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Another Illegal Bloomberg Mayor

November 23, 2019 by 1 Comment

Yet another member of Mayor Bloomberg’s Illegal Mayors has been arrested. Muncie, Indiana Mayor Dennis Tyler was arrested by the FBI on Monday for accepting a $5,000 bribe to steer a public works contract.

From the Muncie Star-Press:

The 76-year-old Tyler was indicted last Wednesday by a U.S. District Court grand jury on a count of theft of public funds. The indictment was then sealed, setting the stage for the mayor’s arrest by FBI agents Monday morning at his northside Muncie home.

“Public officials are entrusted to perform a public service and to legitimately conduct business in the best interest of the community that they represent,” U.S. Attorney Josh Minkler said Monday. “Tyler not only betrayed the trust of his community, but violated federal law, and all in an effort to serve his own personal interests.

“My office intends to prosecute Tyler to the full extent of the law.”

The FBI has been investigating corruption in the Muncie mayor’s office and the sanitation department since 2016. Seven others have been indicted since them for taking bribes, kickbacks, wire fraud, and other Federal charges.

As a side note, you would have had to wait until the 29th and final paragraph in the story to learn that Tyler was a Democrat.

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2018 NRA Executive Compensation

November 22, 2019 by 1 Comment

When looking at compensation, you have to look beyond mere salaries and bonuses. Total compensation includes both salaries and bonuses but it also includes things like deferred compensation, group life insurance, contributions to retirement plans, and taxable personal expenses.

I was finally able to get a copy of the 2018 Form 990 for the National Rifle Association. This is the tax report that all not-for-profits must file with the Internal Revenue Service. Both 501(c)(3) and 501(c)(4) organizations are included in this category. The NRA itself is a 501(c)(4) which allows it to engage in political campaign activities while the NRA Foundation is a 501(c)(3) and is not allowed to engage in political campaign activities.

Below is a table of the 12 most highly compensated NRA officials ranging from Wayne LaPierre at the top to Director of Education and Training Eric Frohardt at the bottom. If you click on the icon on the bottom right of the embedded spreadsheet, it will open the full spreadsheet.

In the notes of page 3 of Schedule J of the Form 990 is this explanation of how compensation is determined.

Compensation of the NRA’s top management officials is established by methods including independent compensation consultants, compensation surveys and studies, and comparability data. In addition, under the NRA Bylaws compensation of certain elected officials (including the Executive Vice President) must be approved by the Board of Directors, based on recommendations by the compensation committee. All decisions are properly documented.

I have posted the 2018 Form 990 here for reference.

Since comparability data is one criterion used in establishing these officials compensation, I thought I’d look first at publicly traded firearms companies to see how they compensated their top managers. Their compensation is divided into two portions: cash compensation and equity (or stock) compensation. Equity compensation is used to align the interests of managers with that of stock holders.

At Sturm, Ruger and Company, CEO Chris Killoy had a 2018 salary of $500,000 with a profit sharing bonus of $60,324 and a performance bonus of $503,000. His total cash compensation was $1,063,324. Stock awards raised his total compensation to $2.1 million. Killoy manages a company with over 2,000 employees with plants in three states. By contrast, the NRA has somewhere between 500 and 1,000 employees. The base salaries of the other top managers at Ruger ranges from $240,000 to $325,000.

James Debney, CEO of American Outdoor Brands Corporation, had a higher salary in 2018 but no cash bonus. His cash compensation was his salary of $734,039. He did receive a substantial stock award which raised his total compensation to $2.2 million. He manages a workforce of 1,853 employees. Meanwhile, the base salaries of American Outdoor Brand executives range from a low of $283,000 to a high of $402,000 for the CFO.

When you look at other politically active 501(c)(4) organizations like the Sierra Club and Planned Parenthood, the compensation of their executives is substantially less than that of the NRA. For example, Cecile Richards who was the CEO of Planned Parenthood had a total compensation of $1,033,274 from all sources. Meanwhile, the Sierra Club paid Executive Director Michael Brune a total of $333,797 and their CFO about $250,000.

When looking at the compensation of the top managers of the NRA, it is critical to look beyond Wayne LaPierre and Chris Cox. Those two are (or were in Cox’s case) very highly compensated as you might expect. However, it is the salaries of next level down that are really concerning.

Who in their right mind could justify paying Josh Powell over $900,000 with a base salary greater than the CEO’s of either Ruger or American Outdoor Brands? Powell is the guy responsible for the debacle of NRA Carry Guard, the guy the NRA spent money on to settle his sexual harassment problems, and the guy who has run multiple companies into the ground. It is ridiculous!

When you compare the salaries of the managers one level down from Wayne to that of virtually any comparable manager in a publicly traded small cap company, there is no comparison. The NRA managers are compensated beyond the level of their position and responsibility. If I had to hazard a guess, they are being compensated as much for their loyalty to their master – Wayne – as for the work that they actually do. This is just not right and sadly I see no change coming in the near to mid future.

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NRA’s 2018 Form 990 For Reference

November 22, 2019 by

I have embedded the NRA’s most recent Form 990 below for reference. I received a copy of it today. It also has the New York State CHAR500 and other financial tables appended. It totals a bit over 100 pages.

I will be referring back to this page over the next few days as I dig into the Form 990.

NRA-2018-990 by jpr9954 on Scribd

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A 5.56 FAL?

November 20, 2019 by 2 Comments

Yes, there really was a FAL in 5.56×45. It was the SAR-4800 made by Imbel in Brazil and imported by Springfield Armory. According to Ian McCollum of Forgotten Weapons, only about 700 were imported into the United States and these came with those ugly post-ban thumbhole stocks.

He discusses the history of it while examining one that was converted to the FAL Para configuration. While it probably is a bit heavy, it is still pretty cool.

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Stag Arms: Goodbye Connecticut, Hello Wyoming.

November 18, 2019 by 3 Comments

Stag Arms announced two big changes today. Chad Larsen has been selected to be the new President of Stag effective immediately. On top of that, the company is relocating from New Britain, CT to Cheyenne, WY. The relocation will be completed by the end of 2019.

Stag Arms had announced in June their intention to leave Connecticut. They had previously thought about moving in 2013. However, due to family and supplier ties, Mark Malkowski, then president, decided to remain in New Britain. This time they were serious and began a national search.

In making today’s announcement, Elie Azar, Founder and CEO of White Wolf Capital, LLC, which owns a controlling interest in Stag
Arms, said: “We decided it was time to do a complete refresh of the Company. We needed to solve for three things: visionary
customer-centric leadership, a business-friendly, pro-growth economic environment, and a cultural climate that reflects Stag’s brand
image of independence and free spiritedness. I am pleased to report that we have found a solution that hits all these points.”


To find a new location for the Company, Stag’s Board of Directors conducted a rigorous process comparing dozens of potential sites
against a stringent set of criteria. “Cheyenne came out on top on most of the individual criteria,” said Azar, “and considering our
requirements as a whole, it was by far the superior site. Not only is Wyoming an incredibly hospitable place to do business, it is also a
top destination for outdoor recreation, including hunting and shooting sports, which reflects its citizens’ unwavering support for the
Second Amendment.”

Gov. Mark Gordon (R-WY) was understandably pleased.

I am pleased to welcome Stag Arms to Wyoming and to know that our state came out on top of a broad look at potential new homes for the sought-after company. We have a deep-seated commitment to the Second Amendment that I will continue to uphold.

When Stag Arms announced their intention to leave Connecticut, business development officials for Cheyenne and the State of Wyoming didn’t waste any time reaching out to them. They helped with site location, workforce evaluation, and introduction to the community.

New president Chad Larsen comes to Stag from Aero-Precision where he headed new product development. This is not that surprising given that White Wolf Capital also owns Aero-Precision and Ballistic Advantage.

Azar noted, “Chad’s innovative genius with the Modern Sporting Rifle
platform stems from his personal emersion (sic) in the shooting and hunting community. He knows what customers want—and what they
don’t—because he is one of them.” Mr. Larsen is both an avid hunter and a registered 3-Gun, Multi-gun and USPSA competitor.

As yet another firearms company leaves “Gun Valley” thanks to high taxes, a poor business climate, and antipathy to firearms, what had been the center of the firearms industry is slowly becoming a shadow of its former self.

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“His contributions to the NRA have been transformative.”

November 16, 2019 by 5 Comments

“Wayne LaPierre’s compensation reflects his enormous contributions to our members and the freedoms for which they fight,” NRA President Carolyn Meadows said in a statement. “His contributions to the NRA have been transformative.”

The statement from Mrs. Meadows come in response to reports in the Wall Street Journal, the New York Times, and the Washington Post about Wayne LaPierre’s reported compensation in 2018. This comes from the not-yet public Form 990. That form is a financial report that all not-for-profits must file with the Internal Revenue Service annually.

The AP reports:

According to the filings, known as 990s, longtime NRA CEO Wayne LaPierre’s total compensation rose to more than $2 million. His base salary went from $1.17 million to $1.27 million, he received a bonus of about $455,000, and he got about $366,000 from a deferred compensation plan, according to the documents cited in media reports.

The story from the Wall Street Journal notes that revenues rose 13% while expenses rose 7% for the year. It also noted that Brewer, Attorneys and Counselors, was paid $13.8 million in legal fees making it that third-largest NRA vendor. The largest vendor for 2018 was, as may be expected, Ackerman McQueen.

Ackerman was the largest outside vendor, having been paid $32 million, plus $6.3 million for out-of-pocket expenses, including media buys and “reimbursement of travel and business expenses.”

Given past reports regarding LaPierre’s use of AckMac to disguise his actual spending, I wonder how much of the reimbursement was for his personal expenses.

In addition to the reports on LaPierre’s compensation was this note in the Washington Post on the monies spent by NRA-ILA.

Spending by the political arm of the NRA dropped from $47.1 million in 2014 to $32.51 million in 2018, the filings show. That was the midterm election in which Democrats took over the House and gun-control groups outspent the gun lobby for the first time.

That is very concerning. The monies spent – or in my opinion, wasted – on Brewer, Attorneys and Counselors, could have been used to support the campaigns of pro-gun candidates.

I will be requesting a copy of the 2018 Form 990 from the NRA Secretary’s Office. I have a feeling that it will contain many more unwelcome revelations.

As to the comment from Mrs. Meadows with which I started this post, I agree with her last sentence. LaPierre has been transformative for the NRA. However, if the last few years are any indication, it is not in the way that Meadows means or that you and I would want.

NOTE: If any of my readers has a copy of the 2018 Form 990 or a link to it, please send to me at jpr9954 AT gmail DOT com.

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More On S&W Changes

November 15, 2019 by

American Outdoor Brands Corporation held a shareholder update webcast on the plans to split the company. The webcast last for about 30 minutes if you want to listen to it. It can be found here.

I have embedded the slides for the presentation below. It shows which brands will go to Smith & Wesson and which brands will stay with American Outdoor Brands.

AOBC CEO James Debney acknowledged there had been significant changes in the political, financial, and insurance arenas over the past five years. Based on that, they decided it was in their best interest to separate into two distinct companies. It should be noted that the decision to make the split was in the works for many months. The timing of the announcement which the day after the Supreme Court’s denial of cert to Remington was merely coincidental.

AOBC Spin Off Deck Nov 2019 by jpr9954 on Scribd

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Domestic Terrorists? Not So Fast

November 14, 2019 by 2 Comments

I came across an interesting article yesterday. It was from the Canadian group Organization for World Peace. The article by Abhishek Kumar discussed the labeling of the NRA as “domestic terrorists” by the San Francisco Board of Supervisors. His conclusion is that such labeling is out of place. Mind you, Kumar is no fan of the NRA and the Organization for World Peace leans left.

Kumar notes that the labeling of the NRA as a domestic terrorist group has a political, not objective, purpose. By such labeling, San Francisco sought to “subvert the political and social influence of the NRA by undermining its legitimacy.” The goal is to reduce the power of the NRA’s opposition to more gun control.

The politicisation of labelling the NRA a “domestic terrorist organisation” raises concerns regarding the subjectivity of terrorism through which personal interests seem to be unavoidable. Terrorism inherently is perceived through an accompanied political narrative, however, San Fransisco city’s ruling appears to reflect broader political and social tensions. The NRA embraces the second amendment and actively promotes gun ownership, however, this does not fit the criteria of being a ‘domestic terrorist organisation’. Following the FBI’s definition of domestic terrorism, the NRA does not promote or encourage the commission of violent crime as a result of extremist ideologies. It does, however, stand on hard-line policies in regards to gun ownership.

He goes on to add that legislative bodies should refrain from such resolutions.

Following this idea of political interests, legislative bodies should refrain from designating opposing actors as “terrorist organisations” in order to fulfil political goals and delegitimise political opponents. While increased social tensions regarding gun violence cultivate an environment to hold an individual or organisation responsible, it important to not address domestic terror attacks and weapons used to enact those attacks as a single issue.

Kumar concludes that gun ownership is a national security issue. But, he adds, the promotion of gun ownership does not make the NRA or other groups responsible for “extremist ideologies, specifically the increasing right-wing extremism.”

I doubt Kumar and I would see eye to eye on most issues including the need for more gun control. I also question the notion that “right-wing extremism” is really on the rise or is any more prevalent than that coming from the left such as Antifa. However, I do agree with him that labeling political opponents as “domestic terrorists” based on policy differences is dangerous and ought not be done.

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S&W To Become Free-Standing Company

November 13, 2019 by

American Outdoor Brands Corporation announced today that it planned to separate into two publicly traded companies. One company would be focused on firearms (Smith & Wesson) while the other company would be dedicated to outdoor products (American Outdoor Brands). The split would be finalized in the second half of 2020 according to the press release.

Bloomberg reports that the split is part of “an effort that may help it boost values that have flagged under pressure for gun reforms in the U.S.” “Gun reforms” is the euphemism that Bloomberg is using for gun control.

While something like this would have been in the works for months, I find it interesting that the announcement is being made the day after the Supreme Court denied cert to Remington. Bloomberg does make reference to this in their article as well as moves by retailers such as Dick’s and Walmart to limit what firearms and ammunition they sell.

The official rationale for the split is to let each segment concentrate on their separate markets.

The purpose of the spin-off is to enable the management team of each company to focus on its specific strategies, including (1) structuring its business to take advantage of growth opportunities in its specific markets; (2) tailoring its business operation and financial model to its specific long-term strategies; and, (3) aligning its external financial resources, such as stock, access to markets, credit, and insurance factors, with its particular type of business.

AOBC Chair Barry Monheit said, ” There have been significant changes in the political climate as well as the economic, investing, and insurance markets since we embarked upon what we believe have been our very successful diversification efforts.” It is obvious to me that Monheit is speaking about both national and state efforts to impose more restrictions on firearms ownership and possession.

The move by American Outdoor Brands is similar to that of Vista Outdoor. In that case, Vista Outdoor was the firearms-centric portion of the ATK split. While initially the stronger part of the split company, the pull back in firearm and ammunition sales hit it hard. They finally sold off the Savage Arms portion of the business this summer to concentrate on ammunition and the other outdoor portions of their business.

James Debney, the current CEO, will become the CEO of American Outdoor Brands. Mark Smith will become CEO of Smith & Wesson. He is currently the president of the Manufacturing Services Division of AOBC.

The entire press release can be found here. It goes into much more detail on the lower leadership positions, finances, etc.

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Remington Denied Cert (Updated)

November 12, 2019 by 7 Comments

The US Supreme Court has denied a writ of certiorari to Remington in their appeal of the Connecticut Supreme Court’s ruling. That ruling allowed the lawsuit by some of the families of the Newtown murders against Remington to go forward. The Connecticut Supreme Court had said Remington would not be protected by the Protection of Lawful Commerce in Arms Act.

The denial was in the Order List released this morning.

As I mentioned earlier, the anti-PLCAA forces had brought out the big legal guns with Obama’s former Solicitor General. His argument must have swayed enough justices that they voted against taking the case.

You can read more about the Connecticut Supreme Court’s ruling in the case here.

This means that the lawsuit against Remington will go to trial in Connecticut Superior Court and that the plaintiffs can go on a fishing expedition through Remington’s records.

To be blunt, this denial of cert sucks. It turns on its head the supremacy of Federal law and makes a mockery of a law passed by Congress to prevent exactly what the plaintiffs are seeking to do.

UPDATE: Dave Hardy, 2A scholar and attorney, gives his take on the SCOTUS denial of cert in the case. He still thinks the plaintiffs have a long way to go before they win.

Big point: the trial court dismissed the suit for “failure to state a claim.” This is the first stage at which a suit can be reviewed. Dismissal is only proper if it is based on the pleading, bare written allegations. The CT Supremes said only that it couldn’t be, at this stage. Plaintiff still have to prove their allegations (after discovery, they can be challenged by a motion for summary judgement, and if that’s denied, fought at trial). The CT Supremes even allowed that plaintiff may have to surmount “herculean” barriers to win.

I’ll defer to Dave given his long experience as an attorney.