Anti-Gunners Don’t Understand

If you read the comments from the anti-gun forces yesterday on the resignation of Wayne LaPierre, you would have thought it was all their doing. Moreover, they think this portends a shift in attitudes towards gun control such that gun owners will now joyfully join with the prohibitionists to urge passage of nonsensical gun control laws.

The tweet below and the response is the reality.

I’ve long said to the Complementary Spouse that the gun prohibitionists are not going to like what they get if they destroy the NRA. The successor organizations such as GOA, SAF, and FPC will be much less likely to want to compromise on the Second Amendment. Now is the time for the NRA to get its act together, reform the Board, and become the meaningful organization in terms of both training and 2A advocacy that it can be.

From The NRA On X

Click on “show more” to get the full release posted on X or what used to be called Twitter by the NRA on Wayne’s resignation and the elevation of PR flack Andrew Arulanandam to interim CEO.

Wayne LaPierre Resigns!

Just minutes ago it was announced that Wayne LaPierre would resign as Executive VP and CEO of the National Rifle Association effective January 31st. According to a report in the Wall Street Journal, health is the cited reason for his resignation.

Fox News has this from the released statement:

“With pride in all that we have accomplished, I am announcing my resignation from the NRA,” LaPierre said in the NRA’s press release, which was exclusively obtained by Fox News Digital. “I’ve been a card-carrying member of this organization for most of my adult life, and I will never stop supporting the NRA and its fight to defend Second Amendment freedom. My passion for our cause burns as deeply as ever.”

The report goes on to say that Andrew Arulanandam will serve as interim CEO and EVP of the NRA. As was told to me a month ago, Arulandandam was considered an “acolyte” of Bill Brewer which does not bode well for the NRA.

LaPierre had this to say about Arulanandam as his successor according to Fox:

What makes the NRA unlike any other advocacy organization is the depth and experience of its professional team, the unwavering support of its members, and its fighting spirit. I have enormous confidence in our board of directors, executive leadership team, and my long-time colleague Andrew Arulanandam. Andrew knows every facet of this organization and has stood shoulder-to-shoulder with me in every arena imaginable. Andrew knows how to help the NRA win – he’s been one of the key authors of our playbook for decades,”

There had been some speculation about the called Board of Directors meeting being held in Dallas today. One was whether they were going to declare bankruptcy again. While that is still in the cards given their financial issues, it is obvious that having Wayne resign on the eve of the trial “for health reasons” is part of the legal strategy going forward. I have heard that many on the Board were surprised by Wayne’s resignation. However, I am told that when Wayne took the microphone last night at the Chairman’s cocktail party, it was pretty much a goodbye speech.

A former director speculated to me that they thought this was a move to get a settlement with a wrist slap and the Board “will continue stupid”. Unfortunately, he may be correct.

As this is a developing story, I am sure I will have more later.

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?

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.

NRA Still Wants A Jury Trial In Manhattan

Judge Joel Cohen ordered all the defendants and the New York AG’s Office to give a response on the matter of how the trial should be held. That is, should it be a jury trial or not? The responses from both sides were received this past Friday (July 28th).

Surprisingly, the NRA is sticking to their demands for a jury trial. I am in agreement with NRA In Danger that this is insane. A jury trial for the NRA in Manhattan is the equivalent of a jury trial for Donald Trump in DC meaning a totally unbiased jury pool is virtually impossible to find.

According to the response embedded below, the NRA is asking that a jury trial be held to determine the facts on all the causes of action against the NRA. These would include improper administration of assets, waste, and fiduciary failures. They are claiming they are entitled to this by right. Then, after the jury has determined the facts, the NRA says they would be amenable to having Judge Cohen determine equitable relief. In other words, they want a bifurcated trial with the jury portion coming first.

This is also the position of the attorneys for Wayne LaPierre, Woody Phillips, and John Frazer.

The Attorney General’s Office agrees in part and disagrees in part with the call for a jury trial. Whereas the defendants are saying all the facts should be determined by a jury trial, the Attorney General agrees that should be only for causes of action 2 to 5 and 10 to 14. They contend on the first cause of action as well as causes of action 6 through 9 that they are not triable by a jury under New York law. They present a chart breaking this down found here in the appendix starting on page 9. So in one sense, all involved agree that a bifurcated trial – part by judge and part by jury – is called for. The difference is that the defendants want a jury trial to determine the facts in all the causes of action.

You will notice that the discussion above omits Josh Powell. That is because the attorneys for Powell filed a motion on July 13th to withdraw as counsel. Akin Gump Strauss Hauer & Feld LLP has represented Powell since the beginning of the proceedings. Powell in a separate filing gave his consent to this. A few days later Akin Gump filed motions to keep parts of the reasons for withdrawal under seal or non-public. Judge Cohen has temporarily put these under seal until a hearing can be held on August 7th.

On July 25th, the AG’s office filed a response to Akin Gump Strauss Hauer & Feld LLP’s withdrawal as counsel for Josh Powell. They took no position on Akin Gump’s withdrawal, insisted that Powell get a new attorney sooner than later, and that Judge Cohen should deny the motion to keep keep the reasons for withdrawal under seal. They assert that Akin Gump has not met it burden for sealing their submissions.

Reading closely, the reason Akin Gump and Powell are going separate ways is financial. The AG’s response said, “Powell’s Defense Counsel moved to be relieved, citing Powell’s inability to pay its legal fees.” Now that is interesting.

They also say that Powell should have only 14 days to retain a new attorney given how close the case is to going to trial. If he cannot, they say Powell should act as his own attorney or pro se in legal terms.

So to conclude, the NRA et all insist on a jury trial on all facts, the AG says only on some parts, and Josh Powell seems to have run out of money to pay his legal bills.

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.

2023 NRA Meeting Of Members – Resolution 3 (Updated)

The third resolution presented at the 2023 NRA Meeting of Members generated the most comment. It was a resolution from Jeff Knox that expressed no confidence in Wayne LaPierre as the Executive Vice President.

After NRA Secretary John Frazer read the resolution, Charles Cotton asked for those for and against it to speak. Those speaking in favor of it were Jeff Knox, Rob Pincus, John Carr, and Michael Mc (missed the rest of his name.)

When it came to speaking against it, the Friends of Wayne on the Board fought one another to express their confidence in Wayne as well as to attack Jeff either directly or through innuendo. These included Tom King, Mark Robinson, David Keene, Joel Friendman, and Jay Printz. There were two others that spoke against it but one of those was a comedian similar to Jason Selvig in 2022.

Here is Jeff’s resolution which failed again in 1/3 aye, 2/3 nay vote.

Resolution of No Confidence in Wayne LaPierre

Submitted by Jeff Knox, Endowment Life Member, Arizona

April 15, 2023

Whereas the NRA has seen a dramatic decline in Annual Members over the past 4 years, with sources indicating a drop of close to 30%, and

Whereas the NRA has experienced a significant declines in revenue over the past 4 years, with sources indicating declines of almost 50%, and

Whereas, between the years 2015 and 2018, the unrestricted net assets of the NRA declined by over 60 million dollars, and

Whereas 2018 saw financial belt-tightening, and the total collapse of the NRA’s heavily promoted, and very expensive Carry Guard program, which had only been introduced a few years earlier, and

Whereas, the advent of the SARS COV 2 pandemic caused layoffs of some 400 NRA employees, along with announced reductions in executive and managerial pay of 20%, and

Whereas, during this time of austerity measures, layoffs, significant financial losses, and growing legal expenses, in 2018, Wayne LaPierre, as Executive Vice President and CEO of the NRA, received a significant pay increase and a four hundred and fifty five thousand dollar “bonus,” bringing his total compensation that year to more than 2.2 million dollars, up from the 1.4 million he received in 2017, and for 2019 and 2020, while the layoffs and pay cuts were being implemented, Mr. LaPierre received compensation of approximately 1.7 million dollars each year, and

Whereas, along with this generous compensation, Mr. LaPierre received numerous other perks, including chartered, corporate jet travel at an average cost of seven thousand dollars per hour, limousine service, luxury accommodations, and a substantial expense and entertainment account, all totaling well over an additional million dollars per year, and

Whereas the National Rifle Association’s positions and objectives are supposed to be based on certain unwavering principles, beginning with the fact that the right to arms is an unalienable, fundamental, individual right, bestowed by our creator, and enshrined in the Constitution, and that restrictions on inanimate objects can never control the behavior of persons with evil and criminal intent, and

Whereas Mr. LaPierre, in his capacity as Executive Vice President of the NRA, publicly declared in 1999 that the National Rifle Association believes in “absolutely gun free, zero tolerance, totally safe schools.  That means no guns in America’s schools, period, with the rare exception of law enforcement officers or trained security personnel,” and

Whereas, at other times, while serving as Executive Vice President of the NRA, Mr. LaPierre has declared the NRA’s support for the creation of an “Instant Background-Check System,” declared the NRA’s support for laws requiring background checks for all firearm sales at gun shows, declared NRA support for so-called “red flag” laws, which provide for the confiscation of firearms from people accused of being a threat to themselves or others, with only bare consideration of due process, and declared that “the NRA believes that… (bump-stocks) …should be more tightly regulated,” and

Whereas President Trump subsequently acted on that last statement of support from the NRA, resulting in the Bureau of Alcohol, Tobacco, Firearms, and Explosives declaring bump-stock devices to be “machine guns,” effectively banning them under the Hughes Amendment, and

Whereas, while serving as chief lobbyist for the NRA, when the Hughes Amendment was attached to the Firearm Owners Protection Act as a “poison pill,” Mr. LaPierre asked the Republican Senate to agree to the amendment in order to pass the law, and asked President Reagan to sign the law, and subsequently stated that repeal of the Hughes Amendment would be the NRA’s number one priority going forward, but has never taken any substantive action toward repealing this travesty of a law, and

Whereas Mr. LaPierre has testified in court and on tax documents that he improperly charged personal and other unauthorized travel on multiple flights on chartered jets, and other unauthorized expenses to his NRA account, and

Whereas the various disclosures, revelations, and numerous substantiated accusations that have come out about Mr. LaPierre in recent years, along with his lack of principled stands on critical rights issues, have damaged the reputation of the National Rifle Association and its members, and have destroyed Mr. LaPierre’s personal credibility, severely limiting his abilities as a fund raiser or a political influencer on behalf of the NRA and its members, therefore, be it

Resolved, That the members here gathered for the 152nd Meeting of Members of the National Rifle Association, here gathered in Indianapolis, Indiana on this 15th day of April, 2023, do hereby declare that we have No Confidence in the ability of Wayne LaPierre to lead this organization going forward, and while we appreciate his contributions to the fight for rights over the past 40 years, we call on him to resign his position as Executive Vice President and to not seek reelection to that, or any other leadership position in the NRA at any time in the future, and, be it further

Resolved, That we call on the NRA Board of Directors to recognize the will of the members and ensure that Mr. LaPierre is not reelected to the office of Executive Vice President, or elected or appointed to any other office of importance within the National Rifle Association or its affiliated organizations, nor be awarded any contract or employment by any NRA-related entity, and, be it further

 Resolved, That the Secretary is instructed to cause a full, legible copy of this Resolution to be printed in the Official Journal of the Association within 120 days of the close of this meeting.

UPDATE: I did record Jeff Knox and Rob Pincus speaking in favor of this resolution. Their videos are below. In the one with Rob, you will seek Lt. Gov. Mark Robinson (R-NC) giving a loud defense of Wayne. While I like Mark, I find it incredibly sad that he had “drunk the Kool-Aid”.

Tweet Of The Day

The tweet of the day comes from F-111 John in response to Tom Gresham on the “dear employee” letter sent out by Wayne LaPierre yesterday.

I must say I agree with his sentiment.