wayne is gone and John Frazer is no longer the General Counsel. Thus, the rationale for it being established is over. One thing being requested in the letter is that Judge Cohen order it dissolved. That said, this should have come from the Board the moment John Frazer was no longer the General Counsel.

A friend suggested to me yesterday that Doug Hamlin should fire Bill Brewer and his firm immediately. He went further to suggest that Hamlin order Sonya Rowling not to cut or sign any checks payable to Brewer or his law firm. If the Executive Committee were to suspend Hamlin as a result, he thought Andrew Arulanandam would serve as interim EVP. I pointed out that the position of Executive Direct of General Operations is vacant and the bylaws do not provide an immediate replacement for the EVP. Things could get interesting.

Giving it some serious thought, I would go further than my friend. If, as has been suggested by the letter from Buz and Rocky, that duly elected officers of the NRA had been kept out of the negotiations and thus unable to perform their fiduciary duties, then it is time for hardball. By hardball, I mean that they should file bar complaints with the New York State Bar against Bill Brewer, Sarah Rogers, Svetlana Eisenberg, and Noah Peters. Preventing officers and directors of a non-profit corporation from doing their legally required fiduciary duties under NY law is a serious offense. It certainly should be grounds for a bar complaint. I should note that a similar complaint currently exists with the Virginia State Bar against John Frazer from his actions while General Counsel.

I would not be surprised if Judge Cohen demands some answers sooner than later.