NRA bankruptcy

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Another NRA Board Special Meeting

April 19, 2021 by 2 Comments

Stephen Gutowski of The Reload is reporting that a special meeting of the Board of Directors has been called for May 1st in Dallas. The purpose of this meeting is to approve a reorganization plan that the NRA plans to present to the US Bankruptcy Court.

They plan to have a regular Board meeting on Sunday, May 2nd.

This meeting comes after two weeks of testimony before Judge Hale in the US Bankruptcy Court. As Gutowski, myself, and others have noted, this testimony has brought out many questionable financial practices involving Wayne LaPierre, his executive assistant Millie Hallow, and former CFO Woody Phillips.

As Gutowski notes regarding the meeting:

The NRA did not respond to a request for comment on the special board meeting, but there is a possibility the meeting won’t even take place. The current portion of the bankruptcy trial is set to end on April 23, and the judge is supposed to issue an order in the case by April 30. If the judge decides to appoint a trustee or dismiss the case, it is possible the group won’t have an opportunity to present the restructuring plan the board is set to review on May 1. A trustee could also fire current leadership and the board of directors before the meeting occurs.

The US Trustee has objected to the appointment of a Chief Restructuring Officer as proposed by the NRA. The US Trustee noted that the CRO would report to Wayne and the Special Litigation Committee composed of Meadows, Cotton, and Lee. Thus, the CRO would not be independent and could not be independent without bylaw changes by the NRA.

As the blog NRA In Danger points out:

The US Trustee did a better job of reading NRA’s Bylaws than did NRA’s attorneys. He points out that the CRO might be an NRA officer and the Bylaws say only the members can create a new NRA officer,

“It is not clear whether the NRA’s bylaws permit the creation of a chief restructuring officer position. The NRA’s most recent Bylaws incorporate input from the NRA’s membership and confer limited authority to officers and committees. The NRA’s Bylaws state that certain “AMENDMENTS IN BOLD FACE ITALICS SHALL NOT BE REPEALED OR AMENDED BY THE BOARD OF DIRECTORS.” Instead, Article XV, Section 4, reserves authority to amend bylaws in bold and italics to the NRA’s membership. Article V, Section 1(b), describes the specific officer positions, and in bold italics, states “The Board may not abolish said offices nor create any other offices.” 

There is another hearing scheduled before Judge Hale this afternoon at 4pm CDT. It will be interesting to hear what comes out of that meeting.

You will note that I did not say that Stephen Gutowski is with the Free Beacon. He left them on Friday and is now out on his own with The Reload. I would urge you to check it out and subscribe if you think it worthwhile. I did and I’m looking forward to his continued reporting on all things gun-related.

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They Can’t Claim Ignorance Any More

April 18, 2021 by 3 Comments

The NRA Board of Directors has long relied upon the word of EVP Wayne LaPierre for virtually everything. If a disturbing matter was brought up to them, they, for the most part, would say something like, “Well, I talked to Wayne and he said blah, blah, blah.” They considered this as doing their duty of care as a Board member.

As I pointed out in my post on fiduciary duties, duty of care means to give “reasonable attention and care to providing oversight.” Under New York public charities law, that includes knowledge of the organization’s finances.

Over the last few days, I have listened intermittently to the hearings held on the NRA’s Chapter 11 bankruptcy. I have also read synopses of these hearings on other sites. Some of the things I heard had me shaking my head while shouting at the computer, “How could you not know?”

For example, Wayne LaPierre testified before the court that he had no knowledge of the consulting contract awarded to former CFO Woody Phillips and that he had only recently learned of it. The contract in question was for $30,000 monthly to run for four full years. The total value of the contract would then be worth $1,440,00. How can a CEO not know that his recently retired CFO just got a contract worth over $1.4 million?

The one thing I do believe that came out of Wayne’s rambling testimony is his acknowledgement that he didn’t inform the Board of his intention to seek bankruptcy before filing it. If he had, I believe more Board members would have reacted at the time like Judge Phil Journey saying “we didn’t authorize that.” Their ex post facto motion saying they authorized filing bankruptcy then and now is frankly nothing more than a cover garment.

On Friday I listened to live testimony from Wayne’s former BFF Tony Makris as well as AckMac CFO Bill Winkler. A deposition of former NRA CFO Woody Phillips was also read into the record with one NYAG attorney reading the questions and another reading Phillips’ response. The key thing that was continually pointed out by Makris and Winkler is that the vague invoices sent by AckMac were at the direct request of Wayne. This continued even after a new agreement was reached that stated the only deviations had to be in writing from Wayne as EVP. Wayne, of course, still continued with his way of not putting his wishes in writing. Greg Garman, one of the NRA’s attorney, pounded on AckMac’s Bill Winkler about ignoring the letter of the contract and going along with how things had been done in the past. I think this was a strategic mistake on his part as it opens the door to questioning similar vague invoices from Brewer, Attorneys and Counselors.

I should note here that Woody Phillips’ testimony primarily consisted of him saying, “I decline to answer based on the privilege accorded me by 5thamendment of the US Constitution.” The one thing I can say about that is that you can’t be accused of perjury if you always take the Fifth.

As I said in the headline, the NRA Board of Directors cannot claim ignorance any longer. The beauty of WebEx is that it does a good job of capturing who is participating or listening in to an event. In this case, I saw reporters such as Danny Hakim of the NY Times, Mark Maremont of the Wall Street Journal, and Stephen Gutowski of the Free Beacon. I also counted at least six Board members listening in. They included Carrie Lightfoot, Anthony Colandro, Joel Friedman, Linda Walker, Howard “Walt” Walters, and Judge Phil Journey (who I expected to listen in). There may have been more as there were people who logged on by phone and not by computer.

My point is that after multiple days of testimony and over 600 documents, pleadings, exhibits, motions, and replies, it is impossible for anyone on the Board to say they don’t know what is going on. If they do, then they need to resign.

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A New Must Read Blog

April 15, 2021 by 6 Comments

A friend sent me a link to a new blog called, “NRA in Danger.”

Having read all of their postings, I’d say it is a must-read blog especially for any NRA member who is concerned about the bankruptcy filing, the organization’s future, and the shenanigans played by Wayne and company. I don’t know who is writing this blog but I have found their reporting on the NRA’s bankruptcy hearings astute and incisive.

Here is how they describe themselves:

We are a group of NRA members, all life or above, who are concerned about where our organization is being taken. In 2019, the 150 year-old NRA, the oldest civil rights organization in the country, was rocked by financial scandals. The New York Attorney General (It’s a New York corporation) sued to dissolve its corporate charter, to kill it as a corporation. Since then its leadership and Board of Directors has consistently made the worst possible decisions, feeding her ammunition. A good move would have been to announce it was concerned about the allegations, was going to seriously investigate, and remove or otherwise punish those responsible. She’d have had no case then, yes there were problems, and NRA’s board is curing them.

Instead, the choice was to purge those who supported an investigation, threaten any who might join them, cover up everything, keep those responsible, and hand them big bonuses. Members were told that nothing was wrong, her case was all lies and posed no danger. Then the Board filed for bankruptcy, spending millions to escape from that supposedly harmless suit.

The members deserve truth, and we will do our imperfect best to give it to them.

We can be contacted at: NRAlifer -at- protonmail.com

I have only listened to some of the bankruptcy hearings. However, this one part from Day Five which included testimony from Judge Phil Journey just infuriated me.

At board special meeting in March, he was told his motion made him an enemy of NRA’s position. Charles Cotton asked that anyone adverse to NRA not attend executive session, while staring at him. He attended anyway. Got up to speak at microphone, chair ignored him, refused to call on him and he eventually sat down. When they went back into open session he asked to speak on a point of personal privilege, his honor had been impugned, and people shouted him down and Willis Lee, 2nd VP and chair, ruled him out of order. So he was prevented from speaking to the rest of the board about the issues and why he had filed.

A majority of the Board and especially the leadership are acting like petulant children. Their actions are more reminiscent of the behavior of members of the Soviet Politburo towards someone who had fallen out of Stalin’s favor.

I will freely admit that I was taken in by Willes Lee. I endorsed him not once but twice. I regret ever urging anyone to vote for that snake in the grass. The best I can say in my defense is that Willes was very good at cozying up to and playing members of the Second Amendment new media. That is, until he got what he wanted. Now we are yesterday’s news and treated like untermensch.

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NRA Bankruptcy Hearing

April 8, 2021 by 1 Comment

The US Bankruptcy Court for the Northern Texas District is holding a live hearing on the NRA’s bankruptcy petition today. You can watch it live using this link: https://us-courts.webex.com/webappng/sites/us-courts/dashboard/pmr/hale

I believe this is the third day of the hearing and the witness is NRA EVP Wayne LaPierre.

Wayne does not make a good witness. The judge has had to admonish him a dozen times or more to limit his answer to the question asked. His own attorney has instructed him to just answer “yes or no” when asked that kind of question. On virtually every other answer, the attorney asking him the question has to ask the judge to strike part or all of the answer as being non-responsive and Judge Hale is sustaining that objection.

I believe every NRA Board member needs to be watching Wayne’s testimony. There are a few that I’ve noticed listed in the WebEx as being online. Given what I’ve seen so far, board members need to be asking themselves this question: Is it or is it not time for Wayne to retire?

I know what my answer is.