Wayne LaPierre

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Thoughts On NRA General Operations Changes

December 8, 2023 by 3 Comments

In the last couple of days I’ve talked to a number of people about the replacement (firing?) of Joe DeBergalis with Andrew Arulanandam as Executive Director of General Operations at the NRA. The people have included both current and former directors, former NRA staff, and outside observers. The one theme that constantly was brought up is the bylaw provision (Article V, Sec. 2 (f)) that the Executive Director of General Operations serves as the interim Executive VP/CEO if the Office of Executive VP is vacant. He or she would then serve until the next meeting of the Board of Directors.

One theory was that Wayne LaPierre wanted an absolute loyalist heading General Operations in order to approve his legal bills in case the New York court removed him as Executive VP and CEO. This is not to say DeBergalis was not a loyalist to Wayne. One person went so far as to say “his head was up Wayne’s ass”.

Another theory that plays off the one above is the Bill Brewer orchestrated the change and wanted “his guy” in that position. One person who had butted heads with Brewer said Arulanandam was an “acolyte” of Brewer. DeBergalis was not considered, I am told, as amenable to the whims of Brewer. Thus, if Wayne is removed, Brewer has someone in position to keep the money flowing to him until it all runs out.

As to the Board of Directors having any advanced knowledge of this move by Wayne, I was told there was none. Jim Shepherd of the Outdoor Wires confirms that in his post today.

Speaking with a current NRA board members, it seems there was no conversation -at least with them- regarding the abrupt decision. DeBergalis, a retired former New York police official, is a former Board member and longtime NRA supporter.

We’ve reached out to him -and others- and have gotten no response as of this writing. If/when we get any insight, we’ll share it with you.

Wayne was within his powers to replace DeBergalis. Article V, Sec. 2 (c) of the Bylaws explicitly gives him that power without any recourse by the Board unlike the Secretary or Treasurer who can only be suspended with pay.

From all I’ve read over the years and the anecdotes I’ve heard, Wayne is a weak man who has a hard time making a decision. He has relied over the years on others to lead him. This has included his one-time BFF Tony Makris, his wife Susan, his late mentor Angus McQueen, and now Bill Brewer. If I had to bet house money, I would say that Bill Brewer convinced Wayne that it was in Wayne’s best interest to replace DeBergalis with Arulanandam. That it was also in Brewer’s interest should go without saying.

The trial in New York begins a month from today and the Board meets in Dallas on January 5th. All I can say is that January will be an interesting month.

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A PR Flack In Charge Of NRA General Operations?

December 6, 2023 by 1 Comment

You have to be f’ing kidding me. The NRA trial in the State of New York starts in approximately one month and Wayne LaPierre picks now to replace Joe DeBergalis, Executive Director of NRA’s General Operations, with the organization’s PR flack. What in the hell is going on?

Photo: WAVE 3 News

This went out today:

Effective immediately, I have appointed Andrew Arulanandam as interim executive director of NRA General Operations, replacing Joe DeBergalis. We wish Joe and his family all the best.

Andrew has more than 23 years of experience with the NRA, working for the Association and NRA-ILA. He currently serves as the managing director of public affairs. During his career, he has assisted with a wide range of corporate initiatives, messaging and crisis communications programs, and events at the local, regional, and national levels. He held numerous senior leadership positions in private and public organizations before joining the NRA.

Please join me in congratulating Andrew on his new position and in thanking Joe for his service to the NRA.

Wayne

I started hearing a rumor about DeBergalis being ousted yesterday but could not get a confirmation. Now I have nothing against Andrew Arulanandam other than I can never pronounce his name properly but this makes no sense whatsoever. His expertise according to his LinkedIn profile has always been politics and communications strategy.

As I said in the first paragraph, what the hell is going on in Fairfax? And why now?

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An Updated Analysis Of The NRA’s Finances

November 7, 2023 by 4 Comments

I have published financial analyses of the NRA by former board member Rocky Marshall in the past. Based upon an audit filed with the North Carolina Secretary of State’s Charities Division by the NRA, he has updated his analysis. I am publishing this with the permission of Rocky.

From Rocky:

RED FLAGS AND REALLY RED FLAGS

  • Revenue continues downward spiral as expenses (mostly legal) will likely increase in 2023-2024.
  • Net Income losses will likely continue 2023-2024.
  • Cash on hand is $12M and monthly expenses are $19M.
  • Recommended minimum cash on hand should be $57M.
  • Additional cash required to cover -$26m projected operating loss for 2023.
  • Additional cash required for contract liabilities of $40M to paid during 2023
  • Additional cash required to cover principal loan payments due in total of $28M during 2024.
  • Line of Credit and other Notes jumped 78%.
  • Increasing debt through loans to cover general operating expenses.
  • Capitalizes computers in excess of $500 and other fixed assets greater than $1,500.
  • Capitalization of purchases is artificially low and reduces expenses in order to boost net income.
  • Assets due from the NRA foundation are $31M and inflate the NRA balance sheet.
  • Most of the NRA foundations assets due have donor restrictions and cannot be used for general expenses.
National Rifle Association Financial Analysis Year Ending 2022    Estimate
(in millions $M)20212022$Change%Change2023
Revenue233.5213.5-20-9%203
Expenses228.2228.60.40%228.6
Net Income5.3-15.1-20.4-385%-25.6
Members’ Dues97.483.2-14.2-15%75
Cash30.412-18.4-61%10
Liquidity Assets65.943.1-22.8-35%34
Note Payable & LOC24.643.719.178% 
Contract Liabilities44.840.2-4.6-10% 
Total Investments717100% 
Total Investments pledges as collateral53.644.2-9.4-18% 
Percentage of Investments collateralized75%62%-13%-18% 

In a marginally related aside, NRA In Danger is reporting that Wayne LaPierre has put his house in Great Falls, VA on the market. The asking price is $2.4 million. NRA In Danger is taking this as confirmation that the powers that be have made the decision to move to Texas. As with the bankruptcy case, the Board has been kept in the dark until it was a done deal. Read his or her full post.

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NRA Still Wants A Jury Trial In Manhattan

July 31, 2023 by 2 Comments

Judge Joel Cohen ordered all the defendants and the New York AG’s Office to give a response on the matter of how the trial should be held. That is, should it be a jury trial or not? The responses from both sides were received this past Friday (July 28th).

Surprisingly, the NRA is sticking to their demands for a jury trial. I am in agreement with NRA In Danger that this is insane. A jury trial for the NRA in Manhattan is the equivalent of a jury trial for Donald Trump in DC meaning a totally unbiased jury pool is virtually impossible to find.

According to the response embedded below, the NRA is asking that a jury trial be held to determine the facts on all the causes of action against the NRA. These would include improper administration of assets, waste, and fiduciary failures. They are claiming they are entitled to this by right. Then, after the jury has determined the facts, the NRA says they would be amenable to having Judge Cohen determine equitable relief. In other words, they want a bifurcated trial with the jury portion coming first.

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This is also the position of the attorneys for Wayne LaPierre, Woody Phillips, and John Frazer.

The Attorney General’s Office agrees in part and disagrees in part with the call for a jury trial. Whereas the defendants are saying all the facts should be determined by a jury trial, the Attorney General agrees that should be only for causes of action 2 to 5 and 10 to 14. They contend on the first cause of action as well as causes of action 6 through 9 that they are not triable by a jury under New York law. They present a chart breaking this down found here in the appendix starting on page 9. So in one sense, all involved agree that a bifurcated trial – part by judge and part by jury – is called for. The difference is that the defendants want a jury trial to determine the facts in all the causes of action.

You will notice that the discussion above omits Josh Powell. That is because the attorneys for Powell filed a motion on July 13th to withdraw as counsel. Akin Gump Strauss Hauer & Feld LLP has represented Powell since the beginning of the proceedings. Powell in a separate filing gave his consent to this. A few days later Akin Gump filed motions to keep parts of the reasons for withdrawal under seal or non-public. Judge Cohen has temporarily put these under seal until a hearing can be held on August 7th.

On July 25th, the AG’s office filed a response to Akin Gump Strauss Hauer & Feld LLP’s withdrawal as counsel for Josh Powell. They took no position on Akin Gump’s withdrawal, insisted that Powell get a new attorney sooner than later, and that Judge Cohen should deny the motion to keep keep the reasons for withdrawal under seal. They assert that Akin Gump has not met it burden for sealing their submissions.

Reading closely, the reason Akin Gump and Powell are going separate ways is financial. The AG’s response said, “Powell’s Defense Counsel moved to be relieved, citing Powell’s inability to pay its legal fees.” Now that is interesting.

They also say that Powell should have only 14 days to retain a new attorney given how close the case is to going to trial. If he cannot, they say Powell should act as his own attorney or pro se in legal terms.

So to conclude, the NRA et all insist on a jury trial on all facts, the AG says only on some parts, and Josh Powell seems to have run out of money to pay his legal bills.

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The NRA Needs Its Own Independence Day

July 4, 2023 by 4 Comments

The National Rifle Association filed their own challenge to the BATFE pistol brace ban yesterday. This was after their attempt to intervene in SAF et al v. BATFE was denied as not timely among other reasons.

The NRA has and has had many excellent Second Amendment attorneys at their disposal. These include scholars such as Stephen Halbrook and David Kopel, appellate attorneys such as Paul Clement and Erin Murphy, and others such as Chuck Michel, David Jensen, and Dan Schmutter. In the past I would have also included the attorneys from Cooper and Kirk but they were considered “disloyal” by Wayne and Company and purged.

So who did they choose to handle their own challenge to the BATFE pistol brace ban? It had to be someone other than the attorney who just lost their motion to intervene, right?

Sadly, they went with William Brewer III again. Instead of going with a strong 2A attorney, they went with the attorney whose primary purpose seems to be to keep Wayne out of jail while getting as rich as possible in the process.

Why I don’t know and no one is saying. Even former 1st VP Willes Lee who has gone from stalwart Friend of Wayne to outspoken critic of the old guard is asking why.

Brewer seems to have the same insidious influence on Wayne and the Board as Rasputin did on Nicholas II and Alexandra. We all know how that ended for the Romanov Dynasty.

The NRA needs to declare its independence from Bill Brewer before he does any more damage to the organization – and the Second Amendment. Unfortunately, as things stand now, I see Brewer riding off into the sunset richer than ever and the NRA in shambles.

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2023 NRA Meeting Of Members – Resolution 3 (Updated)

April 19, 2023 by 4 Comments

The third resolution presented at the 2023 NRA Meeting of Members generated the most comment. It was a resolution from Jeff Knox that expressed no confidence in Wayne LaPierre as the Executive Vice President.

After NRA Secretary John Frazer read the resolution, Charles Cotton asked for those for and against it to speak. Those speaking in favor of it were Jeff Knox, Rob Pincus, John Carr, and Michael Mc (missed the rest of his name.)

When it came to speaking against it, the Friends of Wayne on the Board fought one another to express their confidence in Wayne as well as to attack Jeff either directly or through innuendo. These included Tom King, Mark Robinson, David Keene, Joel Friendman, and Jay Printz. There were two others that spoke against it but one of those was a comedian similar to Jason Selvig in 2022.

Here is Jeff’s resolution which failed again in 1/3 aye, 2/3 nay vote.

Resolution of No Confidence in Wayne LaPierre

Submitted by Jeff Knox, Endowment Life Member, Arizona

April 15, 2023

Whereas the NRA has seen a dramatic decline in Annual Members over the past 4 years, with sources indicating a drop of close to 30%, and

Whereas the NRA has experienced a significant declines in revenue over the past 4 years, with sources indicating declines of almost 50%, and

Whereas, between the years 2015 and 2018, the unrestricted net assets of the NRA declined by over 60 million dollars, and

Whereas 2018 saw financial belt-tightening, and the total collapse of the NRA’s heavily promoted, and very expensive Carry Guard program, which had only been introduced a few years earlier, and

Whereas, the advent of the SARS COV 2 pandemic caused layoffs of some 400 NRA employees, along with announced reductions in executive and managerial pay of 20%, and

Whereas, during this time of austerity measures, layoffs, significant financial losses, and growing legal expenses, in 2018, Wayne LaPierre, as Executive Vice President and CEO of the NRA, received a significant pay increase and a four hundred and fifty five thousand dollar “bonus,” bringing his total compensation that year to more than 2.2 million dollars, up from the 1.4 million he received in 2017, and for 2019 and 2020, while the layoffs and pay cuts were being implemented, Mr. LaPierre received compensation of approximately 1.7 million dollars each year, and

Whereas, along with this generous compensation, Mr. LaPierre received numerous other perks, including chartered, corporate jet travel at an average cost of seven thousand dollars per hour, limousine service, luxury accommodations, and a substantial expense and entertainment account, all totaling well over an additional million dollars per year, and

Whereas the National Rifle Association’s positions and objectives are supposed to be based on certain unwavering principles, beginning with the fact that the right to arms is an unalienable, fundamental, individual right, bestowed by our creator, and enshrined in the Constitution, and that restrictions on inanimate objects can never control the behavior of persons with evil and criminal intent, and

Whereas Mr. LaPierre, in his capacity as Executive Vice President of the NRA, publicly declared in 1999 that the National Rifle Association believes in “absolutely gun free, zero tolerance, totally safe schools.  That means no guns in America’s schools, period, with the rare exception of law enforcement officers or trained security personnel,” and

Whereas, at other times, while serving as Executive Vice President of the NRA, Mr. LaPierre has declared the NRA’s support for the creation of an “Instant Background-Check System,” declared the NRA’s support for laws requiring background checks for all firearm sales at gun shows, declared NRA support for so-called “red flag” laws, which provide for the confiscation of firearms from people accused of being a threat to themselves or others, with only bare consideration of due process, and declared that “the NRA believes that… (bump-stocks) …should be more tightly regulated,” and

Whereas President Trump subsequently acted on that last statement of support from the NRA, resulting in the Bureau of Alcohol, Tobacco, Firearms, and Explosives declaring bump-stock devices to be “machine guns,” effectively banning them under the Hughes Amendment, and

Whereas, while serving as chief lobbyist for the NRA, when the Hughes Amendment was attached to the Firearm Owners Protection Act as a “poison pill,” Mr. LaPierre asked the Republican Senate to agree to the amendment in order to pass the law, and asked President Reagan to sign the law, and subsequently stated that repeal of the Hughes Amendment would be the NRA’s number one priority going forward, but has never taken any substantive action toward repealing this travesty of a law, and

Whereas Mr. LaPierre has testified in court and on tax documents that he improperly charged personal and other unauthorized travel on multiple flights on chartered jets, and other unauthorized expenses to his NRA account, and

Whereas the various disclosures, revelations, and numerous substantiated accusations that have come out about Mr. LaPierre in recent years, along with his lack of principled stands on critical rights issues, have damaged the reputation of the National Rifle Association and its members, and have destroyed Mr. LaPierre’s personal credibility, severely limiting his abilities as a fund raiser or a political influencer on behalf of the NRA and its members, therefore, be it

Resolved, That the members here gathered for the 152nd Meeting of Members of the National Rifle Association, here gathered in Indianapolis, Indiana on this 15th day of April, 2023, do hereby declare that we have No Confidence in the ability of Wayne LaPierre to lead this organization going forward, and while we appreciate his contributions to the fight for rights over the past 40 years, we call on him to resign his position as Executive Vice President and to not seek reelection to that, or any other leadership position in the NRA at any time in the future, and, be it further

Resolved, That we call on the NRA Board of Directors to recognize the will of the members and ensure that Mr. LaPierre is not reelected to the office of Executive Vice President, or elected or appointed to any other office of importance within the National Rifle Association or its affiliated organizations, nor be awarded any contract or employment by any NRA-related entity, and, be it further

 Resolved, That the Secretary is instructed to cause a full, legible copy of this Resolution to be printed in the Official Journal of the Association within 120 days of the close of this meeting.

UPDATE: I did record Jeff Knox and Rob Pincus speaking in favor of this resolution. Their videos are below. In the one with Rob, you will seek Lt. Gov. Mark Robinson (R-NC) giving a loud defense of Wayne. While I like Mark, I find it incredibly sad that he had “drunk the Kool-Aid”.

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Tweet Of The Day

March 22, 2023 by

The tweet of the day comes from F-111 John in response to Tom Gresham on the “dear employee” letter sent out by Wayne LaPierre yesterday.

I must say I agree with his sentiment.

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“Dear Employee” Letter From Wayne

March 21, 2023 by 8 Comments

I had speculated in late February about whether some moves on rental space in the NRA Headquarters might be seen as a predecessor move to selling the building. This was based upon the reaction of commercial real estate brokers in both Virginia and North Carolina.

The letter from Wayne LaPierre to NRA employees sent out today confirms my speculation regarding the sale of the NRA Headquarters Building.

From Wayne:

Dear Employees,

As you know, the NRA continuously pursues new business and strategic options in the interests of the Association and our members. Along these lines, we are going to explore the marketability and potential sale of our headquarters.

The NRA has long considered a move of its headquarters – and has been working to identify a new location that allows us to enhance our advocacy and national platform, recognize operational efficiencies, and become an even stronger organization. Assuming we find such a location and favorable opportunity to sell the HQ, we will present such plans to the Board of Directors for approval. I want you to be aware of these ongoing developments.

Naturally, there will be no impacts to our staffing, our programs, or our Second Amendment advocacy as we explore this opportunity and many others. We remain committed to the fight for freedom.

Thank you for your support of our mission.

Sincerely,

Wayne

On the plus side for the NRA is that they bought the building years ago at a fire-sale price. On the downside, with rising interest rates, a move towards “work from home, and many newer, updated buildings in the Northern Virginia inventory, it is a buyer’s market.

There is a reason the headquarters of the NRA has traditionally been in the Washington, DC metro area. It is the seat of government and the NRA, like many other organizations, wanted to be close to that. When there was an effort to relocate the NRA out West, it led to the Cincinnati Revolt. Unfortunately, the rules in place at that time have been changed so drastically, that another such revolt – an Indy Revolt, if you will – can never again happen.

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NRA Moves Of Note

March 16, 2023 by 7 Comments

Two interesting developments concerning the NRA crossed my desk today. One was expected in the sense that the position had to be filled and the other has me wondering.

First, Randy Kozuch has been appointed to be the Interim Director of the NRA-ILA. The position had to be filled with someone after Jason Ouimet left as the Director of the ILA. There are boards and foundations within the NRA that specify the Director of the ILA must be a member. If I remember correctly, Kozuch was a candidate for the position when Chris Cox resigned. He had served as ILA head of state and local affairs.

According to the press release, Kozuch has been with the NRA for 29 years and had “overseen state lobbying efforts in all 50 state legislatures and served as the primary point of contact between NRA and the nation’s governors and state constitutional officers.” I will leave that statement there as is and refrain from any comments on his effectiveness in North Carolina.

The second development is of far more interest. A “Dear Director” email went out today from former NRA President David Keene. Under the current bylaws (Article V, Sec. 1 (a)), the president of the NRA “may not succeed himself or herself more than once, after being elected to serve a full term.” There is an exception made in the bylaws for the late Charlton Heston who was allowed to succeed himself up to four times.

A resolution is being submitted by Carol Frampton and Joel Friedman that would waive this limitation for current NRA President Charles Cotton and allow him to serve a third one-year term as President. The email from Keene is below:

Dear Fellow NRA Director.

This morning’s mail brought a copy of the resolution submitted by Carol Frampton and Joel Friedman to extend NRA President Charles Cotton’s term for another year. We will be asked to vote on this resolution at the Indianapolis Board meeting and it is my hope that you will join me in supporting it.

As a former NRA President, I can tell you that during challenging times, I know of no one in that job who would want an additional year on the firing line, but sometimes sacrifices are necessary for the good of the association membership and the Second Amendment. As a competent and careful attorney, himself, Charles has been a steady helmsman during the legal battles in which we have been enmeshed during his term. These battles should wind down over the course of the next year and he should be there to serve our interests during this crucial period. He deserves our thanks not just for what he’s accomplished thus far but for his willingness to allow us to ask him to carry on for another year.

David A. Keene

I find this quite interesting. It engenders a lot of questions as to the reasons behind this move. I don’t have any answers to them. Cotton’s term as President would normally end in April at the next Board meeting. At that time, First VP Willes Lee would be the successor to Cotton as President and David Coy would move into Lee’s position. A new Second VP would be selected at that time.

One potential reason, and the most innocent, is that the terms of office were interrupted during the pandemic years of 2020 and 2021. The Annual Meeting happened later in the year which screwed things up a bit.

It could also be that Wayne and Brewer prefer to keep Cotton in the position while the New York proceedings are active. As Brewer plays Rasputin to Wayne’s Czar Nicholas II, this is believable. The shots are being called by Brewer and the Board does what they are told to do by Wayne.

Another alternative is that there is a faction who want to prevent Willes Lee from assuming the position of President of the NRA. His past actions as the leadership’s number two hatchet man (Marion Hammer holds the number one position) are coming back to bite him. I have referred to Lee as the Spiro Agnew of the NRA in the past. While that might be an insult to Agnew, Lee has served that role as Agnew did Nixon.

In the end, if this email is being sent out now, it is a fait accompli or done deal. The overwhelming majority of the Board does what it is told like obedient children. There are only a few members who have rocked the boat and they will be off the Board come the Annual Meeting. The sad thing is I have more faith in NY Assistant AG Monica Connell to represent the members of the NRA than I do in the Board.

UPDATE: Here is a copy of the actual resolution. It is a screen shot.

The resolution has been added to the agenda of the Bylaws and Resolutions Committee.

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NRA Finances And An Interesting Proxy

February 9, 2023 by

The blog NRA In Danger has posted another look at the NRA’s finances by former director Rocky Marshall. As I noted in introducing his guest post on this blog, he has significant expertise in examining a company’s or organization’s finances. Rocky brings up the concept of industry related metrics as a way to validate financial forecasts. As it is, he holds that the NRA’s forecasts for revenue are unrealistic and have no substantiating business plan to validate them.

From Rocky at NRA In Danger:

A Realistic Projection: The obvious relationship most closely associated with NRA revenues are U.S. Gun sales¹. In reviewing US gun sales data, NRA Revenues will increase or decrease as gun sales vary from year to year. From 2004 through 2019, the NRA received on average $25 for every gun sold in the United States.  However, after the breaking news of corruption in 2019, the NRA revenue dropped 48% to $13/gun sold.

The ratio of NRA Revenue/US Gun Sales is a useful metric because revenue for the NRA can be easily calculated for 2023 with a high degree of certainty.  Based on the current declining trend of US gun sales, it is projected that total US gun sales will be similar to historical (pre-covid) norms of roughly 13 million guns sold². With this in mind, a quantifiable estimate of projected revenues for the NRA in 2023 is $169 million (13 million guns sold at $13/gun). 

The NRA is projecting $230 million in revenue, which would equate to $18 for every gun sold in the US.  This is the same group that also planned $241.2M for last year and missed this estimate by $36M. The NRA estimates are not based on any practical industry metrics or upon a viable business plan to increase revenue; but, instead are misleading the BOD once again into a false premise.  

Using firearm sales as a proxy in the metric is interesting and makes sense. Both actual gun sales and actual NRA revenue are known from government reports. Actual gun sales are found from the Annual Firearms Manufacturing and Exportation Report submitted to BATFE and the NRA”s revenue is reported on the IRS Form 990. Forecasts on future firearm sales do come from the NSSF and the industry in various forms. The FBI’s NICS data could be used but, as we know, it isn’t a direct correlation with firearm sales. The NSSF-adjusted numbers would be more accurate.

When comparing the ratio of NRA Revenue/US Gun Sale for the pre-2019 and post-2019 time periods, there is another factor in play that was not mentioned. Pre-2019, it was often the case that if you purchased a new firearm from one of the major manufacturers, it would come with a coupon entitling the buyer to a free one-year membership in the NRA. I know Taurus offered this and I seem to remember getting the same offer from Marlin and Ruger. I also remember the Ruger campaign where they would donate $1 for each firearm sold if they reached the 1 million mark. That was in the 2012-2013 timeframe. The key point here is that the industry seems to have backed away from the NRA once the dirty laundry started coming out.

The second part of Rocky’s post on NRA In Danger deals with the cost of corruption in terms of lost revenue. Read the whole thing as Rocky provides hard numbers of the revenue drop and the amount is shocking. Suffice it to say, the longer that Wayne remains as CEO/Executive VP of the NRA, the more potential lost revenue.