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Home Front: Politix

New York seeks to break up National Rifle Association, alleging financial mismanagement

2020-08-07

[Reuters] New York state's attorney general sued to dissolve the National Rifle Association on Thursday, alleging senior leaders of the non-profit group diverted millions of dollars for personal use and to buy the silence and loyalty of former employees.

The lawsuit announced by Attorney General Letitia James alleges NRA leaders paid for family trips to the Bahamas, private jets and expensive meals that contributed to a $64 million reduction in the NRA's balance sheet in three years, turning a surplus into a deficit.

James alleged in a statement that NRA leaders "used millions upon millions from NRA reserves for personal use," failing to comply with the NRA's own internal policies in addition to state and federal law.

In announcing the lawsuit, James told reporters the NRA "has operated as a breeding ground for greed, abuse and brazen illegality." She added "no one is above the law" - including the NRA.

At the same time, the attorney general for Washington, D.C.,

... that’s Karl Racine...

filed suit against the NRA and its foundation, alleging the misuse of charitable funds and wasteful spending.

The confrontation pits James, a Democrat, against the largest and most powerful gun organization in the United States, one that is closely aligned with President Donald Trump's Republican Party.

The NRA, which teaches gun safety in addition to advocating laws making it easier for Americans to own guns and ammunition, is subject to New York law because it is registered as a non-profit organization in New York, where it conducts most of its financial transactions.

The NRA, which has its national headquarters in Fairfax, Virginia, about 20 miles (30 km) west of Washington, D.C., did not immediately respond to a request for comment.

New York state and the NRA have tangled before. The state has taken legal action against NRA-branded insurance policies sold to gun owners, and the NRA is suing the state for closing gun stores under an executive order to halt the spread of COVID-19.

The latest lawsuit names the NRA as a whole and four senior executives of the group including Wayne LaPierre, the executive vice-president who has been atop the leadership for decades.

It also names former Treasurer and Chief Financial Officer Wilson Phillips, former Chief of Staff and Executive Director of General Operations Joshua Powell, and Corporate Secretary and General Counsel John Frazer.

The suit charges the NRA with "awarding contracts to the financial gain of close associates and family, and appearing to dole out lucrative no-show contracts to former employees in order to buy their silence and continued loyalty," James's office said in a statement.

"The failure of the NRA to comply with multiple fiduciary responsibilities and state and federal laws resulted in the NRA seeing substantial losses on its balance sheet: going from a surplus of $27,802,714 in 2015 to a net deficit of $36,276,779 in 2018 - contributing to a total loss of more than $64 million in just three years," the statement said.

In addition to attempting to close down a group that has existed since 1871, James seeks to recover millions of dollars in lost assets and to stop the four executives from serving on he board of any other not-for-profit group in the state.

Wonder if it has anything to do with this?:
Exclusive: NRA Plans to Spend ’Tens of Millions’ in Battleground States

DC Attorney General Is Suing the NRA Foundation
[Washingtonian] The lawsuit by Karl Racine alleges the NRA's charitable wing funneled money to the gun lobbying group.

While the NRA is incorporated in New York, the NRA Foundation, its charitable wing, is incorporated in the District. Both are headquartered at the same address in Fairfax, Virginia. According to Racine’s lawsuit, an OAG investigation found that the NRA’s financial problems in recent years prompted it to lean heavily on the Foundation for funds, including two $5 million loans in 2017 and 2018, one of which has not been repaid. The lawsuit also alleges a series of fee schedules and other financial schemes to funnel more money to the NRA.

Posted by:Anomalous Sources

#18 So, is there some way we could sue to break up New York for financial mismanagement?
Asking for a friend.

Posted by: ed in texas 2020-08-07 21:47

#17 She is also trying to freeze the NRA funding for the election.

Good point. Ties up human resources as well.

Posted by: swksvolFF 2020-08-07 21:12

#16 Oliver North forced out as NRA president amid bitter power struggle
This article is more than 1 year old
North, in conflict with chief executive Wayne LaPierre, says he was ‘informed’ he would not be renominated when term ends

Secrecy, Self-Dealing, and Greed at the NRA
The organization’s leadership is focused on external threats, but the real crisis is of its own making.

Interesting read

Posted by: Woodrow 2020-08-07 19:47

#15 New York seeks to break up National Rifle Association, alleging financial mismanagement

..and then there is Congress which makes the NRA look like little kids lemonade stand by comparison if you want to talk financial mismanagement. Then we can start with all the state governments and their public employee ponzi pension plans.

Posted by: Procopius2k 2020-08-07 15:20

#14 Why all female African American DA's look the same to me?

I’m sure the Soros PAC (or those of the other Progressive multibillionaires who like to spend their couch change this way) finding and funding them also provides training in dress and general appearance to all their candidates, not just the female African-Americans.

Posted by: trailing wife 2020-08-07 13:23

#13 She is also trying to freeze the NRA funding for the election.

Posted by: 49 Pan 2020-08-07 13:14

#12 She is doing more to boost revenue for the NRA than any other event. Watch the dollars roll in.

Posted by: 49 Pan 2020-08-07 12:24

#11 I thought Wayne LaPierre had been canned by the members. Screwing with funds for personal use.

Posted by: Woodrow 2020-08-07 12:22

#10 Throwing mud and driving a splitting wedge is worth the taxpayer's money.

Posted by: swksvolFF 2020-08-07 10:56

#9 ..its a family thing. It's no longer just the patriarch.

Posted by: Procopius2k 2020-08-07 10:18

#8 Soros backed AGs? Soros needs to hurry up and have a terminal stroke so he can meet his master in hell.

Posted by: Marilyn Tojo7566 2020-08-07 08:46

Posted by: Clem 2020-08-07 07:29

#6 Have they been convicted of anything?

Direct assault upon the 1st Amendment right of free association, right of free speech. See, its not just about the 2d Amendment. Time to get serious and use TITLE 18, U.S.C., SECTION 242 against the perp.

Posted by: Procopius2k 2020-08-07 07:25

#5 Break-up of the Clinton Foundation should be any day now then.

Posted by: Clem 2020-08-07 07:22

#4 Yes. Any organization in NY that commits financial mismanagement ought to be disbanded.

Posted by: gorb 2020-08-07 05:06

#3 Why all female African American DA's look the same to me? Am I just being a racist, or are they mass produced somewhere?

Posted by: g(r)omgoru 2020-08-07 03:34

#2 The suit charges the ~~NRA~~ ~~Republicans~~ ~~Democrats~~ Congresswith "awarding contracts to the financial gain of close associates and family, and appearing to dole out lucrative no-show contracts to former employees in order to buy their silence and continued loyalty," James's office said in a statement.
FIFY

Posted by: magpie 2020-08-07 01:53

#1 AG James is correct that there were many financial misdeeds in the NRA but this is a truly weird lawsuit.

If financial misdeeds can be used to require de registration of non profit groups, then it can justify de registration of such orgs as the Red Cross, the democrat and republican party, planned parenthood and many, many more.

Posted by: lord garth 2020-08-07 00:41

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