NRA Special Meeting (Update)

Rumors started on Sunday with a report by Dan Zimmerman of TTAG about Wayne LaPierre’s speech to CPAC. After saying that Wayne’s speech was old and stale, he concluded with this teaser, “The good news is, we happen to know that the NRA is actively seeking his replacement.”

Then yesterday, John Crump who writes for Ammoland.com had a tweet saying to “prepare for some big NRA news on or around March 14.”

The March 14th date was interesting because there was no hearing set on that date in either the NY Attorney General’s dissolution case nor in the NRA’s bankruptcy case.

It turns out that NRA President Carolyn Meadows has called for a special meeting of the Board of Directors to be held in Dallas on March 14th.

March 2, 2021

                                                                  OFFICIAL NOTICE

                                SPECIAL MEETING OF THE BOARD OF DIRECTORS

TO:      Board of Directors and Executive Council

            The NRA President has called for a special meeting of the Board of Directors to take place on Sunday, March 14, 2021, at 10:00 a.m. in Dallas, Texas.  The sole purpose of the meeting is to provide a briefing to the Board regarding the NRA’s reorganization plan and the legal matters overseen by the Special Litigation Committee, and to take any necessary action directly related to those matters.

   The NRA Board of Directors and Executive Council and will meet at the Omni Dallas Hotel, 555 South Lamar Street, Dallas, Texas 75202, (214) 744-6664.  The date, time and location of all meetings are on the attached schedule of meetings and meals.  [Special Note:  The special meeting of the Board of Directors will start at 10:00 a.m. Daylight Savings Time on Sunday, March 14. Daylight Savings Time begins at 2:00 a.m. on Sunday, March 14.  On Saturday night, remember to set your clocks forward one hour (i.e., losing one hour) to “spring ahead.”]

Members in attendance are authorized reimbursement for ordinary and necessary expenses actually incurred on the following basis:

If I had to speculate – and that is always a dangerous thing – I would say that it is a move to get the Board of Directors to explicitly approve the filing for bankruptcy. You may remember that Judge Phillip Journey made the point in his motion for a court-appointed examiner that the directors’ never voted to file bankruptcy. Further, bankruptcy law expert Prof. Adam Levitin wondered if the Board had shirked its fiduciary duties by not explicitly approving a bankruptcy filing.

As the after the fact approval of many expenditures by the Board’s Audit Committee makes clear, the NRA Board has a history of approving things after the fact that should have had explicit pre-approval. This could be one of those ex post facto approvals. I would be the most surprised person in the room if it was actually to announce a replacement to Wayne LaPierre. I just don’t see a Board packed with Wayne loyalists doing that.

UDPATE: A friend who knows the NRA bylaws far better than me just pointed out something about this special meeting. According to Article IV, Section 3 (b), while the President, the Executive Committee, or the majority of the Board can call a special meeting, it has a notification requirement.

From the NRA Bylaws:

Notice of the time, place, and object of such special meetings shall be mailed to each Director at least 30 days before the date of holding such meetings.

Now I know that the NRA Bylaws don’t mean much to Wayne and company but you would think that given both the dissolution lawsuit and the bankruptcy proceedings that dotting the I’s and crossing the T’s just might be the smart way to go. I don’t know if the Board is getting their advice from William Brewer III, NRA General Counsel John Frazer, or the Board’s attorney Wit Davis but whomever said it was OK to ignore the bylaws either doesn’t give a big rat’s ass or is an idiot.

Either way, anything voted on and decided in this Special Meeting of the Board could be challenged in court as being invalid due to violating the bylaws.

“She Works Hard For The Money”

The latest filings in the NRA’s bankruptcy case contain a treasure trove of information. This is especially true for the NRA’s statement of financial affairs. It goes well beyond a mere balance sheet and includes a complete list of payments and distributions to insiders. Insiders would be the officers of the NRA as well as all members of the Board of Directors.

Reading through the list, most of the payments are recruiter payments. While I might quibble on whether or not directors or their organizations should be compensated for bringing in new members, it is a relatively minor thing and the amount of money was not material (using an accounting term).

Bearing in mind that 2020 was a horrible year, financially and otherwise, for many people, there is one person who did rather well in 2020.

Marion Hammer.

Ms. Hammer received $246,500 in direct payments for “consulting services”. In addition, she received another $183,600 in indirect payments made to United Sportsmen of Florida for a “consulting agreement.” (See pages 53 and 54 of the NRA’s filing.)

As Donna Summer sang, “She works hard for the money.
So you better treat her right.”

Being Wayne LaPierre’s No. 1 defender and attack cat (she is a cat person) is hard work. He must have thought so which is why she got $430,100 of member’s money in an effort to treat her right.

NRA Board Member Asks For Examiner

Attorneys for Phil Journey, a state judge in Kansas and a NRA Director, filed a motion in the NRA’s bankruptcy cased today. The motion asked the court to appoint an examiner (or independent investigator) to examine claims against the NRA made by the NY Attorney General Letitia James. These claims were made in the suit seeking the NRA’s dissolution.

Journey says he fully supports the NRA’s mission of protecting the Second Amendment through “education, training, and sport.” He then says:

Accordingly, Movant (Journey) seeks the appointment of an examiner to bring to light the veracity of the alleged fraud, dishonesty, incompetence, and gross mismanagement that has plagued the NRA’s reputation, caused significant alienation of the Association’s members and supporters, and hampered its ability to fulfill its core organizational purpose.

He then lays out the areas which he wants the examiner to investigate:

The best path to ensure that the NRA seizes upon the opportunity before it to recommit to its most historical ideals is to appoint an independent examiner to add transparency and confidence to the bankruptcy process. To that end, Movant requests the appointment of an examiner to examine and investigate: (i) the actions of Debtors’ pre- and post-petition management; (ii) the management practices being employed in the operation of the non-profit organization; (iii) the compensation of management; (iv) the benefits and perks being provided to the Debtors’ management team; and (v) the propriety of arrangements with certain vendors.

Journey goes on to accuse the NRA’s management of using Ackerman McQueen and other vendors as conduits to hide personal expenses and perks. He then says the Board has become a figurehead while “management” aka Wayne LaPierre actually steered the direction of the NRA.

He alleges the bylaws were violated by not having the Board of Directors to vote on the bankruptcy filing nor was the intent to seek Chapter 11 even disclosed to the Board. He goes on to note that the NRA’s management routinely ignored the bylaws, the laws of New York, and Robert’s Rules of Orders which led to Craig Spray resigning and the designated head of reorganization deciding not to take the job. Furthermore, the formation of Sea Girt LLC was not approved by the Board. Journey says information was withheld by management and the Board’s attorney which made it impossible for them to do their fiduciary duty.

The legal rationale along with case law is then presented in the argument as to why an examiner is needed.

I will be blunt. I always thought Phil Journey was a Wayne LaPierre loyalist which is why he got nominated and elected to the Board of Directors. This is either a measure of his disgust with Wayne, Brewer, and their cronies or the ultimate sleight of hand to divert attention elsewhere. Given what is in the motion, I’ll go with the former for now.

I fully expect Brewer and company fight tooth and nail against this. He did issue this statement to Bloomberg News on Journey’s motion.

The NRA disputed the claim that it didn’t follow its own rules when it filed bankruptcy. It didn’t directly address the question of whether an examiner should be appointed.

“This plan was undertaken in full compliance with NRA policy,” NRA lawyer William A. Brewer III said in an email to Bloomberg. “The plan has been widely endorsed by NRA board members, NRA members, elected officials, and other key stakeholders.”

I think this motion will get very serious consideration from Judge Harlin Hale for two reasons. First and foremost, Phil Journey is a sitting judge in a state court in Kansas. That alone elevates his concerns above that of a mere bystander. Second, he is now and has been in the past a director of the NRA. I think that would give him standing as he has a fiduciary duty.

For now, it will be very (very!) interesting to see what comes of this motion. I hope it succeeds and I hope the creditor’s committee is successful in getting a trustee appointed.

I have embedded the full brief below. Read it for yourself and tell me what you think.

Motion To Appoint Examiner In NRA Bankruptcy Filing by jpr9954 on Scribd

Yeah, It’s The Trace But…

It sucks but sometimes you can get more timely and accurate information on what is happening with the NRA from Bloomberg’s The Trace than from the NRA itself.

I had noticed yesterday that Judge Phillip Journey of Kansas, a NRA Director since 2020, had secured representation before the bankruptcy court as a “creditor”. I thought it kind of strange but then there was this in today’s The Trace.

Grumblings from the NRA board?: Phillip Journey, a judge in Kansas who won his seat as an NRA director in 2020 and also served on the group’s board in the 1990s, notified the Texas court hearing the gun group’s bankruptcy case that he’s secured representation in the case. My colleague Will Van Sant notes: “I’d heard recently that Journey and a handful of other board members have concerns about actions taken by the NRA’s current leadership.” Journey has indicated he may take further action in the case, but offered no details.

It could be that Journey and some others are seeking to be a “white knight” and save the NRA leadership from itself and the ambitions of William Brewer III. I guess we will know soon enough.

In other NRA news from The Trace, I learned that the US Judicial Panel on Multidistrict Litigation had turned down the NRA’s request to consolidate all their cases into US District Court for the Northern District of Texas. That includes the Dell’Aquila class action suit in Tennessee, the NRA’s suit against Letitia James in New York, and two AckMac related suits in Texas.

The panel said that despite the NRA’s assertion of factual overlap they just didn’t find enough to warrant moving the cases to Texas. Lest you think the panel was filled with anti-2A judges, Judge Roger T. Benitez whose rulings in California have been fantastic is a member of the panel.

The full decision can be found here.

NRA Bankruptcy Updates

In the last week and half there have been a number of updates in the NRA’s Chapter 11 bankruptcy case. I will take them in order.

First, there was a debtor’s motion (the NRA) to allow Brewer, Attorneys and Counselors, to serve as special debtor’s counsel in the case. While the entire filing is 53 pages long, here are some excerpts. It should be kept in mind that the NRA has retained Patrick Neligan of Neligan LLP as its bankruptcy specialist attorney. Mr. Neligan has been practicing high-level bankruptcy law for over 35 years.

BAC and its attorneys are well-positioned to handle these matters for the Debtors because BAC has accumulated a reservoir of knowledge that could not be efficiently offloaded to, or replicated by, substitute counsel.

One way of looking at Brewer’s statement is that they know where the bodies are buried. I don’t think that is their intention but it could be read that way and they are needed to keep them buried.

In 2020 and in 2021, BAC’s standard hourly rates were as follows:
Professionals 2020 Hourly Rates
Founding Partner, William A. Brewer III $1,400
Partner $700-$900
Associate $275-$600
Consultant/Analyst $250-$725
Investigator $250-$350
Public Affairs $375-$800

Are their fees capped?

Did you agree to any variations, or alternatives to, your standard or customary billing arrangements for this engagement?
Response:
Yes. For one of the matters, BAC agreed not to seek fees for its professionals’ time inexcess of $100,000.10 In addition, BAC represents the NRA in another matter pro bono. Otherwise, BAC has not agreed to any variations or alternatives to BAC’s standard or customary billing arrangements. BAC’s engagement by the Debtors in connection with the Debtors’ bankruptcy cases is to serve as special counsel to the Debtors in the litigation that began PrePetition and other related matters BAC has been handling for the Debtors, as well as to assist Neligan LLP (lead counsel to the Debtors) during a transition period after the filing of the chapter 11 cases in order to facilitate the quick, efficient handling of matters drawing on BAC’s institutional knowledge.

In other words, with regard to one aspect of the case they will limit their fees as per agreement to $100,000 but after that the sky is the limit.

Remember that the bankruptcy filing has put many of the NRA’s other cases on hold so Brewer, Attorneys and Counselors has got to make their money somehow.

The Special Litigation Committee of Carolyn Meadows, Charles Cotton, and Willes Lee think having Bill Brewer involved is just dandy and they are all for it. Then again, they pretty much do as they are told by Wayne LaPierre.

Moving on, a mailing list of all additional creditors of the NRA was filed with the court on Monday, February 1st. Included in that 247-page list was the NRA Foundation. It should be remembered that most of the firearms in the National Firearms Museum and the National Sporting Arms Museum are not property of the NRA. Rather, they are on loan from primarily the NRA Foundation as that was to whom they were gifted by donors.

In a February 2nd report by Reuters on the latest hearing in the case before Bankruptcy Judge Harlin D. Hale, attorney Patrick Neligan denied the Chapter 11 filing was in bad faith.

“This is not a bad faith filing and we look forward to using Chapter 11
to resolve litigation and to move forward to emerge out of this
bankruptcy as a company domiciled here in Texas,” Neligan said
during Wednesday’s hearing.


The question of whether the NRA filed the bankruptcy in good faith could arise if the judge is asked to dismiss the case.

Judge Hale did ask both the NRA and the NY Attorney General’s Office to scale back the rhetoric and treat this as “a regular bankruptcy case.”

The US Trustee in the case appointed an Official Unsecured Creditors Committee consisting of five members. The Pension Benefit Guaranty Corp. was appointed the interim chair of the committee. As seen in the screen shot below, two of the committee appointees will probably cause a bit of consternation in Fairfax as well as in the offices of Bill Brewer.

I sincerely doubt that either AckMac or David Dell’Aquila are going to roll over and play dead for Wayne and the NRA.

Finally, in an interview posted today in FreeBeacon.com by Stephen Gutowski, Mr. Dell’Aquila says he will be pushing for a court-appointed trustee to oversee the NRA’s operations.

“We’re going to definitely do a motion for a trustee,” Dell’Aquila said. “I would not be surprised if the majority of the other creditors don’t join or do a similar thing.”

The article goes on to note that the court could appoint a trustee and that such a trustee would have broad powers. That trustee could “displace” the current leadership and the board. Moreover, the trustee would have the fiduciary duty to act in the best interests of the creditors and could go after Wayne and others for misuse of the NRA’s money for personal expenses.

“It’s in everybody’s best interest to get a trustee in there, certainly from the creditors’ point of view, and, I would argue, even for the five million members because every dime that they waste in frivolous litigation is a dime less that could go to the core mission,” Dell’Aquila said.   

As might be expected, attorney Bill Brewer who had previously dismissed the idea of a trustee back in January expressed his disappointment that Dell’Aquila was on the committee.

“The NRA is disappointed that a disgruntled individual who has filed frivolous claims against the Association is appointed to the committee,” Brewer told the Free Beacon.

Dell’Aquila’s attorney Elliott Schuchardt said that even with some of the defendants dismissed in Dell’Aquila’s class-action suit, the remaining claim against the NRA is worth $64 million potentially making it the largest creditor.

“We think there’s enough evidence of fraud here that we can make a good faith argument to the bankruptcy court judge that somebody else should be running the NRA,” Schuchardt said. 

I have always held that this bankruptcy filing was a gamble. Wayne and Brewer are too clever by half and I think the result will not be to their liking.

There is another hearing scheduled in the case for Wednesday, February 10th by WebEx. I’m sure we will hear something more then.

NRA CFO Resigns

Craig Spray, CFO and Treasurer of the National Rifle Association, has resigned. I found out the news on late Friday afternoon. Spray had been CFO since 2018 when Wilson “Woody” Phillips retired. He had previously been the CFO of furniture maker Knoll, Inc.

I have not seen any official announcement of it but I have gotten it from multiple sources including from a Director.

The official story as far as I can tell is that Spray resigned for health reasons. He had a heart attack sometime in the past. If you remember, back in 2018 Spray had to step aside for a few weeks due to health issues and the infamous Josh Powell was named acting CFO.

Rumor also has it that Spray learned of the NRA’s bankruptcy filing in the Texas at the same time as the Board of Directors were notified. That is, after the fact. Chief financial officers are usually the key individuals involved when an organization declares Chapter 11 bankruptcy. If that is indeed the case, it is enough to cause one to ask WTF?

More On The NRA’s Bankruptcy Filing

There was a very interesting and informative blog post regarding the NRA’s bankruptcy filing on CreditSlips.org on Friday. The post was by Georgetown law professor Adam Levitin. Levitin is an expert on bankruptcy and business restructuring. His list of publications regarding bankruptcy includes both law books and multiple law review articles.

The post says there are many issues with the filing:

This is going to be one heck of an interesting case. There are already so many glaring issues (or should I say “targets”?): venue, good faith filing, disclosures, the automatic stay, the trustee question, fiduciary duties to pursue claims against insiders, executory employment contracts, the fate of Wayne LaPierre, and the generally overlooked governance provisions of the Bankruptcy Code.

Read the whole post. The gist of it is that by filing for bankruptcy, the NRA has opened a can of worms and there could be a lot of unintended consequences. For example, if as the NY Attorney General alleges, Wayne LaPierre has a contract that guarantees his salary for life even if removed, bankruptcy law limits that to one year’s salary.

I hope this is the last post I have to do on the NRA filing for bankruptcy for the time being. There are other important matters to write about such as the virtual Shot Show that starts today.

Clues To NRA’s Legal Strategy

Attorney Sarah Rogers of Brewer, Attorneys and Counselors, filed a “Notice of Suggestion” before the US Judicial Panel on Multidistrict Litigation yesterday. It was in regard to the NRA and Sea Girt LLC’s filing for Chapter 11 bankruptcy in the US Bankruptcy Court for the Northern District of Texas.

From the Notice of Suggestion:

Section 362(a) (Automatic Stay) of the Bankruptcy Code automatically prohibits, inter alia, the following:
* the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title;
* the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title;
* any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate.

I think that tells you exactly what the legal strategy formulated by William Brewer III is for the NRA. It is to use bankruptcy as a means to stop or put a hold on the cases involving Ackerman McQueen, David Dell’Aquila, and the State of New York. That is, at least in Federal court.

It gets more interesting according to a book put out by the American Bankruptcy Institute entitled, Bankruptcy Issues for State Trial Court Judges Third Edition.

Federal law allows the removal of civil actions from state court to federal district court if jurisdiction exists under 28 U.S.C. §1334 (the federal jurisdictional provision that creates a bankruptcy case). The petition for
removal must be filed in the district court to which the matter is removed. Removal is to the federal district court for the jurisdiction in which the state court matter is pending, not to the district in which the bankruptcy case is pending. Consequently, if the bankruptcy case is in a different federal district, a motion for change of venue to that district may be filed after the matter is removed.

The book goes on to say that this applies to all courts, state and Federal. However, if you examine the case against the NRA by the Attorney General of New York Letitia James, it probably is might be stayed against the NRA but not against Wayne LaPierre, Woody Phillips, John Frazer, or Josh Powell. That is because a §362 stay applies to the property of the estate, property of the debtor, and the debtor. The individuals named by James in the dissolution lawsuit are not debtors in a bankruptcy filing.

However, there is an exception to a §362 that I’m sure the State of New York will seek to use:

The commencement or continuation of an action or proceeding by a governmental unit to enforce its police or regulatory power. Examples would be prosecution under a rubbish ordinance, an action to close a restaurant for health code violations, or litigation to determine the debtor’s liability for consumer protection violations and liquidation of the amounts owed for those violations. The exception extends to enforcement of a judgment, other than a money judgment, obtained by a governmental unit to enforce its police or regulatory power. Section 362(b)(4)

The regulatory power involving the NRA would be that of New York’s ability to regulate charities which is the basis of the dissolution suit. It will be up to the judge hearing the dissolution lawsuit to decide whether the stay resulting from the bankruptcy filings apply. I’m sure that New York will argue that it doesn’t just as the NRA’s lawyers will argue that it does.

I should remind the reader that I’m not a lawyer and that case law usually is of greater importance than the how the law is written. In other words, how a law is interpreted by the courts trumps how the legislature wrote the law.

Wayne’s Letter To The NRA Board

An email went out at 4:01 pm EST this afternoon from NRA Secretary John Frazer to the Board of Directors announcing the bankruptcy filing and plans to reorganize in Texas. According to the time stamp on the bankruptcy filing, it was filed at 2:48 pm CST or less than 15 minutes earlier.

The email repeats much of what was reported in the press release.

Dear Board of Directors:

I am pleased to announce some exciting news about the NRA. 

The NRA announced it will reorganize the Association as a Texas nonprofit to abandon the corrupt political and regulatory environment in New York. This action will ensure our continued success as the nation’s leading advocate for constitutional freedom.

To facilitate the reorganization, the NRA and one of its subsidiaries filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division. As you may know, chapter 11 proceedings are often utilized by businesses, nonprofits and organizations of all kinds to streamline legal and financial affairs. 

Subject to court approval, the NRA’s new strategic plan involves “dumping New York” and reincorporating the Association in the State of Texas – home to more than 400,000 NRA members and site of the 2021 NRA Annual Meeting being held in Houston.

As many of you have observed, New York is no longer a welcome home to our Association, as its leaders have demonstrated their hostility to the constitutional freedoms in which we believe. Our filing today allows us to wisely seek protection from New York officials who illegally weaponized the powers they wield against the NRA and its members.

The NRA is not financially insolvent. In fact, this move comes at a time when the NRA is in its strongest financial condition in years.

The Association will continue with the forward advancement of the enterprise – confronting anti-Second Amendment activities, promoting firearms safety and training, and advancing public programs across the United States. No immediate changes are expected to the NRA’s operations or workforce.  

The reorganization aims to help the NRA streamline costs and expenses, organize various litigation matters that involve related facts, and realize other financial and strategic advantages.

By exiting New York, the NRA abandons a state where elected officials have weaponized legal and regulatory power to penalize the Association and its members purely for political purposes.

The Battle in New York

As you will recall, in summer 2018, New York Attorney General candidate Letitia James vowed that, if elected, she would use the powers of her office to investigate the NRA. Without a shred of evidence supporting her claims, James called the Association a “terrorist organization” and a “criminal enterprise.” As promised, she commenced an “investigation” upon being elected to the Office of NYAG and, predictably, filed a lawsuit seeking to dissolve the NRA just prior to the November 2020 national election.

In response to the anti-freedom actions of the NYAG, the NRA filed a lawsuit in August 2020 against the NYAG similar to its lawsuit against New York Governor Andrew Cuomo and the New York State Department of Financial Services, filed in 2018. The NRA pursues the defendants for attempting to “blacklist” the organization and its financial partners in violation of their First Amendment rights. The NRA will continue those legal actions.  

I firmly believe this strategic plan represents a pathway to opportunity, growth and progress. One important part of the plan is reincorporating in a state that values the contributions of the NRA, celebrates our law-abiding members, and joins us as a partner in upholding constitutional freedom. This is a transformational moment in the history of the NRA.

The NRA’s day-to-day business operations will continue uninterrupted.

This proven mechanism is a positive for us, allowing our advisors to pursue strategic advantages for the NRA as our leadership team continues to advance our mission.

We will continue to promote our Second Amendment advocacy, firearms education and training, and public endeavors. We do not anticipate any measurable impacts to our staffing, public programs or Second Amendment advocacy.

We are forming a special committee to study the possibility of relocating key segments of our business operations to Texas or other states.

A new committee, under the direction of First Vice President Charles Cotton, will study opportunities for relocating segments of NRA business operations to Texas or other states. We are exploring any option that may work in the best interests of the NRA and its members.

In the meantime, the NRA’s general business operations will remain in Fairfax.

Building Our Strengths

I have added Marschall Smith as our Chief Restructuring Officer. Marschall is a former Senior Vice President and General Counsel of 3M Company and ADM, among others, and has more than 35 years of legal and business experience with an emphasis on compliance, corporate finance, and corporate governance.

A native Texan, Marschall served 10 years as a Marine Corps officer, including four years of active duty with combat service in Vietnam. He left the Marines with the rank of major. He was a member of the Carter/Mondale presidential transition team and served as a special assistant to the Director Designate of Central Intelligence. He received his bachelor’s degree, cum laude, from Princeton, followed by a Juris Doctor degree from The University of Virginia and an MBA from The University of Chicago.

Marschall will work closely with the NRA senior leadership team. I know he looks forward to meeting all of you – as we embark upon this journey together.

Do not believe everything you hear in the media. We fully expect our adversaries to try to gain some sort of perceived advantage over the NRA by mischaracterizing this strategic plan. They will portray a so-called “bankruptcy” as a negative and, once again, predict our demise.

The liberal media, anti-gun gadflies, and left-wing politicians will desperately try to advance another distorted truth about the NRA.


The NRA is financially strong and well-positioned on all fronts. I am confident our members, employees, and most loyal stakeholders will appreciate the extraordinary benefits of this plan and realize the value of the NRA charting its own path forward – on its own terms. (We are making immediate outreach to our members, instructors, donors, and other key stakeholders.)

Again, this plan allows us to streamline our legal and business affairs, escape a radicalized New York political environment, and position ourselves for the long-term. It is the first step of an ambitious and exciting blueprint for the future.

We will stay in regular communication with the board. In the meantime, please visit www.nra.org/forward for more information. If you receive any public inquiries, please refer them to Andrew Arulanandam, managing director of NRA Public Affairs, at aarulanandam@nrahq.org.

Thanks in advance for your loyalty and partnership. I’m confident we have never been better positioned in the history of our organization – or more prepared to keep winning the fight for freedom.

Wayne

I think much of the Board was caught unawares by this legal move. My legal sources are casting some doubt that this will end the case in New York unlike the impression given by the happy, rah-rah tone of the letter and other press releases.

Letitia James Responds To NRA Move

New York Attorney General Letitia James has responded to the legal moves by the National Rifle Association to reincorporate in Texas.

NEW YORK – New York Attorney General Letitia James today released the following statement after the National Rifle Association (NRA) declared it would seek bankruptcy protections in federal court, as well as sought to reincorporate its nonprofit status in the state of Texas:

“The NRA’s claimed financial status has finally met its moral status: bankrupt. While we review this filing, we will not allow the NRA to use this or any other tactic to evade accountability and my office’s oversight.”

In August, Attorney General James filed a lawsuit against the NRA, Executive Vice-President Wayne LaPierre, and three of LaPierre’s current or former top executives for failing to manage the NRA’s funds; failing to follow numerous state and federal laws, as well as the NRA’s own bylaws and policies; and contributing to the loss of more than $64 million in just three years for the NRA. The suit was filed against the NRA as a whole, LaPierre, as well as former Treasurer and Chief Financial Officer Wilson “Woody” Phillips, former Chief of Staff and the Executive Director of General Operations Joshua Powell, and Corporate Secretary and General Counsel John Frazer.

According to a story on the bankruptcy filing by Reuters, it is thought the move will put the New York lawsuit on hold and may remove James’ power over the NRA through the reincorporation. Maybe yes, maybe no.