Who Is Not On The Witness Lists

NRA In Danger had a post yesterday on the pre-trial disclosure, witness lists, and exhibits in the NRA’s trial in New York. It appears that all parties with the exception of Josh Powell have produced witness lists and exhibits. Some such as Woody Phillips and John Frazer have relatively short witness lists. For example, Mr. Phillips only lists himself as a witness. By contrast, the witness lists for both the State of New York and the NRA are quite extensive. I have embedded the State of New York’s list as it includes both their witnesses as well as those of the defendants along with estimated time for cross-examination.

I will leave it to NRA In Danger to go into more detail on the pretrial disclosures. What I’d like to point out is who is not on the list.

First, there is Joe DeBergalis who has served for a number of more recent years as the Executive Director of General Operations. One of the issues brought up in the New York Attorney General’s case against the NRA is how “troublesome” people are pushed out. Given he was replaced just this past week, I would have thought he would be an obvious person from who to require testimony. However, both his replacement Andrew Arulanandam and his executive assistant Lisa Supernaugh are on the list for a combined 3.5 hours of questioning plus another 45 minutes of cross-examination.

Next, I am surprised that former NRA Managing Director of Tax and Risk Management Emily Cummins is not on the witness list. She spent over 12 years at the NRA dealing with tax, compliance, and risk management issues. She had raised questions regarding billing by Brewer, Attorneys and Counselors, which became public in 2019. She resigned under pressure from Bill Brewer and his alleged “burn books”. Ms. Cummins has a reputation as an ethical person who actually believed in the mission of the NRA and was greatly concerned over questionable expenditures.

Finally, how can you talk about dysfunction in the Board, sweetheart deals, and friends of Wayne without including Marion Hammer. A friend pointed out to me last night Marion would have been an incredibly hostile witness if called by the New York AG. Heck, she is hostile even on her good days! I can see Bill Brewer making the decision to keep Marion under wraps as she knew too much, helped Wayne too much, and got too much. It is obviously a case of letting sleeping dogs lie or in Marion’s case, cat ladies.

I know New York does not televise court proceedings. That is a shame as watching this trial would have been interesting. Indeed, New York could have made it a pay per view and I’m sure they would been able to offset some of their budget deficits.

Thoughts On NRA General Operations Changes

In the last couple of days I’ve talked to a number of people about the replacement (firing?) of Joe DeBergalis with Andrew Arulanandam as Executive Director of General Operations at the NRA. The people have included both current and former directors, former NRA staff, and outside observers. The one theme that constantly was brought up is the bylaw provision (Article V, Sec. 2 (f)) that the Executive Director of General Operations serves as the interim Executive VP/CEO if the Office of Executive VP is vacant. He or she would then serve until the next meeting of the Board of Directors.

One theory was that Wayne LaPierre wanted an absolute loyalist heading General Operations in order to approve his legal bills in case the New York court removed him as Executive VP and CEO. This is not to say DeBergalis was not a loyalist to Wayne. One person went so far as to say “his head was up Wayne’s ass”.

Another theory that plays off the one above is the Bill Brewer orchestrated the change and wanted “his guy” in that position. One person who had butted heads with Brewer said Arulanandam was an “acolyte” of Brewer. DeBergalis was not considered, I am told, as amenable to the whims of Brewer. Thus, if Wayne is removed, Brewer has someone in position to keep the money flowing to him until it all runs out.

As to the Board of Directors having any advanced knowledge of this move by Wayne, I was told there was none. Jim Shepherd of the Outdoor Wires confirms that in his post today.

Speaking with a current NRA board members, it seems there was no conversation -at least with them- regarding the abrupt decision. DeBergalis, a retired former New York police official, is a former Board member and longtime NRA supporter.

We’ve reached out to him -and others- and have gotten no response as of this writing. If/when we get any insight, we’ll share it with you.

Wayne was within his powers to replace DeBergalis. Article V, Sec. 2 (c) of the Bylaws explicitly gives him that power without any recourse by the Board unlike the Secretary or Treasurer who can only be suspended with pay.

From all I’ve read over the years and the anecdotes I’ve heard, Wayne is a weak man who has a hard time making a decision. He has relied over the years on others to lead him. This has included his one-time BFF Tony Makris, his wife Susan, his late mentor Angus McQueen, and now Bill Brewer. If I had to bet house money, I would say that Bill Brewer convinced Wayne that it was in Wayne’s best interest to replace DeBergalis with Arulanandam. That it was also in Brewer’s interest should go without saying.

The trial in New York begins a month from today and the Board meets in Dallas on January 5th. All I can say is that January will be an interesting month.

A PR Flack In Charge Of NRA General Operations?

You have to be f’ing kidding me. The NRA trial in the State of New York starts in approximately one month and Wayne LaPierre picks now to replace Joe DeBergalis, Executive Director of NRA’s General Operations, with the organization’s PR flack. What in the hell is going on?

Photo: WAVE 3 News

This went out today:

Effective immediately, I have appointed Andrew Arulanandam as interim executive director of NRA General Operations, replacing Joe DeBergalis. We wish Joe and his family all the best.

Andrew has more than 23 years of experience with the NRA, working for the Association and NRA-ILA. He currently serves as the managing director of public affairs. During his career, he has assisted with a wide range of corporate initiatives, messaging and crisis communications programs, and events at the local, regional, and national levels. He held numerous senior leadership positions in private and public organizations before joining the NRA.

Please join me in congratulating Andrew on his new position and in thanking Joe for his service to the NRA.

Wayne

I started hearing a rumor about DeBergalis being ousted yesterday but could not get a confirmation. Now I have nothing against Andrew Arulanandam other than I can never pronounce his name properly but this makes no sense whatsoever. His expertise according to his LinkedIn profile has always been politics and communications strategy.

As I said in the first paragraph, what the hell is going on in Fairfax? And why now?

NRA Trial Date Set (Updated)

Because last week was Thanksgiving Week and it was devoted to family I missed seeing a court notice in the New York AG’s lawsuit against the NRA. It dealt with jury selection and the trial start date.

Judge Joel Cohen has ordered that jury selection begin on Tuesday, January 2nd, 2024 in the late morning. Jury selection will continue day to day until a jury is selected. It will take place in Room 300 of the New York State Supreme Court Building located at 60 Centre Street in Manhattan.

The trial itself will start at 9:30am on January 8th, 2024 in the same courtroom.

Oh, to have the free time (and money) to fly to New York and stay throughout the trial. I don’t know if the trial will be televised but will check on it.

UPDATE: I probably should have checked on this first before originally posting the above. However, I just assumed New York, like most states, had some provision for the audio-visual coverage of most court cases.

As what often happens when you make an assumption, I was wrong.

From Politico:

Trump’s case again highlights how New York has among the most restrictive laws in the nation banning cameras and broadcasts inside the courtroom in most proceedings, a law that dates back to the 1930s. The state Legislature has barely tinkered with it since then. Only Washington D.C. is more stringent on media coverage inside the court, according a report last year by the The Fund for Modern Courts, a nonpartisan nonprofit.

The Village Sun adds that the law banning cameras and recording devices in the courtroom stemmed from the Lindbergh kidnapping trial case in the 1930s.

While there is a bill pending in the New York Senate and Assembly that would allow televising of court proceedings, it has been referred to committee where it remains. Interestingly, the bill is opposed by the NY chapter of the ACLU on the grounds that there is no provision for a defendant to preclude televising a trial. They contend this could impair a criminal defendant’s right to a fair trial.

I guess we will have to rely upon news reports, sketchy as they will be, to know what is going on in the trial day to day.

UPDATE II: NRA In Danger has more on what to expect in the trial now that a date has been set. If what was quoted from a motion transcript carries over to the trial, and there is no reason to expect it won’t, this is not going to be pretty. Even the most ardent backers of Wayne should be cringing over all the dirty laundry of his that will be aired. The old excuse of “well, Wayne told me it isn’t true” just won’t cut it anymore. Those who listened to it and excused his actions should be hanging their heads in shame as they must accept some responsibility for the perilous state of the organization.

An Updated Analysis Of The NRA’s Finances

I have published financial analyses of the NRA by former board member Rocky Marshall in the past. Based upon an audit filed with the North Carolina Secretary of State’s Charities Division by the NRA, he has updated his analysis. I am publishing this with the permission of Rocky.

From Rocky:

RED FLAGS AND REALLY RED FLAGS

  • Revenue continues downward spiral as expenses (mostly legal) will likely increase in 2023-2024.
  • Net Income losses will likely continue 2023-2024.
  • Cash on hand is $12M and monthly expenses are $19M.
  • Recommended minimum cash on hand should be $57M.
  • Additional cash required to cover -$26m projected operating loss for 2023.
  • Additional cash required for contract liabilities of $40M to paid during 2023
  • Additional cash required to cover principal loan payments due in total of $28M during 2024.
  • Line of Credit and other Notes jumped 78%.
  • Increasing debt through loans to cover general operating expenses.
  • Capitalizes computers in excess of $500 and other fixed assets greater than $1,500.
  • Capitalization of purchases is artificially low and reduces expenses in order to boost net income.
  • Assets due from the NRA foundation are $31M and inflate the NRA balance sheet.
  • Most of the NRA foundations assets due have donor restrictions and cannot be used for general expenses.
National Rifle Association Financial Analysis Year Ending 2022    Estimate
(in millions $M)20212022$Change%Change2023
Revenue233.5213.5-20-9%203
Expenses228.2228.60.40%228.6
Net Income5.3-15.1-20.4-385%-25.6
Members’ Dues97.483.2-14.2-15%75
Cash30.412-18.4-61%10
Liquidity Assets65.943.1-22.8-35%34
Note Payable & LOC24.643.719.178% 
Contract Liabilities44.840.2-4.6-10% 
Total Investments717100% 
Total Investments pledges as collateral53.644.2-9.4-18% 
Percentage of Investments collateralized75%62%-13%-18% 

In a marginally related aside, NRA In Danger is reporting that Wayne LaPierre has put his house in Great Falls, VA on the market. The asking price is $2.4 million. NRA In Danger is taking this as confirmation that the powers that be have made the decision to move to Texas. As with the bankruptcy case, the Board has been kept in the dark until it was a done deal. Read his or her full post.

Willes Lee Is Balking On Supplemental Deposition

Now that the New York Attorney General’s Office is requesting a supplemental deposition from Willes Lee due to his social media posts, he is balking. This past Friday, September 29th, Sarah Rogers of Brewer, Attorneys and Counselors, filed a “Memorandum of Law in Opposition” to the state’s motion to compel further testimony from Lee. She included a number of exhibits with this filing including an affidavit from Lee. I should note that Rogers represents the NRA including Lee as a member of the Board of Directors.

The Memorandum of Law in Opposition asserts two main issues. First, it is asserted that the NYAG has failed to show “unusual and unanticipated circumstances” within the meaning of the rules of the court. Second, Rogers says that the NYAG would not suffer “substantial prejudice” if they did not have the supplemental deposition from Lee. Rather, she says it is the NRA and its attorneys who would suffer as it impairs their pretrial preparation especially with intervening holidays. I presume she means Thanksgiving, Hannukah, and Christmas but not Halloween.

The majority of the Memorandum is devoted to the first issue. They assert that Lee’s postings are nothing unusual and that he has not suffered any retaliation from the NRA’s leadership. Moreover, even if Lee’s posting provide somewhat contradictory or inconsistent information from his prior depositions, they say this is not grounds to allow a “post-note of issue” supplemental deposition. They then say differences of opinion within a 76-member board are not unusual and are par for the course. The NRA says that if the Attorney General’s Office wishes to question Lee about his postings, then do it during cross-examination at trial.

So while the arguments by the NRA’s attorneys in response to the motion of the Attorney General’s Office are on interpretations of law, I find the affidavit filed by Willes Lee to be of greater interest. He says he is an unpaid volunteer and that a supplemental deposition would place “an unreasonable burden on my personal and professional schedule.” I’m not sure whether a deposition legally could be done by Zoom or WebEx but will note this court has already had hearings using such electronic means.

I found Paragraph Five of the affidavit to be most interesting.

Moreover, contrary to the NYAG’s motion, my recent social media posts are not “unusual.” In fact, ever since first joining the NRA Board, I have raised questions and posed challenges to the NRA’s leadership, and urged other directors to do the same in the service of the NRA’s members. And since I began posting my “challenges” in a public forum, not a single member of the NRA leadership has tried to silence me.

Given the assertions of Lee that he raised questions and challenges to the leadership as well as urged others to do so were at odds with what I understood, I sought out a number of former NRA directors who served on the Board during this period for their impressions. I sent them a copy of the affidavit and asked if the assertions in Paragraph Five correlated with what they saw and heard. The responses I got cast serious doubt on Lee’s assertions.

One director said, ” I still can’t understand how anybody has taken his self-righteous reversal seriously.  He WAS the cabal. He enabled the CABAL.”

Another director who I asked if Lee had done as he said he did responded, “Nope. I only saw him as a cheerleader for the establishment.” A third director said, “If he ever did anything in the way of resistance to their “plans” it was not in my sight.”

Finally, there is this from a fourth director, “Willis never spoke out at any time on any issue ever! Even during the contentious meeting where the BOD had to ratify the bankruptcy filing after the fact, he sat at the head table like a stone.” He went on to add, “Willis was complicit in his silence and bears as much responsibility in the wrong doing as Charles Cotton because he was on the SLC and did not oppose anything that had occurred. It is rich, that after he was removed as an officer, suddenly he found so much wrong doing.”

While the NRA certainly doesn’t wish that Lee be deposed again, I would wager house money that many of the “Friends of Wayne” would cheerfully throw him under the bus after his spate of social media posts. They would agree with the former directors that Lee never challenged the leadership nor encouraged others to do so. I do understand why Lee doesn’t wish to be re-deposed. His social media rants are not under oath unlike his prior depositions. He could be accused of being a hypocrite but perjury would remain off the table. A supplemental deposition under oath might change things along those lines.

2024 NRA Board Nominations

I received a copy of the NRA Nominating Committee’s list of official nominations for the 2024 Board of Directors election this evening. I cannot say I’m surprised by who is nominated.

There are 28 people nominated for the Board of Directors. Out of these 28 nominees, there are only three who would be new to the Board while the remaining 25 are current directors. Moreover, to illustrate how it is the same people nominated year after year, 23 out of the 25 were also nominated three years ago in 2021. Charles Beers and Rick Ector, current board members, were both first elected in 2023.

The three new nominees are Craig Haggard of Indiana, Susannah Warner Kipke of Maryland, and Gina Roberts of California New Mexico.

Haggard is a Representative in the Indiana House of Representatives representing District 57. According to his official biography, he is a commercial broker, was the NRA field representative for Indiana for six years, and was an aviator in both the Marines and Indiana Air National Guard.

Kipke is the name plaintiff along with the Maryland State Rifle and Pistol Association in the NRA-sponsored lawsuit challenging the post-Bruen restrictions that the Maryland enacted on carry outside the home. She is the wife of Delegate Nic Kipke who represents Anne Arundel County in the Maryland House of Delegates. In addition, she is the owner of Mrs. Kipke’s Secure Gun Storage in Millersville, MD. LinkedIn has her as the senior regional director for Hillsdale College which I assume is a fundraising position.

Roberts has been the California State Director for the DC Project. Unlike the other two candidates, I have met Gina numerous times at the SHOT Show, NRA Annual Meeting, and GRPC. I do know she has been active with the San Diego County Gun Owners. According to her Facebook posts, she is newly employed with Spaceport America, Virgin Galactic’s Gateway to Space, in New Mexico.

Below is the complete list of nominations from the NRA Nominating Committee.

A New Double Secret NRA Lawsuit Against AckMac?

The NRA filed a lawsuit against Ackerman McQueen, Mercury Group, and Tony Makris in the US District Court for the Northern District of Texas. According to the case’s docket number, it was filed sometime in 2022 and it was assigned to Senior Judge A. Joe Fish. The other known facts about the case are that they subpoenaed Tony Makris’ wife Elicia Warner Loughlin for documents and the case is being handled as you’d expect by Brewer, Attorneys and Counselors.

And that concludes what is public knowledge about the case because it appears to be under seal.

Knowledge that the case even existed is due to an article in The Trace by Will Van Zant posted on Thursday. You may not like that he reports for The Trace but he does get his facts correct. He discovered the case when he stumbled across a motion to quash the subpoena to Makris’ wife. That motion was filed in US District Court in South Carolina. Even knowing this, it took me several tries before I could find the motion.

According to the motion to quash the subpoena, it is contended that the subpoena is burdensome because it is overbroad and it asks for information of which she has no knowledge. Her attorney also contends that the subpoena’s secondary purpose is to annoy, embarrass, and harass Ms. Loughlin merely because Tony Makris is her husband. The motion notes that much of the information requested had already been provided to the NRA in their suit against Under Wild Skies in Virginia state court. It should be noted that the NRA lost that case and had to pay a little over a half million in damages to Under Wild Skies. In addition to what was previously provided to the NRA, Brewer is now demanding Ms. Loughlin’s personal and business tax returns for the years 2009-2018.

Ms. Loughlin is also asking for a protective order. As her attorney notes:

UWS is not a party to the above captioned litigation. Mrs. Loughlin is not affiliated with any of the Defendants, except for being married to Mr. Makris. The NRA is going to have to state with some clarity how seeking nine (9) years of tax returns from Mrs. Loughlin and her unaffiliated business entity is in any way related to the sealed action pending in Texas. The same would need to apply to the request for her deposition as she has already sat for a deposition at the request of this same party, the NRA. Quite frankly
nothing has changed since the first time she sat other than the fact that we have a new lawsuit in a different jurisdiction.

At this point it should be pointed out that not only did the NRA lose to Under Wild Skies in state court but ended up settling with AckMac to the tune of $12 million in their previous Federal lawsuit against them.

In his article about the current lawsuit, Van Zant reached out to Judge Phil Journey for comment. Phil said it seemed crazy to him and that if the facts aren’t on your side, you resort to BS.

An expert on sealed cases, Prof. Jane Kirtley of the University of Minnesota said there were usually only three reasons for a case to be sealed: to protect personal privacy, national security, or trade secrets. Prior to coming to the University of MN, Kirtley was the Executive Director of The Reporters Committee for Freedom of the Press

Van Zant quotes her as saying:

Simply wanting to avoid attention is not a valid basis, she said. “People that have disputes don’t have to use courts to settle them, they have other options,” Kirtley said. “The price of admission ought to be that the filing of a lawsuit is a matter of public record, and that if elements of a case are sealed, it’s only for legitimate reasons.”

Kirtley added:

Although judges are not supposed to seal cases merely because the parties would prefer anonymity, Kirtley said that too often they do. “Judges concentrate on the parties before them,” Kirtley said, “and if the parties are content with or agitating for secrecy, some courts don’t care and just go along to get along. But that ignores the fact that the public has an interest in open courts, in how cases proceed, in whether one party gets a break and another does not.”

Having searched for the case under its docket number (3:22-CY-1944-G) as well as a search by name in Pacer, I can confirm what Van Zant has said. No public record of this case can be found. Like him, I found that incredibly strange.

So to conclude, I have a handful of questions.

What is the purpose of this lawsuit by the NRA?

How much is Brewer making as a result of bringing another case against his late father-in-law’s company?

Why is it sealed?

And most importantly, is anyone on the Board of Directors even aware that the NRA is suing Ackerman McQueen again?

The NRA Needs Its Own Independence Day

The National Rifle Association filed their own challenge to the BATFE pistol brace ban yesterday. This was after their attempt to intervene in SAF et al v. BATFE was denied as not timely among other reasons.

The NRA has and has had many excellent Second Amendment attorneys at their disposal. These include scholars such as Stephen Halbrook and David Kopel, appellate attorneys such as Paul Clement and Erin Murphy, and others such as Chuck Michel, David Jensen, and Dan Schmutter. In the past I would have also included the attorneys from Cooper and Kirk but they were considered “disloyal” by Wayne and Company and purged.

So who did they choose to handle their own challenge to the BATFE pistol brace ban? It had to be someone other than the attorney who just lost their motion to intervene, right?

Sadly, they went with William Brewer III again. Instead of going with a strong 2A attorney, they went with the attorney whose primary purpose seems to be to keep Wayne out of jail while getting as rich as possible in the process.

Why I don’t know and no one is saying. Even former 1st VP Willes Lee who has gone from stalwart Friend of Wayne to outspoken critic of the old guard is asking why.

Brewer seems to have the same insidious influence on Wayne and the Board as Rasputin did on Nicholas II and Alexandra. We all know how that ended for the Romanov Dynasty.

The NRA needs to declare its independence from Bill Brewer before he does any more damage to the organization – and the Second Amendment. Unfortunately, as things stand now, I see Brewer riding off into the sunset richer than ever and the NRA in shambles.

Join SAF If You Want Pistol Brace Protection

Less than a half hour ago, I received an email from the Second Amendment Foundation which I found to be brilliant. It arrived while I was still writing my last post. It observed that given Judge Boyle’s denial of intervenor status for the NRA and its members, NRA members can join SAF and get protected by the preliminary injunction like the rest of SAF’s members.

BELLEVUE, WA – The federal judge presiding over a Second Amendment Foundation challenge to the Biden administration’s new arm brace rule has denied a request by the National Rifle Association to intervene in an effort to get the same protections for its members as SAF members have been granted.

However, the order denying NRA’s intervention does not mean NRA members are out of luck, said SAF founder and Executive Vice President Alan M. Gottlieb. They can join SAF and be covered under the judge’s ruling issued last month. The case is known as SAF, et.al. v. ATF, et. al.

“While we’re certain NRA members are disappointed,” Gottlieb said, “by joining SAF they can get the protection of the judge’s ruling.”

SAF offers several different tiers of memberships, available at https://www.saf.org/join-saf/. Annual membership is $15, a five-year membership is $50 and a life membership is $150. Membership is effective upon date of receipt. For questions regarding membership, please contact info@saf.org.

In her ruling, U.S. District Judge Jane J. Boyle wrote, “For intervention as of right, the NRA’s motion fails on two independent grounds. First, the Court finds the NRA’s application for intervention is not timely. Second, the Court finds the NRA’s interests are adequately represented by the current Plaintiffs…In sum, the NRA knew of the Rule more than a year before it moved to intervene, and the NRA had no basis to assume a nationwide injunction would be issued in this case. Moreover, allowing an intervention under these circumstances risks incentivizing opportunistic “injunction shopping” under the auspices of “timely” interventions to protect a threatened interest. The NRA’s Motion is not timely.”

SAF is joined in the case by Rainier Arms, LLC and two private citizens, Samuel Walley and William Green. They are represented by attorney Chad Flores at Flores Law in Houston, Texas.

“We will definitely welcome any NRA members wanting to join SAF,” said Executive Director Adam Kraut.