Karl Racine

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NRA Foundation Accused Of Misuse Of Funds

August 6, 2020 by 6 Comments

On the same day that New York Attorney General Letitia James filed suit to dissolve the NRA, DC Attorney General Karl Racine filed suit against the NRA Foundation and the NRA accusing them of the misuse of funds. The suit is filed in Superior Court, Civil Division, for the District of Columbia.

According to the complaint, Racine is alleging that the Foundation allowed its funds to be used to support wasteful spending at the NRA itself. Further, he alleges that the Foundation put the NRA’s interests ahead of its own, did not operate independently of the NRA, and allowed itself to be exploited through multi-million dollar loans to the NRA which have never been repaid.

From Attorney General Racine’s press release:

“Charitable organizations function as public trusts—and District law requires them to use their funds to benefit the public, not to support political campaigns, lobbying, or private interests,” said AG Racine. “With this lawsuit, we aim to recover donated funds that the NRA Foundation wasted. District nonprofits should be on notice that the Office of the Attorney General will file suit if we find evidence of illegal behavior.” 

The suit makes the following claims.

  • The Foundation allowed charitable donations to be used for non-charitable purposes
  • The Board failed to uphold their fiduciary duty
  • Abandoning it charitable purpose through loans to the NRA
  • Placing the interests of the NRA above that of the Foundation

The suit asks that a constructive trust, for the benefit of the Foundation, be placed over the Foundation’s assets loaned to the NRA so as to protect them. It goes on to ask that the Foundation’s governance policies be modified to insure its independence from the NRA, that a court-ordered monitor be appointed to oversee and monitor all of the Foundation’s finances and transactions, and that the Board of Trustees and Officers be required to take nonprofit charitable governance training.

While no acknowledgement is made of it, I would be highly surprised if officials in both the New York and District of Columbia’s Attorneys General offices didn’t cooperate and share information back and forth from their respective investigations.

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Another AG Gets Into The Act (Against The NRA)

July 12, 2019 by 2 Comments

First it was NY Attorney General Letitia James who issued subpoenas to the National Rifle Association as part of an investigation to see whether they are violating New York’s non-profit organization laws. Now it seems that Karl Racine, Attorney General for the District of Columbia, wants to get into the action.

From the Washington Post which first reported it:

The office of Attorney General Karl A. Racine is seeking financial documents from the NRA and its foundation. The NRA Foundation is chartered in the District and the NRA is registered as a nonprofit and does business there.

“The Office of the Attorney General for the District of Columbia has issued subpoenas to the National Rifle Association of America (NRA) and the NRA Foundation, Inc., as part of an investigation into whether these entities violated the District’s Nonprofit Act,” Racine said in a statement.

He continued: “We are seeking documents from these two nonprofits detailing, among other things, their financial records, payments to vendors, and payments to officers and directors.”

The Code of the District of Columbia gives the Attorney General significant powers when it comes to non-profit corporations. The Attorney General can seek the dissolution of a non-profit, can impose “a constructive trust” on compensation for directors, officers, and managers, and can seek other equitable or injunctive relief as the courts deem necessary. The language of the code gives him great leeway in bringing such actions. For example, if he deems that the corporation has “continued to act contrary to its nonprofit purposes”, this give his office grounds to bring actions in court. That language is so wide open that virtually any non-profit could be taken to court if the Attorney General has an axe to grind. Racine has used these laws against the Trump inaugural committee and the Catholic Church.

How many more of these type actions will it take for the Wayne LaPierre loyalists on the NRA Board of Directors to realize that they have a serious problem on their hands? I fear that unfortunately all we will get is another “ignore the man behind the curtain, all is OK” statement from the Meadows-Cotton-Lee cabal as opposed to the concrete actions needed to shore up the NRA.

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Official Statement On Decision Not To Appeal Wrenn Case

October 5, 2017 by

As reported earlier today, Karl Racine, District of Columbia Attorney General, has decided not to appeal the Court of Appeals decision in Wrenn v. DC. His official statement is below:

WASHINGTON, D. C. – Below is a statement from Attorney General Karl A. Racine regarding his decision, in consultation with other District leaders, not to petition the Supreme Court of the United States for a writ of certiorari to review the decision in Wrenn v. District of Columbia and Grace v. District of Columbia by the U.S. Court of Appeals for the District of Columbia Circuit:

“Public safety is, and has always been, my paramount concern. I continue to believe the District’s ‘good reason’ requirement is a common-sense, and constitutional, gun regulation. However, we must reckon with the fact that an adverse decision by the Supreme Court could have wide-ranging negative effects not just on District residents, but on the country as a whole.

“In consultation with Mayor Bowser, Chairman Mendelson, Judiciary Committee Chairman Charles Allen and multiple stakeholders, and after careful consideration, we reached consensus that abiding by the D.C. Circuit’s ruling was the wisest course of action to protect public safety in the District and nationwide. Therefore, I have decided not to appeal to the Supreme Court.”

Background
A loss in the Supreme Court could affect similar gun regulations in other jurisdictions – including in nearby states like Maryland, New Jersey, and New York. The proliferation of guns in those places can have spillover effects for the safety of District residents.

While the good-reason requirement will sunset upon the D.C. Circuit’s issuance of its mandate effectuating its ruling, the rest of the District’s reasonable regulations on who may obtain a permit to carry a concealed firearm and the circumstances in which one may carry in public remain in place.

The Office of Attorney General has issued a FAQ regarding eligibility for obtaining a DC concealed carry permit. They are still going to make it as hard as possible to obtain but if you have a clean record and no mental health issues then you should qualify.