NRA’s Mystery Case Revealed

First, there was a post in The Trace referring to a sealed case involving the NRA and its longtime advertising firm Ackerman McQueen. It turns out all we knew is that the NRA has subpoenaed Tony Makris’ wife Elicia Warner Loughlin. She went to US District Court in South Carolina to quash the subpoena as being “burdensome”. It should be noted at this time that the NRA has settled with Ackerman McQueen for $12 million. Further, Makris’ Under Wild Skies won a judgement for $500,000 +/- in Virginia state courts against the NRA.

Next, the blog NRA In Danger reported on another move to squash a subpoena issued by the NRA. This time it was Makris who went to US District Court in Virginia to squash it. That subpoena had been issued to his CPA firm of Fitzwater and Dean. On August 18th, Magistrate Judge John Anderson ruled in favor of quashing the subpoena. He said it was overbroad, would impose an undue burden, not timely, and that the information could be obtained elsewhere. He also refused to transfer the case to the US District Court in Texas. Judge Anderson did allow the discovery order to remain sealed pending orders from the court in Texas.

Thanks to Judge A. Joe Fish of the US District Court for Northern Texas unsealing the majority of the case on August 25th, we finally have an answer.

The NRA sued Ackerman McQueen and the Mercury Group for breach of contract on September 1, 2022. The complaint which was filed under seal alleges Ack Mac and the Mercury Group violated the terms of the Confidential Settlement Agreement (CSA) because Makris and Under Wild Skies was suing the NRA in Virginia state court. They contend that UWS was an affiliate company and that suit violated the $12 million settlement which was “a broad, mutual general release of all claims (the “Release”) among the parties and their affiliates and/or related companies.”

The complaint goes on to argue that since Tony Makris was a senior executive of Ack Mac and President of Mercury Group, he and Under Wild Skies were precluded from suing the NRA in state court as they were “intertwined” and thus bound by the CSA. AckMac and the Mercury Group are included this suit because they failed to “cooperate in the dismissal of the UWS litigation.” The NRA does acknowledge later in the complaint that UWS is an entity that is solely owned by Tony Makris and is a Virginia corporation.

What is ironic here is the claim by the NRA (or should I say Brewer, Attorneys and Counselors) that they only sued AckMac, the Mercury Group, and Under Wild Skies initially so that they could do their due diligence and comply with concerns of New York regulators.

The NRA is asking for damages in excess of $75,000, attorneys’ fees in both this and the UWS cases, and reimbursement with interest of the damages awarded by the Virginia court.

In response to the NRA’s allegations, AckMac and the Mercury Group acknowledge the CSA, the litigation in Virginia by UWS, and that Tony Makris is an officer of both AckMac and Mercury. There is stops. They say that Under Wild Skies is not an affiliate or related entity of either company. They deny UWS was bound by the CSA. They also say the lawsuit is moot because the Virginia court found UWS was not bound by the CSA and that a jury awarded UWS $550,000 in damages. It is also contended that this lawsuit is “collaterally estopped” due to the rulings of the Virginia court which disposed of the NRA’s argument that the CSA included Under Wild Skies. Given that, this argument cannot be raised again.

Later filings added Tony Makris personally as a defendant in the case. His brief for summary judgement filed in May 2023 argues that he was never a named party to the CSA. Further, that he individually was not a party to the litigation in Virginia between Under Wild Skies and the NRA. It was the corporation that sued the NRA and not Makris personally. He also argues that he was a beneficiary of the CSA and cannot be sued as it granted release from any liability, damages, etc “from the beginning of the world until the date of this release.” Included in that release were all “Ackerman parties” which included any past, present, or future officer, director, shareholder, principal, etc. of Ackerman McQueen and Mercury Group. The NRA explicitly has said that Makris was an officer and executive and thus he personally would be covered by the CSA.

I don’t know how this case will be resolved. However, given there are 171 entries in the docket, attorneys have come and gone from Brewer, Attorneys and Counselors, and there is a lot of back and forth on what can be introduced as evidence or what can be sealed, I think the real winners in this case will be the attorneys.

For the life of me, I cannot see what financial benefit will accrue to the NRA given the legal bills involved in trying to claw back the $550,000 paid to Under Wild Skies and perhaps some of the $12 million in the CSA with AckMac and Mercury Group. I don’t know if the Special Litigation Committee was involved in approving this lawsuit or if the Board was even informed. Regardless, this lawsuit seems more akin to the lawsuit that cost $8 million in legal fees so the NRA could avoid paying Chris Cox the $2 million in severance due him. They lost that case by the way. It just seems a frivolous waste of members’ dues that could have gone to more important things. You know like actually defending the Second Amendment against the predations of the Biden Administration.

A New Double Secret NRA Lawsuit Against AckMac?

The NRA filed a lawsuit against Ackerman McQueen, Mercury Group, and Tony Makris in the US District Court for the Northern District of Texas. According to the case’s docket number, it was filed sometime in 2022 and it was assigned to Senior Judge A. Joe Fish. The other known facts about the case are that they subpoenaed Tony Makris’ wife Elicia Warner Loughlin for documents and the case is being handled as you’d expect by Brewer, Attorneys and Counselors.

And that concludes what is public knowledge about the case because it appears to be under seal.

Knowledge that the case even existed is due to an article in The Trace by Will Van Zant posted on Thursday. You may not like that he reports for The Trace but he does get his facts correct. He discovered the case when he stumbled across a motion to quash the subpoena to Makris’ wife. That motion was filed in US District Court in South Carolina. Even knowing this, it took me several tries before I could find the motion.

According to the motion to quash the subpoena, it is contended that the subpoena is burdensome because it is overbroad and it asks for information of which she has no knowledge. Her attorney also contends that the subpoena’s secondary purpose is to annoy, embarrass, and harass Ms. Loughlin merely because Tony Makris is her husband. The motion notes that much of the information requested had already been provided to the NRA in their suit against Under Wild Skies in Virginia state court. It should be noted that the NRA lost that case and had to pay a little over a half million in damages to Under Wild Skies. In addition to what was previously provided to the NRA, Brewer is now demanding Ms. Loughlin’s personal and business tax returns for the years 2009-2018.

Ms. Loughlin is also asking for a protective order. As her attorney notes:

UWS is not a party to the above captioned litigation. Mrs. Loughlin is not affiliated with any of the Defendants, except for being married to Mr. Makris. The NRA is going to have to state with some clarity how seeking nine (9) years of tax returns from Mrs. Loughlin and her unaffiliated business entity is in any way related to the sealed action pending in Texas. The same would need to apply to the request for her deposition as she has already sat for a deposition at the request of this same party, the NRA. Quite frankly
nothing has changed since the first time she sat other than the fact that we have a new lawsuit in a different jurisdiction.

At this point it should be pointed out that not only did the NRA lose to Under Wild Skies in state court but ended up settling with AckMac to the tune of $12 million in their previous Federal lawsuit against them.

In his article about the current lawsuit, Van Zant reached out to Judge Phil Journey for comment. Phil said it seemed crazy to him and that if the facts aren’t on your side, you resort to BS.

An expert on sealed cases, Prof. Jane Kirtley of the University of Minnesota said there were usually only three reasons for a case to be sealed: to protect personal privacy, national security, or trade secrets. Prior to coming to the University of MN, Kirtley was the Executive Director of The Reporters Committee for Freedom of the Press

Van Zant quotes her as saying:

Simply wanting to avoid attention is not a valid basis, she said. “People that have disputes don’t have to use courts to settle them, they have other options,” Kirtley said. “The price of admission ought to be that the filing of a lawsuit is a matter of public record, and that if elements of a case are sealed, it’s only for legitimate reasons.”

Kirtley added:

Although judges are not supposed to seal cases merely because the parties would prefer anonymity, Kirtley said that too often they do. “Judges concentrate on the parties before them,” Kirtley said, “and if the parties are content with or agitating for secrecy, some courts don’t care and just go along to get along. But that ignores the fact that the public has an interest in open courts, in how cases proceed, in whether one party gets a break and another does not.”

Having searched for the case under its docket number (3:22-CY-1944-G) as well as a search by name in Pacer, I can confirm what Van Zant has said. No public record of this case can be found. Like him, I found that incredibly strange.

So to conclude, I have a handful of questions.

What is the purpose of this lawsuit by the NRA?

How much is Brewer making as a result of bringing another case against his late father-in-law’s company?

Why is it sealed?

And most importantly, is anyone on the Board of Directors even aware that the NRA is suing Ackerman McQueen again?

Report: NRA Loses Under Wild Skies Lawsuit

The blog NRA In Danger is reporting this evening that Under Wild Skies has won its breach of contract lawsuit against the NRA. Under Wild Skies and its host Tony Makris produced African hunting shows that featured NRA advertising and sponsorship. While the show and the NRA had a 26 year relationship and Tony Makris was Wayne LaPierre’s BFF, once Ack Mac and the NRA went to court, the payments were frozen. Makris is or was an executive with Ackerman McQueen at the time.

From NRA In Danger:

We’re told all of NRA’s claims were shot down, and the jury awarded UWS $550,000. It may be worse than that, as the court only allowed damages for payments already past due (maybe just for those past due when the complaint was filed in 2019), not for future payments as they come due over the remaining years of the contract. That means that UWS can probably sue again for the remainder.

We’re told that the Brewer team for NRA was 10-11 attorneys; UWS had 1 or 2. The Brewer firm likely made a mint on the case. A weeklong trial, after three years of fighting, with a team of 10-11 attorneys billing at up to Brewer’s $1,400 per hour. The legal fees alone must have run into the millions, perhaps tens of millions.

Under Wild Skies was represented by the Fairfax, Virginia law firm of Dycio and Biggs. I have an email in to the firm asking for confirmation as well as a comment. If I hear more on this, I will post it.

Why Does Marion Hate Appalachian-Americans?

You probably have read in the past former NRA President Marion Hammer’s warning about the “enemies within” and how they are going to destroy the NRA.

I always assumed she meant those of us who opposed her gravy train and board candidates or members who would not toe the party line.

Evidently I was wrong.

Thanks to a secret tape recording obtained by NPR of NRA officials talking about a response to the Columbine murders, Marion actually meant Appalachian-Americans. The more colloquial term for us – and I consider myself one – is “hillbilly”.

From the story:

“You know, the other problem is holding a member meeting without an exhibit hall. The people you are most likely to get in that member meeting without an exhibit hall are the nuts,” says LaPierre.

“Made that point earlier. I agree,” says Makris. “The fruitcakes are going to show up.”

Says Hammer: “If you pull down the exhibit hall, that’s not going to leave anything for the media except the members meeting, and you’re going to have the wackos … with all kinds of crazy resolutions, with all kinds of, of dressing like a bunch of hillbillies and idiots. And, and it’s gonna, it’s gonna be the worst thing you can imagine.”

So Wayne thinks those attending the Meeting of Members are “the nuts”, his former-BFF Tony Makris thinks they are “fruitcakes”, and dear old Marion refers to these dedicated members as “wackos”, “hillbillies”, and “idiots”.

Listen for yourself:

It is discouraging to know that the powers that be at the NRA think so little of their own members. If only more voting members would come to this understanding and actually vote, we might be rid of these parasites. In the meantime, it sucks that we have to put our hopes in the Attorney General of New York having some limited success in her lawsuit.

Ridicule Is Man’s Most Potent Weapon

Saul Alinsky‘s Rule Number 5 states, “Ridicule is man’s most potent weapon. There is no defense. It is almost impossible to counterattack ridicule. Also it infuriates the opposition, who then react to your advantage.”

Mike Spies of The Trace understands this very well and just unleased a torrent of ridicule upon Wayne LaPierre. Somehow – and I have my suspicions – he obtained the lost and unaired footage from a 2013 African safari that Wayne and Susan LaPierre took that was to have aired on Under Wild Skies. That show was hosted by Wayne’s former BFF Tony Makris and was sponsored by the NRA. I have been told that Makris and Wayne used the show to reward LaPierre loyalists with a paid-for safari in Africa.

The footage is part of an article that is running in both The Trace and The New Yorker.

The footage of LaPierre in Botswana first shows him walking through the bush dressed in loose-fitting safari attire and an NRA Sports baseball cap. He is accompanied by several professional guides and his longtime adviser, Tony Makris, a top executive at the N.R.A.’s former public-relations firm, Ackerman McQueen, and the host of “Under Wild Skies.” The heat, at times, causes LaPierre to sweat. As he walks, his wire-framed glasses slide down his nose. After a guide spots an elephant standing behind a tree, LaPierre takes aim with a rifle. As LaPierre peers through the weapon’s scope, the guide repeatedly tells him to wait before firing. LaPierre is wearing earplugs, doesn’t hear the instructions, and pulls the trigger. The elephant drops. “Did we get him?” LaPierre asks.

The guide at first says yes, but then, as he approaches the elephant, it appears that the animal is still breathing. The guide brings LaPierre within a few strides of the elephant, which lays motionless on the ground. He tells LaPierre that another bullet is needed. “I’m going to show you where to shoot,” the guide says. “Listen, hold your rifle—I’m going to tell you when. Just hold it up.” The guide pushes the rifle’s barrel skyward as other men involved in the expedition move around in the distance. “I’m going to point for you where to shoot. Just waiting for these guys.”

Needless to say, Bwana Wayne botches this and two more shots. Tony Makris is the one who has to deliver the final shot.

It appears that both Wayne and Susan are using custom Blaser rifles with engraved actions and beautiful wood that I was told a while back were billed to the NRA. I wonder what ever happened to them.

As the video makes clear, Susan is the better hunter and much better shot than Wayne. She is also much more excited by her trophy than is Wayne who looks kind of befuddled. You wonder if he isn’t just looking for a place to go and throw up.

The whole episode brings to mind that classic Hemingway short story The Short Happy Life of Francis Macomber. While Wayne didn’t run in the face of the elephant like Macomber did in the face of the lion, it took someone else to finish the job. Moreover, Wayne comes off as a bumbling incompetent and not the great white hunter in charge of an organization dedicated to preserving hunting and the Second Amendment.

I know this is coming from the Bloomberg supported The Trace. As I’ve said in the past, just because you don’t like the source doesn’t mean it isn’t accurate. Spies gets his information right because he knows he will be sued every which way if he doesn’t.

I hope to go to Africa in a couple of years to hunt plains game. Unlike Wayne, I will be paying for the trip myself. Also, unlike Wayne, I plan to get in a lot of shooting practice in advance especially from sticks. It appears that Wayne was not that familiar with his rifle and it shows. When you are given the chance for the hunt of a lifetime, you damn well ought to be ready.

They Can’t Claim Ignorance Any More

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.