Monica Connell Archives -

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

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.

Dueling Letters On LaPierre Resignation

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.