NRA Settles CarryGuard Debacle With NY State

The National Rifle Association entered into a consent order with the New York State Department of Financial Services today. The Department of Financial Services had charged the NRA with violating New York insurance law with its CarryGuard program as well as with its affiliate insurance programs.

From the NY DFS new release:

Superintendent of Financial Services Linda A. Lacewell today announced that the New York State Department of Financial Services (DFS) has entered into a consent order with the National Rifle Association (NRA). On February 5, 2020, DFS served a statement of charges and notice of hearing to the NRA over violations of New York Insurance Law. That case is now resolved by a consent order that includes a civil monetary penalty of $2.5 million for violations of New York insurance laws.  

In addition, the NRA is banned from marketing insurance in the State or receiving compensation in connection with any newly issued New York insurance policies for five years, irrespective of whether the NRA obtains a license. This brings to a close a three-year investigation. 

In the consent order, DFS found that, despite lacking a license to conduct insurance business in New York, the NRA violated various New York insurance laws and regulations by, among other things, acting as an insurance producer without a license in participating in efforts to solicit and market the sale of insurance products, including the NRA’s Carry Guard insurance program. 

“The NRA operated as an unlicensed insurance producer and broke the New York Insurance Law by soliciting insurance products and receiving compensation,” said Superintendent Lacewell. “Even worse, the NRA violated the New York Insurance Law by soliciting dangerous and impermissible insurance products, including those within its Carry Guard program that purported to insure intentional acts and criminal defense costs. The Department will continue to protect the integrity of the insurance market for the purposes of safety and soundness and the good of all consumers.” 

The CarryGuard program was rushed into the market under the management of former Executive Director of General Operations and former Chief of Staff Josh Powell. As I understand it, his predecessor Kyle Weaver, then Director of General Operations, was building the program out step by step which wasn’t fast enough for the powers that be. The thought behind the program was that the NRA had helped get shall-issue concealed carry introduced in many states. However, they saw groups like USCCA offering legal defense programs which the NRA saw as making money off their hard work and they wanted in on it.

Then, Powell replaced Weaver and rushed the product to market with big fanfare at the NRA Annual Meeting in Atlanta. That rush has now cost the NRA $2.5 million it can ill afford to spend.

In a story from Reuters on this consent order, NRA outside counsel William Brewer III tries to put a positive spin on it.

The NRA has said it did not underwrite its insurance programs, and that like “countless” affinity groups it relied on industry experts to market products to members.. It did not admit wrongdoing in agreeing to settle.

William Brewer, a lawyer for the NRA, said in a statement: “The DFS inquiry, which began with a roar, ends with a whimper.” He said the settlement has no effect on other litigation pending between New York state and the NRA.

That story also has this from Superintendent Lacewell regarding the other insurance offered through the NRA.

She also accused the NRA of misleading gun collectors, dealers, instructors, clubs and shows by promising coverage at the “lowest possible cost,” when the group typically kept between 13.7% and 21.9% of premiums paid.

This Was Supposed To Be The Big Day for Josh Powell

If you had been paying any sort of attention to the mainstream media, you might know that today was the day that Josh Powell’s tell-all book was to be released. The book entitled, Inside the NRA: A Tell-All Account of Corruption, Greed, and Paranoia within the Most Powerful Political Group in America, is supposed to tell us the inside scoop about Wayne and company.

Amazon is running this as the blurb for the book:

A shocking exposé of rampant, decades-long incompetence at the National Rifle Association, as told by a former member of its senior leadership.

Joshua L. Powell is the NRA–a lifelong gun advocate, in 2016, he began his new role as a senior strategist and chief of staff to NRA CEO Wayne LaPierre.

What Powell uncovered was horrifying: “the waste and dysfunction at the NRA was staggering.”

INSIDE THE NRA reveals for the first time the rise and fall of the most powerful political organization in America–how the NRA became feared as the Death Star of Washington lobbies and so militant and extreme as “to create and fuel the toxicity of the gun debate until it became outright explosive.”

INSIDE THE NRA explains this intentional toxic messaging was wholly the product of LaPierre’s leadership and the extremist branding by his longtime PR puppet master Angus McQueen. In damning detail, Powell exposes the NRA’s plan to “pour gasoline” on the fire in the fight against gun control, to sow discord to fill its coffers, and to secure the presidency for Donald J. Trump.

ABC News’ Pierre Thomas had an exclusive interview with him. It was so earth-shattering that they ran it on Friday on World News Tonight, on Sunday with George Stephanopolous, and again on Monday on GMA.

Powell described himself as a “huge Second Amendment supporter” with a sizable gun collection and a lifelong passion for hunting and shooting. As the NRA’s “No. 2 guy,” he said he “worked side by side” with LaPierre over several years. An NRA spokesperson, in a statement, said that Powell “had zero input or influence on the NRA’s political or legislative strategy,” but Powell says he was involved in “every single important conversation that went on in the NRA.”

But he became disillusioned with the organization and LaPierre’s leadership, he said, as LaPierre’s alleged misuse of members’ money came into focus. Powell says his work became “soul-sucking,” and he now considers it a “low point in [his] life.”

Danny Hakim of the New York Times reported that Powell is now calling for red flag laws and universal background checks.

A hunter since childhood and former Chicago options and derivatives trader, Mr. Powell says that the N.R.A. has fundamentally lost its way, abandoning “its roots as an organization focused on gun safety and education.” That has led it to limit its own long-term membership growth, he argues, by turning its back on the majority of gun owners who support background checks.

With this kind of build up plus dishing all the dirt on Wayne LaPierre and the NRA, you would think the New York Times Review of Books would give it a glowing review just to get Powell’s narrative out there.

And…you would be mistaken.

The review of the book was brutal. It starts off with this:

This is a sad book, and a bad one, and you shouldn’t buy it. The thinking in it is poor; the writing is worse. The author “exposes” evils that, if you’ve been paying even scant attention, you already know. Expect it soon in a Walmart remainder bin near you.

I had always assumed that Powell had a ghostwriter. Given the review of the writing style, I might be mistaken on that. Either that or he had the worst ghostwriter that money could buy.

It gets worse.

The unrelenting barrage of clichés is worse. The N.R.A. has debased the American language, and Powell adds to the sludge. If you only skimmed this book, you would think it was about a fox in a henhouse who caught flak and was thrown under a bus for playing laser-focused hardball like gangbusters and getting the short end of the stick while sensing blood in the water.

It concludes:

Powell’s book is a mea culpa. About the N.R.A.’s Kool-Aid, he writes, “I sold it, stirred it, drank it every day.” He lost his soul, he writes, and became part of the swamp. He’d like, he claims, again unconvincingly, to see the N.R.A. largely return to its roots as an organization dedicated to gun safety.

The N.R.A., in this telling as in others, is an organization in free fall. About New York’s attorney general, Letitia James, who has taken existential aim at the N.R.A., he writes, “I’m not betting against her.”

Bearing in mind that Powell is one of the four named defendants in the suit brought by Letitia James and because he appears to be a sociopath willing to do anything to save his own skin, I’m guessing he has already rolled over and is providing James all the gossip.

You might remember I noted that Powell’s attorney is a partner at Akin Gump. I had wondered how a guy without a job could afford such an expensive attorney. Five years ago the reported partner billing rate for the firm was over $1,200 per hour and undoubtedly is higher now. I might have an explanation for that. A friend who is a DC attorney said that lots of the big DC firms will take cases like this pro bono in exchange for the publicity.

It is either that or perhaps a former big city mayor who hates the NRA enough has decided to foot the bill so that even more dirt about the NRA is released just prior to the election. Nah, that would make me look like a conspiracy theorist or something.

Finally, if you are wondering how such an incompetent grifter ever got hired to a high position at the NRA, my sources say that the blame falls on Pete Brownell and Wayne’s former BFF Tony Makris. Sometime after Powell was elected to the NRA Board of Directors, they pitched him to Wayne as someone for his executive team. The rest is history as the saying goes.

Brewer Represents NRA But Not LaPierre?

All the filings for the lawsuit brought by the Attorney General of New York seeking dissolution of the NRA are online. You can see when the individual defendants were served and in what manner.

Both Josh Powell and Wilson “Woody” Phillips had their attorneys file a “stipulation of service” which also granted them time to respond. This was done two weeks ago. Interestingly, they each have hired attorneys with big name firms. Powell’s attorney is Mark MacDougall who is a partner with Akin Gump in DC and was formerly a Federal prosecutor. Likewise, Phillips’ attorney Seth Farber, a partner with Winston Strawn in New York, was also a former Federal prosecutor.

John Frazer was personally served at home in Virginia two weeks ago. The description of the person accepting the service fits that of John Frazer himself.

Here is where it gets interesting. It seems Wayne LaPierre and/or his security guards not only refused service at both the office and his home in Great Falls, Virginia, but is not being represented by Bill Brewer.

Stephen Gutowski of the Free Beacon noticed that in this filing that was done this past Saturday. He posted about it on Twitter earlier this evening. If you double-click on the embedded tweet you can see the filing. Look at paragraph 2.

Regardless of who is or will be Wayne’s attorney, I really don’t think the judge presiding over the case will look too kindly on the petulant manner in which Wayne and his henchmen treated the process server. The other three individual defendants accepted service politely or had their attorneys reach out to accept it.

James Seeks NRA Dissolution

While there was some speculation earlier today that NY Attorney General Letitia James’ “national announcement” would have to do with President Trump. That was wrong. The original speculation was that it had to do with the NRA was correct.

James has moved to dissolve the NRA in NY Supreme Court for New York County. She has an 18 point, 169 page complaint which includes claims that Wayne LaPierre, Josh Powell, Woody Phillips, and John Frazer have violated their fiduciary duty.

James in her press conference said that she will be forwarding information to the Internal Revenue Service regarding the NRA’s non-profit status. As to freezing assets of both the named individuals and the organization as a whole that is included in the complaint. When asked if she will be seeking criminal charges, James said the investigation is ongoing and any criminal charges will be referred to Manhattan DA Cy Vance Jr. if necessary. James also denied that bringing this dissolution action has anything to do with her personal views on “gun violence” and is only seeking to enforce New York charity law.

James, in her press release, says the resolution she seeks is:

As a result of all the allegations mentioned above, Attorney General James seeks to dissolve the NRA; asks the court to order LaPierre, Phillips, Powell, and Frazer to make full restitution for funds they unlawfully profited and salaries earned while employees; pay penalties; recover illegal and unauthorized payments to the four individuals; remove LaPierre and Frazer from the NRA’s leadership (Phillips and Powell are no longer employed by the NRA); and ensure none of the four individual defendants can ever again serve on the board of a charity in New York.

You can watch the full announcement below. I will be scanning through the court filing in an effort to provide a digest later today.

Josh Powell And NRA Have Split

While it was reported yesterday that Josh Powell was on administrative leave from the NRA, it now appears that their employment relationship has been severed. The initial report was based upon court filings by Ackerman McQueen in Alexandria Circuit Court.

Newsweek is reporting that an email was sent this evening to the members of the Board of Directors informing them that Powell was gone.

From Newsweek:

However, according to an internal email obtained by Newsweek, Powell has departed the NRA entirely.

It was not clear whether Powell was fired or if he resigned. The NRA did not immediately respond to a request for comment.

The email clarifying the nature of Powell’s departure was sent to the board of directors Saturday evening by the NRA’s general counsel John Frazer.

“Several directors have reported receiving media queries regarding Josh Powell and his employment status with the Association,” he wrote. “For the sake of clarity, we note that Josh is no longer employed by the NRA.”

In noting the sensitivity of discussing personnel matters, Frazer made reference to “the assortment of pending and threatened litigation” facing the gun-rights group.

The Newsweek article also raised a question that someone asked me on Twitter this evening: how did Ackerman McQueen know or find out that Powell had been placed on leave?

Save the Second raised some interesting questions regarding the termination of Powell’s employment with the NRA.

From their Facebook post:

 1. Why, specifically?

2. Was this a move against Wayne’s wishes/protection?

3. Was there an insultingly generous severance package to add insult to injury after his disastrous tenure as an overpaid executive that didn’t seem to do anything right?

4. Will the problems he and his decisions/appointments caused in the NRA’s Education & Training Division be undone ?

Given that it will be classified as a personnel matter, I think the whys and wherefores of his termination may never be fully known. Moreover, unless either Wayne or one of his inner circle talks, we won’t know the answer to number 2.

We may have to wait until the Meeting of Members at the Annual Meeting in Nashville to find out if any severance package has been paid. If then.

Only time will tell if the problems Powell caused in Education and Training will be solved.

Hat Tip: Save the Second for the Newsweek article

AckMac Court Filing Noting Josh Powell’s Administrative Leave

Below is the Memorandum of Law in Support of Defendant’s Motion to Compel Plaintiff to Provide Meaningful and Supplemental Answers to Interrogatories. This was filed on January 23rd by attorneys for Ackerman McQueen in their legal battle with the National Rifle Association. It covers both the first and second lawsuit filed by the NRA against AckMac in City of Alexandria Circuit Court.

This is where we first learned the Wayne LaPierre’s Chief of Staff Josh Powell was on Administrative Leave. As far as I know, it had not been public knowledge before that.

There is a lot of legalese in these pages but a scan through them does give the reader a sense of the battle between the two former allies.

There is also the amusing line of Q&A indicating that Wayne was upset that someone at AckMac told the Wall Street Journal his grandniece had drawn on the walls of The Four Seasons with crayons.

2020.01.22_Ack MTC Rog Responses by jpr9954 on Scribd

Hat Tip – Beth for the document

NRA’s Josh Powell Placed On Administrative Leave (Updated)

Wayne LaPierre’s Chief of Staff Joshua Powell has been placed on administrative leave. This is according to court filings in one of the lawsuits involving the NRA and Ackerman McQueen in Virginia courts.

From the Washington Post:

A top National Rifle Association official has been placed on administrative leave pending an investigation by the nonprofit group’s lawyer, according to a recent court filing, in a sign of ongoing turmoil surrounding the nation’s largest gun group.

The removal of Joshua L. Powell, the NRA’s chief of staff, was referenced in a Jan. 23 filing in Alexandria Circuit Court by the NRA’s former public relations agency, Ackerman McQueen. “Mr. Powell has now been placed ‘on leave’ by the NRA pending an investigation by NRA counsel,” the filing in Virginia says.

According to the story by Beth Reinhard, the NRA has not responded to multiple requests for comment. It is also unknown whether he is on paid or unpaid leave. His last reported compensation was $919,969 according to the 2018 NRA Form 990.

Powell also refused comment. The Post notes that he, ” removed “National Rifle Association Chief of Staff – Senior Strategist” from his Twitter bio this week.”

Powell has had a checkered history at the NRA. He was the one responsible for rushing CarryGuard out before it was ready when he served as Director of General Operations. He has also been named in sexual harassment allegations involving an Ackerman McQueen employee. It was serious enough that AckMac told Wayne LaPierre that they refused to work with Powell anymore.

As to why now and not earlier, that is unknown. Some have speculated he knew too much dirt and the powers that be wanted to keep him close. Powell has had a reputation according to some of looking out for himself above all else. If so, it would not have been unreasonable to suspect that he would cut a deal to save himself if it came to it.

Eventually we may know the full story. As for today, we know he is on administrative leave and that’s that.

UPDATE: Thanks to Rob Pincus, we have a photo of the filing in question. It is a filing by Ackerman McQueen asking the court to force the NRA to provide additional information regarding its interrogatories. As Powell is on administrative leave and “not in good standin”, his prior responses on behalf of the NRA under oath are no longer sufficient.

2018 NRA Executive Compensation

When looking at compensation, you have to look beyond mere salaries and bonuses. Total compensation includes both salaries and bonuses but it also includes things like deferred compensation, group life insurance, contributions to retirement plans, and taxable personal expenses.

I was finally able to get a copy of the 2018 Form 990 for the National Rifle Association. This is the tax report that all not-for-profits must file with the Internal Revenue Service. Both 501(c)(3) and 501(c)(4) organizations are included in this category. The NRA itself is a 501(c)(4) which allows it to engage in political campaign activities while the NRA Foundation is a 501(c)(3) and is not allowed to engage in political campaign activities.

Below is a table of the 12 most highly compensated NRA officials ranging from Wayne LaPierre at the top to Director of Education and Training Eric Frohardt at the bottom. If you click on the icon on the bottom right of the embedded spreadsheet, it will open the full spreadsheet.

In the notes of page 3 of Schedule J of the Form 990 is this explanation of how compensation is determined.

Compensation of the NRA’s top management officials is established by methods including independent compensation consultants, compensation surveys and studies, and comparability data. In addition, under the NRA Bylaws compensation of certain elected officials (including the Executive Vice President) must be approved by the Board of Directors, based on recommendations by the compensation committee. All decisions are properly documented.

I have posted the 2018 Form 990 here for reference.

Since comparability data is one criterion used in establishing these officials compensation, I thought I’d look first at publicly traded firearms companies to see how they compensated their top managers. Their compensation is divided into two portions: cash compensation and equity (or stock) compensation. Equity compensation is used to align the interests of managers with that of stock holders.

At Sturm, Ruger and Company, CEO Chris Killoy had a 2018 salary of $500,000 with a profit sharing bonus of $60,324 and a performance bonus of $503,000. His total cash compensation was $1,063,324. Stock awards raised his total compensation to $2.1 million. Killoy manages a company with over 2,000 employees with plants in three states. By contrast, the NRA has somewhere between 500 and 1,000 employees. The base salaries of the other top managers at Ruger ranges from $240,000 to $325,000.

James Debney, CEO of American Outdoor Brands Corporation, had a higher salary in 2018 but no cash bonus. His cash compensation was his salary of $734,039. He did receive a substantial stock award which raised his total compensation to $2.2 million. He manages a workforce of 1,853 employees. Meanwhile, the base salaries of American Outdoor Brand executives range from a low of $283,000 to a high of $402,000 for the CFO.

When you look at other politically active 501(c)(4) organizations like the Sierra Club and Planned Parenthood, the compensation of their executives is substantially less than that of the NRA. For example, Cecile Richards who was the CEO of Planned Parenthood had a total compensation of $1,033,274 from all sources. Meanwhile, the Sierra Club paid Executive Director Michael Brune a total of $333,797 and their CFO about $250,000.

When looking at the compensation of the top managers of the NRA, it is critical to look beyond Wayne LaPierre and Chris Cox. Those two are (or were in Cox’s case) very highly compensated as you might expect. However, it is the salaries of next level down that are really concerning.

Who in their right mind could justify paying Josh Powell over $900,000 with a base salary greater than the CEO’s of either Ruger or American Outdoor Brands? Powell is the guy responsible for the debacle of NRA Carry Guard, the guy the NRA spent money on to settle his sexual harassment problems, and the guy who has run multiple companies into the ground. It is ridiculous!

When you compare the salaries of the managers one level down from Wayne to that of virtually any comparable manager in a publicly traded small cap company, there is no comparison. The NRA managers are compensated beyond the level of their position and responsibility. If I had to hazard a guess, they are being compensated as much for their loyalty to their master – Wayne – as for the work that they actually do. This is just not right and sadly I see no change coming in the near to mid future.

Someone Is Going Under The Bus

The New York Times ran a story by Danny Hakim regarding the financing of the “Russia trip”. It appeared in Thursday’s paper. The “Russia trip” was a visit to Moscow organized by Maria Butina. It was attended by former NRA President David Keene, then-1st VP Pete Brownell, Sheriff David Clarke, and some other board members. The trip was for the purpose of building stronger ties between the NRA and gun-rights supporters in Russia.

The financing of the trip has been of interest to both Congressional investigators and to NY Attorney General Letitia James. There have been a complicated series of personal checks and reimbursements which has attracted their attention. According to the article, the NRA’s outside counsel William Brewer III has asserted in internal presentations that “those involved had exposed themselves to wire fraud charges.” Other attorneys disagreed with this assertion.

Brewer is also asserting that Wayne LaPierre was opposed to the trip. This, however, is contradicted by emails from the time which marked trip-related invoices as “Wayne approved”.

While the whole financing issue is of interest to investigators, it is what is buried in this story that caught my attention. In other words, the story within the story. It concerns the bureaucratic infighting between some of LaPierre’s closest associates.

The invoices for the trip were overseen by LaPierre’s closest aide Millie Hallow.

The 2016 transactions were overseen by Millie Hallow, an aide to Mr. LaPierre, according to emails. In one February 2016 email, Ms. Butina sent an invoice directly to Ms. Hallow for “Hosting of NRA leadership group for six days in Moscow,” according to the document, and thanked her “for your invaluable advice these past few months.”

In a May 26 email that year, Ms. Hallow told other N.R.A. officials that an invoice related to the trip submitted by Mr. Brownell’s company, the firearms retailer Brownells, had been authorized: “Wayne approved these special projects involving Outreach that Brownell has done,” she wrote.

Now it appears that Josh Powell, Chief of Staff to LaPierre, is trying to throw Millie under the bus.

On Thursday, Josh Powell, the N.R.A.’s chief of staff, said in a statement that “in order to facilitate the transfer of funds to Brownell, Millie falsely stated that Wayne approved of certain expenses when he had not. In fact, Millie apologized to me (and others) later for the misrepresentation.”

You may remember that in late July I did a blog post regarding Millie Hallow. It detailed how she had been convicted of felony embezzlement while directing the DC Commission on Arts and the Humanities. My impression was that had been kept a closely guarded secret. I had NRA board members tell me they didn’t know Ms. Hallow was a convicted felon until that post was published.

It now appears that someone wants that information in the public domain.

But Ms. Hallow is one of Ms. LaPierre’s closest aides, and raising questions about her credibility comes at an inopportune time. The N.R.A. is relying on her word in its battle with Oliver North, the organization’s former president, who stepped down this year shortly after making a call to Ms. Hallow that N.R.A. officials described as threatening toward Mr. LaPierre. Ms. Hallow also once pleaded guilty to a felony related to the theft of money from an arts agency she ran in Washington. (emphasis mine)

It would be interesting to know which one of Hakim’s sources pointed that out to him. It does serve the purposes of Josh Powell but the question remains whether he is smart enough to made use of it. I don’t see it serving the purpose of Brewer as he needs her to be a credible witness against Ollie North. That is, unless it is more important to protect LaPierre in the Russia investigation than it is to continue the fight against Ollie North. If that is the case then there is a lot more substance to this whole Russia fiasco than we previously thought and it is a lot more dangerous to the personal fortune of LaPierre. Time will tell.

Don’t Shoot The Messenger, Part 2

Just like Chinese water torture, I think we are in for a series of NRA articles from The New Yorker detailing self-dealing, lavish spending, accounting irregularities, nepotism, and sweetheart deals at the National Rifle Association. The latest episode was released yesterday and is entitled, “An Internal Memo Raises New Questions About Self-Dealing At The N.R.A.”

The article starts off describing a one and a half page memo from the NRA’s accountants to the Audit Committee of the Board of Directors. The memo details a range of “questionable transactions and business arrangement” involving several of the NRA’s top vendors and executives. This memo, unlike earlier leaks, does not go into the Ackerman McQueen issues but rather deals with other items that were found to be irregular. These include reportedly payments made to former CFO Woody Phillips’ “significant other”, cumulative rent of $1.8 million paid for a house to be used by Associated Television International and owned by ATI’s president, and to their fund-raising contractor Membership Marketing Partners.

The memo goes on to question management overrides and approval of housing expenses for certain upper executives.

In addition, the memo drew attention to “senior management override of internal controls,” which led to violations of “accounts payable procedures” and “HR policy,” including “hiring of staff without HR knowledge.” It names four executives who, at the time, were receiving “reimbursement of expenses relating to apartments and living expenses beyond HR Policy Manual stipulations and on a permanent basis.” The N.R.A.’s accountants added that there was “no contract to support the reimbursement request,” which the four individuals continued to claim as a “relocation expense.” The executives named include Doug Hamlin, the N.R.A.’s executive director of publications; Eric Frohardt, the director of education and training; Joe DeBergalis, the executive director of general operations; and Josh Powell, LaPierre’s chief of staff.


Andrew Arulanandam, the N.R.A.’s managing director of public affairs, said that the organization “has, at times, made such accommodations for employees who travel extensively for their jobs.” He added, “The practice of providing such accommodations is approved by N.R.A. leadership and is not uncommon for an organization the size of the N.R.A.”

Powell is the person responsible for bringing in CarryGuard while Eric Frohardt is the former Navy SEAL whom Powell installed as director of education and training and director of training for CarryGuard. Frohardt still lives in Colorado where he owns a range and other businesses according to his LinkedIn page. It is my understanding from those who would know that Frohardt is flown in at the NRA’s expense to work 3-7 days a month. While I have the utmost respect for Frohardt’s service to the nation, 12 years as a Navy SEAL does not make one an expert in training civilians in the legal use of a firearm.

As to Josh Powell, the memo to the Audit Committee mentions his multiple conflicts of interest including the hiring of his dad to do photography for the NRA and his wife, Colleen Gallagher, was hired by a top NRA fund-raising vendor McKenna and Associates. It gets worse.

The N.R.A.’s accountants completed their memo in mid-July. Around this period, the N.R.A.’s new C.F.O., Craig Spray, had to temporarily step away from his role at the organization to deal with a health matter. Someone would need to take his place as the organization’s chief manager of financial activities. According to an internal N.R.A. communication, in July, 2018, Powell was appointed acting C.F.O. for about three weeks, placing him in charge of the accountants who documented his conflicts of interest.

I won’t get into the other issues with regard to Powell other than to say his departure from the NRA would help the organization. Placing him as the senior strategist to work with outside counsel William Brewer on New York litigation is a disaster in the making.

I would be remiss if I didn’t note that a lot of the research on the NRA’s problems come from Bloomberg’s The Trace and they did help with The New Yorker articles. I have a theory as to how they are gathering this information. I think Michael Bloomberg and his associates have hired a corps of private investigators whose job it is to find former NRA employees who have left because they were disgusted with the self-dealing and other financial issues. I can’t think of any other way that they could be gathering this inside information unless it was being funneled to them by Ack-Mac.

One way or another the NRA will get its house in order. It can be done either by the Board of Directors or it will be done for them by the State of New York, the Internal Revenue Service, and other outside agencies. Far better that the changes come from within than from without. It can be controlled and managed to make the organization stronger, bigger, and more diverse.

My fear is that new officers of the NRA – Carolyn Meadows, Charles Cotton, and Willes Lee – and much of the Board are such stalwart Wayne LaPierre supporters that they will go along with the status quo (ante bellum) to the NRA’s detriment. Ignoring it is not going to make it go away and will only make matters worse. That, however, is the most probable outcome as things stand now.