Wayne LaPierre

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NRA Hasn’t Decided Yet To Collect The Money Wayne Owes?

July 16, 2024 by 5 Comments

NRA President Bob Barr was on the stand today in the second day of the remedial phase of the New York trial. According to Erik Uebelacker of Courthouse News, Barr just said moments ago that the NRA has not yet decided if they will actually try to collect the $4.4 million the jury said Wayne owes.

What do you mean you haven’t decided to try and collect the money Wayne looted from the NRA?

WTF, Bob! That’s the members’ hard-earned dues and contributions we are talking about.

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What Goes Around, Comes Around

July 16, 2024 by 1 Comment

The bench phase of the NRA’s trial in New York City opened today. The first witness to take the stand was former NRA President Charles Cotton who now chairs both the Audit and Ethics Committees. Among the things he included in his testimony was the following regarding succession planning according to AP reports.

Charles Cotton, an NRA board member, was the first witness to take the stand. He revealed that the organization did not have a succession plan in place when LaPierre announced his retirement in January, just before the start of the trial’s first phase — suggesting his exit was hasty and not expected.

If only they had listened to one of their members who offered a resolution asking the Board of Directors to draft and adopt a formal succession plan. That resolution was offered at the NRA Meeting of Members held in Tucson, Arizona in October 2020. Mind you that this was in the midst of the Covid-19 pandemic and the most vulnerable population included senior citizens like LaPierre. That meeting was being run by 1st VP Charles Cotton as then-President Carolyn Meadows was absent due to health concerns.

As you can probably guess by now that resolution was soundly defeated. One of the arguments offered against it was that the NRA Bylaws provided a succession plan in that the Executive Director of General Operations would take over as the Interim EVP and CEO. This is exactly what happened when LaPierre resigned. Another argument was that the NRA was not the same as a for-profit corporation where succession planning is a best practice.

Among those testifying against the resolution in favor of succession planning was Joel Friedman who now sits as Vice-Chair of the Ethics Committee. Friedman is also a member along with Charles Cotton on both the Bylaws and Resolutions Committee and the Finance Committee. He is only on the Board now because Carl Rowen, Jr. was convinced to resign in order to allow Friedman to ascend to a directorship.

This truly is a case of what goes around, comes around.

As to the Endowment Life member who offered that serious resolution of succession planning, it was me. Perhaps if the Board had listened to the members instead of kowtowing to the Cabal, the NRA wouldn’t be in the position it is now.

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The NRA, LaPierre, And Frazer Appeal

July 8, 2024 by 6 Comments

Attorneys for the NRA, Wayne LaPierre, and John Frazer all filed appeals in People of New York v. National Rifle Association of America et al on Friday. They are appealing Judge Cohen’s decision and “order on motion” in which he denies their motions to set aside the jury’s verdict and enter a judgment for them as a matter of law. Frazer’s motion was to only set aside part of the jury’s verdict but that was also denied. Attorneys for Wilson “Woody” Phillips had filed a similar motion to set aside the verdict but are not appealing. As noted earlier, it appears he has settled with the New York Attorney General’s Office.

The appeals will go to the Appellate Division of the Supreme Court of the State of New York, First
Judicial Department. That same court has denied all previous appeals made by any of the defendants and have upheld all of Judge Cohen’s rulings in this case. The Appellate Division is the intermediate appellate level in New York State with the Court of Appeals being akin to Supreme Courts in other states.

Noah Peters of Brewer, Attorneys and Counselors, is arguing on behalf of the NRA. His argument centers around whether there enough evidence to find that the NRA payments for Susan LaPierre’s hair and makeup, to David Keene, and to Woody Phillips were anything other than “de minimis”. He goes on to question whether people like Phil Journey, Craig Spray, Rocky Marshall, Ollie North, and others should really be considered “whistleblowers”. Finally, he questions whether the jury had sufficient cause under New York’s Executive Law to find the NRA submitted false filings.

The attorney for Wayne, Kent Correll, is arguing that the Attorney General lacked the “power, authority, capacity or standing to seek or procure a judgment” under New York law to seek monetary damages against an officer of a not-for-profit, to seek the removal of such officer, and to bar the re-election of a person who is no longer employed by the non-for-profit. He also attacks the sufficiency of the evidence against Wayne.

John Frazer’s appeal argues that since the jury did not find grounds for either monetary damages or removal from office, it erred in finding he failed in his fiduciary responsibilities. Moreover, since no claim of false statements were made against the NRA’s accountants, they should not have found he knowingly signed off on a false filing.

Given the past history of appeals in this trial, I really don’t seeing any of these defendants winning their appeals. Moreover, with the exception of Frazer who is essentially fighting to stay employed, I think the other appeals are going through the motions because a) they will generate more billable hours and b) for the public relations aspect of it. Wayne is fighting to say he really wasn’t a grifter and the NRA is trying to assert that the jury should never have agreed with the Attorney General because, you know, she hates us and wants us gone.

Vendetta or no vendetta, the attorneys for New York had a strong case against the NRA and the individual defendants. Josh Powell and Woody Phillips have realized it and settled. That the NRA has not settled like that did with the Attorney General for the District of Columbia is a shame. I think what they will get now in terms of punishment is going to be worse than if they had settled. The only winners are the attorneys who will rake in even more fees that are being paid out of members’ dues or, at least, that is the case for sure with regard to the NRA. Who is paying the fees for Wayne and Frazer and whether it will ultimately be the NRA is up in the air.

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Nepotism Lives On At The NRA

March 9, 2024 by 9 Comments

One might be under the impression that the NRA has cleaned up its act, put new procedures in place, is respectful of the member’s money, and that the misdeeds of the LaPierre era are never to be repeated. Indeed, that is the premise of the NRA attorney’s arguments as they head into the next phase of the New York trial. Attorney Sarah Rogers of Brewer, Attorneys and Counselors, wrote in a letter to Judge Cohen, “The remainder of the trial should focus on the sole remaining triable issue of fact: whether any of the statutory violations established in the jury phase are continuing or are imminently likely to reoccur.”

Unfortunately, as I found out yesterday from multiple sources, regardless of the new procedures, nepotism and the disrespect for the members’ money lives on at the NRA. That is because a mere 21 days after Wayne LaPierre’s resignation from the NRA became effective, his niece Colleen Sterner was promoted to be Director of Events for Advancement. She will continue to live and work from her home in Nebraska. According to my sources, insiders are saying her salary is estimated to be in the $300,000 range.

Making the promotion was Tyler Schropp, the Executive Director of the NRA Office of Advancement, and the second highest compensated employee at the NRA according to the NRA’s 2022 Form 990. His total compensation was reported to be $854,219. As exhibits in the New York trial make clear, Schropp went by the “Wayne said/Wayne OK’ed it” modus operandi and actual procedures and documentation be damned.

The NRA Employee Handbook, Sec. C1.12, states that relatives of current employees including nieces and nephews can be hired if qualified. Sterner was first hired by the NRA in 2015 to work for the Women’s Leadership Forum which was led by her Aunt Susan (LaPierre) on a volunteer basis. Sterner supposedly helped organize “national events” but, as an article in The New Yorker points out, her assignments tended to be basic tasks such as helping out with registration.

According to Andrew Arulanandam, an N.R.A. spokesperson, Sterner “played a leading role in producing” the affair. Yet one of the summit’s organizers told me, “I’d never met Colleen before the event started, but Susan had mentioned she’d be part of the staff. She didn’t work at headquarters, and she wasn’t on the regular planning calls or meetings that we had. Her status was never clear to me.”

Internal N.R.A. records show that Sterner was assigned a half dozen basic responsibilities, such as providing “registration support as needed” and serving as a point of contact for a trap and skeet shooting activity. Multiple people who worked the summit said that it was often difficult to locate Sterner.

The article in The New Yorker by Mike Spies which includes many interviews with NRA employees casts serious doubts on her actual work for the NRA. This correlates with what my own sources have told me about Sterner. I would say read the entire article and make up your own mind about whether Sterner is now qualified for a $300,000 director level position. While Spies does write for The Trace and I would disagree with much of his conclusions, the guy gets his facts correct.

The private jet and helicopter flights that the jury in the New York trial found Wayne LaPierre liable for repaying include those that diverted to Nebraska to pick up Sterner as well as a helicopter flight to a NASCAR race in which her husband Terry was a passenger. It is also why Wayne was found to have breached his fiduciary duty under the Non-Profit Corporation Law.

The NRA is currently recruiting for a Meetings Manager. This would be at least one level below a director. Requirements include a college degree, 5+ years of experience, and preferably hold the Certified Meeting Professional designation. Part of the job requirements including contract review and negotiations. Unless I am grossly mistaken, I just don’t see Sterner holding the requisite qualifications other than, perhaps, a college degree.

One has to wonder if the promotion of Sterner to be Director of Events for Advancement was not a quid pro quo negotiated by LaPierre with Schropp in his final days at the NRA. It would not surprise me in the least if it were. Given that Judge Cohen was reportedly leaning away from appointing a monitor to oversee the NRA, this could and should give pause to that. It is more evidence that new leadership is needed, that the house (including upper level NRA managers) must be cleansed, and that the Old Guard and their supporters cast out if the NRA is to be saved as an effective Second Amendment organization. Members, current, former, and future, are not going to donate unless this happens.

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NRA Trial – It Is Now In The Hands Of The Jury

February 16, 2024 by 2 Comments

The trial began on January 8th with the attorneys for the New York Attorney General’s Office making their case against the NRA, Wayne LaPierre, Woody Phillips, and John Frazer for breaches of the Estates Powers & Trust Law, breaches of fiduciary duties under the Not-for-Profit Corporation Law, related party transactions, violation of New York’s whistleblower law, and false filings. Josh Powell had earlier entered into a plea agreement in which he pleaded guilty and agreed to pay $100,000 in restitution. The state’s case was concluded on February 5th and then the attorneys for the NRA and the individual defendants began to make their cases for acquittal. Finally, today both sides gave their closing arguments and the jury will begin deliberation tomorrow.

In the interim, Wayne LaPierre’s reign over the NRA ended on January 31st. He announced his resignation on January 5th. One thing I did notice almost immediately after LaPierre’s announcement is that the attorneys from Brewer, Attorneys and Counselors, went from “keeping Wayne out of jail” to saying it was “all Wayne’s fault”. They have argued that Wayne, Woody, and company kept the NRA Board of Directors in the dark and, as such, the NRA can’t be held responsible for their actions.

The New York Attorney General’s Office’s Second Amended Complaint listed 15 causes of action against the NRA and the individual defendants. At the conclusion of the state’s case, attorneys for the NRA asking for a directed verdict saying, in effect, the Attorney General’s Office had not proved their case. Likewise, attorneys for the individual defendants argued that they were not liable under some of the causes of action. This past Monday, February 13th, Judge Cohen ruled on these motions. He rejected the NRA’s argument that the 1st Cause of Action – Breach of the Estates Powers & Trustees Law be dismissed over “vagueness”. He dismiss similar causes of action (6, 7, and 8) against the individual defendants holding that they could not be classified as “trustees” under the EPTL. With the exception of the related party transaction involving LaPierre which he dismissed today, all the other charges against the individual defendants remain.

One thing that has been often overlooked is that the victims in this case are those of us that are members of the NRA. Beyond paying for the private planes, suits, and trips for LaPierre, it has been our dues and contributions that have been used to pay the legal bills for both the NRA and the individual defendants. While I can’t speak for Woody Phillips, I am sure that both LaPierre and Frazer will submit bills to the NRA for their legal expenses to be reimbursed under the Directors and Officers insurance policy. This would be over and above what is being spent with Brewer, Attorneys and Counselors where it takes approximately the dues from 22 annual members to pay for one hour of legal representation.

I will cover the closing arguments in a separate post in order to keep this post from being too long.

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Quote Of The Day

February 2, 2024 by

While I have been following the NRA’s trial in New York, I have been holding off writing about it until the New York Attorney General’s Office has rested their case. Based upon what I have read, that appears to be this coming Monday, February 5th. There is a lot there and I want to make sense of it all before tendering my complete opinion.

That said, the quote of the day comes from Stephen Gutowski of The Reload. It involves the testimony of NRA Secretary and General Counsel John Frazer.

Stephen wrote:

In it, the NRA’s top lawyer defended his integrity. When asked if LaPierre had breached his trust when he failed to disclose his now-admitted use of NRA funds for personal expenses, Frazer said he wouldn’t characterize it that way.

“I think Mr. LaPierre has always been very open and honest with me in terms of communications that we would have and then trying to rectify the issues,” he said.

But, when asked if LaPierre breached the trust of NRA members, he took an agonized pause before responding.

“I’d have to say probably yes,” Frazer testified.

LaPierre walked slowly out of the courtroom–and the NRA–on that note.

While I am glad that Mr. Frazer is finally recognizing that Wayne LaPierre breached the trust of the NRA members, it is sad that Frazer is only now coming out and saying it. His fiduciary duty which included a duty of loyalty was to the organization which means the members and not to Wayne LaPierre. He is not alone in that breach of fiduciary duty. There are many members of the Board of Directors who likewise breached their duty in their loyalty to Wayne instead of the members. Whether it was due to ignorance or a willful choice, it really doesn’t matter.

The victim in this trial has never been the state of New York. It has always been the members of the NRA who paid their dues and donated what they could to the organization because they believed in the mission. In return, they were used as the personal piggy banks to support the avaricious lifestyles of the Millies, the Waynes, the Susans, and those of their ilk.

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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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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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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.