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Another AG Weighs In On NRA EVP Succession

January 17, 2024 by

As I posted last week, Texas Attorney General Ken Paxton (R-TX) endorsed former NRA-ILA General Counsel Wade Callender to succeed Wayne LaPierre as the permanent Executive VP and CEO of the NRA. He was joined in endorsing Callender by Texas St. Sen. Drew Springer (R-30th).

Now Callender has been endorsed for the position by Utah Attorney General Sean Reyes (R-UT).

Obviously, two of the state attorney generals who worked with Callender in submitting amicus briefs in support of the NY State Rifle and Pistol Association in the Bruen case think very highly of him. I would not be surprised if more of these state attorney generals weigh in with support of Callender.

This must cause a bit of dismay in Fairfax where those still in denial that there is anything wrong within the NRA seem to be backing Charles Cotton to be the successor to Wayne.

Too bad!

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Analogy Of The Day

January 13, 2024 by 2 Comments

I started hearing rumors as soon as Wayne LaPierre resigned that current NRA President Charles Cotton was jockeying for the position of CEO and Executive Vice President. Personally, I think this would be a travesty and would mark the death knell of the NRA. One merely needs to remember that Mr. Cotton served and continues to serve as head of the Audit Committee for many years while the grifters grifted.

The best analogy on the move by Mr. Cotton to win the EVP position was by my friend Ron Carter who said:

Cotton is clearly the Nikita Khrushchev seeking to seize the opportunity on the death of Stalin….I use the Soviet reference because it sure resembles it. All the yes-men will keep saying yes to the strongest posture regardless of any other criteria.

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Will Texas Politics Impact NRA EVP Succession?

January 11, 2024 by 1 Comment

With so much attention focussed on the trial involving the NRA in New York City, scant attention has been paid to who succeeds Wayne LaPierre as CEO and Executive Vice President of the NRA. I think most observers would agree that Andrew Arulanandam, who will serve as the interim EVP upon Wayne’s January 31st resignation, is a place holder and not a serious contender for the permanent position.

An article by Stephen Gutowski in The Reload posted today may give some clue as to a potential successor. After discussing what I called “the dueling letters” regarding post-employment compensation and health issues of Wayne, Gutowski provides this potential clue.

Prominent NRA supporters have already begun publicly circulating at least one alternative. Former NRA Institute of Legislative Action deputy executive director and general counsel Wade Callender, who helped coordinate with the group’s state affiliate in the successful 2022 Supreme Court Bruen case, has already received the backing of several elected officials. Texas Attorney General Ken Paxton (R.) and State Senator Drew Springer (R.) posted a call for Callender to take over the NRA’s top perch on social media this week.

Callender left the position as General Counsel and Deputy Executive Director of NRA-ILA due, in large part, to the growing interference from the NRA’s outside counsel William Brewer III. Callender confirmed this to me in a face-to-face conversation we held at the 2022 Gun Rights Policy Conference held in Irving, Texas. He has since returned to private practice in Dallas area.

Texas AG Ken Paxton has been a stalwart supporter of the Second Amendment and has signed on to a number of amicus briefs in support of it. Paxton, who was last year impeached by the Texas House of Representatives, was acquitted on all charges in the trial in the Texas Senate. The move to impeach Paxton was led by Texas House Speaker Dade Phelan who is his arch political enemy. Phelan, who is considered a RINO by Texas conservatives, and has been asked to resign by the leaders of the Texas Republican Party.

After the murders of school children in Uvalde, Phelan formed a House Select Committee on Community Safety to review all firearms-related legislation. This included red flag laws and raising the age to purchase a modern sporting rifle. While the committee composition was officially seven Republicans and six Democrats, the Republican chair had been a Democrat until just recently.

With this as a background, Randy Kozuch, Executive Director of NRA-ILA and Chairman of the NRA-PVF, endorsed Dade Phelan and rated him A+.

This brought pushback from a number of conservatives including Dana Loesch who served as a special assistant to Wayne at one time. She said of Phelan that he “was an obstacle while fighting red flag laws, and dragged out our fight to win Constitutional carry.” Others are saying they are dropping their NRA membership or looking for alternatives.

One must wonder who pushed Randy Kozuch to give an A+ rating to Phelan who by most accounts is a RINO and who is marginal on gun rights. Was it the Old Guard on the NRA led by NRA President Charles Cotton who is a Texan? Was it Bill Brewer who saw an ally in a RINO politician who was barely so-so on gun rights? If Brewer, was it with knowledge that it would anger true Second Amendment supporters in Texas?

Giving Phelan the A+ rating and endorsement obviously angered his arch-enemies Ken Paxton and Sen. Drew Springer as the next day they endorsed Wade Callender for EVP. This move by Paxton and Springer is definitely a call for new blood to lead the NRA and a repudiation of the Old Guard.

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Michael Bane On Wayne’s Departure

January 10, 2024 by 2 Comments

I had been waiting for Michael Bane’s weekly MBTV On the Radio podcast on Wayne LaPierre’s departure from the NRA. I was not disappointed.

As he has related in the past and did so again today, he openly acknowledges that he has crossed swords with Wayne over outreach and public relations. That said, Michael said we have needed the NRA in the past and will continue to need them. He also emphasized that we are the NRA and the NRA is not Wayne and not his pack of enablers on the board.

Listen to the first 25 minutes of the podcast here. I agree with him that if Wayne had left in 2019 Wayne might have rode off into the sunset with both his reputation and wealth intact.

If you are not a regular listener, you should be.

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The State’s Opening Arguments In NRA Trial (Updated)

January 9, 2024 by 7 Comments

I am not in New York City for the NRA trial. Given the law in New York forbids any audio-visual broadcast of trials, I will have to rely on reports from the mainstream media and other observers such as Jim Shepherd of the Outdoor Wires.

Monica Connell, Assistant Attorney General of New York, is the lead attorney for the NY Charities Bureau in this case. Her opening statement was made today in court which reportedly lasted for more than an hour.

From the Gothamist which is a news feed from WNYC – New York Public Radio on the opening statement:

Assistant Attorney General Monica Connell said in the state’s opening arguments that executives at the NRA violated both state laws and internal policies by spending excessive amounts of money and then covering up their expenditures. She said the organization’s leaders also “breached the trust” of the donors who “took money out of their pocket” to advance the NRA’s cause.

“They should be able to trust that their hard-earned money they donated will not be used for luxury travel,” Connell said.

Connell’s opening statement detailed some of the steep price tags the NRA’s executives charged to the organization in recent years, including millions of dollars on private flights. She also told jurors about the safeguards that are supposed to prevent nonprofits in New York from mismanaging funds. The assistant attorney general argued the NRA’s leaders worked to undermine those safeguards by lying, retaliating against whistleblowers and hiring high-ranking employees who would be more loyal to corrupt executives than to the mission of the organization.

They also reported that Wayne LaPierre watched on from the gallery which was filled with attorneys, observers, and reporters.

Photo of Wayne arriving at the courthouse – by Brendan McDermid/Reuters

The Guardian has more of Connell’s opening statement to the jury.

“The NRA allowed Wayne LaPierre and his group of insiders … to operate the NRA as ‘Wayne’s World’ for decades,” Connell told a six-member jury that was sworn in earlier in the day, referencing the 1992 comedy movie starring Mike Myers and Dana Carvey.

“Wayne LaPierre and his friends effectively suppressed the voice of anyone who challenged his leadership.

“This case is about corruption in a charity. It’s about breaches of trust, it’s about power. People take their hard-earned money and donate it to charities they believe in. It doesn’t matter what the cause is. They should be able to trust that the hard-earned money they donate is going to advance the mission of that charity.”

Earlier today, the jury was seated. It consists of six jurors and six alternates. All 12 will be in the courtroom for the trial but only six will actually deliberate the charges. Moreover, under NY civil law and practice, a verdict can be delivered if five out of six agree on the verdict. It need not be unanimous.

UPDATE: Jim Shepherd of the Outdoor Wires was in the courtroom yesterday. He gives his impression of the start of the trial here.

From the firing of Lt. Col. Oliver North as NRA President at the now-infamous 2019 Annual Meetings in Indianapolis, to the harassment and retaliation charges of former NRA Board Members Esther Schneider and Phillip Journey, LaPierre was characterized as a man who broached no threats to his authority.

He was also characterized as a man who used the system to his advantage.

With a rudimentary knowledge of accounting and how the NRA’s internal structure operates, specifically in regards to the distinct lines between the National Rifle Association and the NRA-ILA (Institute for Legislative Action), I was confused by the details and accounting practices outlined by the prosecution. One can only imagine the confusion it caused jurors.

But the case appeared effective in one respect: despite occasionally digging deeply into details, it always wound its way back to a pair of key names: Wayne LaPierre and Woody Phillips. Throughout their joint tenure, the NRA coffers were allegedly used as “private piggy banks” for the duo, their chosen subordinates and enabling Board Members.

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DSC Convention Starts Thursday

January 8, 2024 by

The Dallas Safari Club Convention starts this Thursday, January 11th, in Dallas at the Kay Bailey Hutchison Dallas Convention Center. Beyond all the exhibits, the outfitters, the dinners, and the auctions is the educational component with seminars on everything from preparing for your first safari to managing your property for whitetail deer. The seminars are on Friday and Saturday in order to attract the largest audience. I know I will be attending more than one.

The complete list is embedded below. Zoom in to read the descriptions or download it.

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Dueling Letters On LaPierre Resignation

January 8, 2024 by 1 Comment

The resignation of Wayne LaPierre on the eve of the trial in New York has generated letters to Judge Joel Cohen from both sides. In addition, the pre-trial memorandum containing the NRA’s trial brief seems to throw Wayne under the bus after three plus years of defending him.

First, the letter from Assistant Attorney General Monica Connell asserts that Wayne’s resignation has no impact on the viability of the complaint against the NRA and Wayne. She goes on to argue that the NRA should not be allowed to use Wayne’s resignation as evidence that the NRA is cleaning up its act. As to whether his resignation has any relevance, she asserts it should only come up at the remedial part of the case after the jury has decided.

In response, Noah Peters of Brewer, Attorneys and Counselors, asserts, “As the NRA stated in its trial brief, Mr. LaPierre’s resignation undermines the NYAG’s request for forward-looking injunctive relief.” He goes on to imply that the NYAG must now show that the transgressions of the LaPierre era will continue with him gone which is unlikely.

Connell states, in fairness, that the NRA must give answers to some questions regarding Wayne’s resignation before the trial begins. The NRA through Peters does answer those questions. I have put the questions and answers in a point-counterpoint format below with the question in bold and the answer in italics.

What arrangements or agreements Mr. LaPierre has with the NRA or its affiliates regarding his resignation, severance, licensing, consulting or payments directly or indirectly to LaPierre and amounts of such payments;

Mr. LaPierre has no arrangements or agreements with the NRA or its affiliates regarding his resignation, severance, licensing, or consulting;

Any other position Mr. LaPierre holds or will hold within the NRA;

Mr. LaPierre holds no other position with the NRA, nor will he hold a position after his final day;

The NRA’s succession plan following Mr. LaPierre’s resignation;

The NRA’s Head of General Operations Andrew Arulanandam will become the interim CEO & EVP of the NRA until the NRA hires permanent successor;

Confirmation as to whether Mr. LaPierre’s January 2021 employment agreement is still in effect, is being honored by the NRA and whether and what payments Mr. LaPierre will receive thereunder;

After January 31, 2024, payments under the 2021 Employment Agreement will cease. There are no superseding employment or post-employment agreements with Mr. LaPierre;

Any employment, independent contracting, consulting or other work Mr. LaPierre will undertake following his resignation for the NRA or any affiliate, vendor or contractor of the NRA;

Mr. LaPierre will not undertake any other employment, independent contracting, consulting or other work for the NRA or any affiliate, vendor or contractor;

To the extent Mr. LaPierre intends to testify at trial that his resignation was due to a health problem, the nature of the health problem.

The NRA is informed that Mr. LaPierre has chronic lyme disease. The NYAG’s suggestion that Mr. LaPierre’s health condition is not the cause of his departure is false.

I would note that the NYAG never suggested Wayne’s health condition was not the cause of his departure. They merely questioned the timing of his resignation on the eve of the trial. As to chronic lyme disease, the National Institute of Allergy and Infectious Diseases has this on it. They note that many health experts do not like to even use the term. Another NIH article states, ““Chronic Lyme disease,” however, has no clinical definition and is not characterized by any objective clinical findings.”

According to Wayne’s 2021 Employment Agreement that was introduced into evidence back in December 2021, Sec. 4 (e) seems to preclude Wayne from contracting with current NRA vendors or contractors for his services.

Sec. 5 of the 2021 Employment Agreement gives the NRA the option of licensing Wayne’s name, likeness, and signature for up to two years after departure for fundraising, PR, or membership purposes at the rate of $500,000 per year. This option is the NRA’s alone and does not compel them to exercise the option. This section also says they will pay Wayne for in-person public appearances at the rate of $750 per hour.

There has been much speculation about a $17 million “golden parachute” for Wayne. From what I can tell, this came up during a deposition in the bankruptcy trial regarding his 2018 Employment Agreement. Sec. 8 (c) of the 2021 Employment Agreement says it supersedes any prior agreements or contracts. Thus, it would seem to me that there is no $17 million “golden parachute”. Any post-employment monies due Wayne probably would be coming from a 457(f) non-qualified deferred compensation plan which was funded by salary deferrals by Wayne himself and for which he is now eligible to collect.

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Anti-Gunners Don’t Understand

January 6, 2024 by 8 Comments

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.

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Josh Powell Gets His Deal From NY AG

January 6, 2024 by 2 Comments

Josh Powell came to terms with the New York Attorney General’s Office and will be dismissed with prejudice from the case once the deal is approved by Judge Joel Cohen.

Under the terms of Stipulation of Settlement, Powell will:

  • Admit he breached his fiduciary duties of care, loyalty, and obedience by using charitable assets for his own benefit or that of his family;
  • Admit he failed to administer charitable assets entrusted to his care properly;
  • Will pay restitution of $100,000 to be held in escrow for the NRA;
  • Be permanently barred from serving as a director, officer, trustee, or in any role with fiduciary duties for any non-profit or charitable organization incorporated, registered, operating, or soliciting donations in New York State;
  • Agrees to accept service of a subpoena for appearance at the trial;
  • And will be responsible for fees and expenses associated with his testimony at the trial.

Provided that Powell keeps to the terms of the stipulations, the Attorney General’s Office will dismiss him from the lawsuit with prejudice. They will also consider it a resolution of all claims against him. The agreement then goes into great detail of what would be considered a breach or voiding of the agreement including denying that the case is without factual basis. If the agreement if breached or voided by Powell, he can expect the AG’s Office to come after him with a vengeance.

We have been expecting this for a few days. The only surprise to me is that Powell now resides in San Juan, Puerto Rico. Using Google Maps street view, it appears to be in a building with a wine shop on the first floor next to a Wendy’s.

I have embedded the full Statement of Stipulation and Order of Dismissal below.