NY state sues to dissolve NRA

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Re: NY state sues to dissolve NRA

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Re: NY state sues to dissolve NRA

Post by Crossroads Inc. »

Well at least they actually bothered to add the "Not in NY" to it.
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Re: NY state sues to dissolve NRA

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In a Smoothbrain move, NRA is planning Chapter 11 Bankruptcy and a move to Texas.
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Re: NY state sues to dissolve NRA

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MKSheppard wrote: 2021-01-16 05:18pm In a Smoothbrain move, NRA is planning Chapter 11 Bankruptcy and a move to Texas.
You forgot the part where their spokesperson stated publicly the following
AP wrote:The NRA emphasized in its statements Friday that it was not in financial trouble and focused on political reasons for leaving New York.

The NRA listed between $100 million and $500 million in liabilities, the same range it reported for its assets, in its filing. The organization claimed in its press statements it is in its “strongest financial condition” in years.

“The NRA is not insolvent,” the group said in a statement. “This action is necessitated primarily by one thing: the unhinged and political attack against the NRA by the New York Attorney General.”
NRA says quiet part out loud

1. You can't exit a state to avoid prosecution
2. You sure as heck should not do it while loudly announcing your leaving to avoid prosecution
3. You also can't declare chapter 11 to avoid prosecution
4. It's very illegal to make public statements which are false about your financial situation, doubly so when your catch-22 yourself by telling a bankruptcy court one thing and the public another

This really feels like the NRA leadership has from the top on down been replaced by their less competent offspring.

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Re: NY state sues to dissolve NRA

Post by bilateralrope »

Sounds like they think the law is something that only happens to other people.
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Re: NY state sues to dissolve NRA

Post by MKSheppard »

Mr Bean wrote: 2021-01-16 06:10pmYou forgot the part where their spokesperson stated publicly the following
I didn't catch up on that. It's basically a smoothbrain move.

Here's the summary basics of the NRA mess as I've recounted it to others:

A.) Wayne has been bleeding the NRA dry for at least 20 years (ever since he ultimately purged Neal Knox in 1997-98).

B.) This all started over Josh Powell at NRA HQ hitting on an Ackerman McQueen intern, AckMack calling Wayne out on this, and Wayne refusing to back down, so AckMack pulls out their burn books on the NRA.

C.) How AckMack's burn books caused Oliver North to say "hey wait a minute", and getting fired for investigating.

D.) How Chris Cox, the 20~ year head of NRA-ILA, was fired -- ostensibly because he supported Ollie North, but in reality, because he objected to Wayne's attempt to raid NRA-ILA coffers to fix the NRA parent organization's books (you're not supposed to do that, they're supposed to be separate for various legal reasons). And THEN Chris Cox's successor was also fired, leaving NRA-ILA in shambles.

E.) How Wayne can't resign or leave, due to NRA D&O indemnities; likewise how Wayne has the Board of Directors by the short and curlies, because they need that Directors & Officers' indemnity for legal troubles....

Another member on a gun board summarized it as:
Reasons why firing Wayne LaPierre is difficult

1. There is no Board of Directors phone tree. The board has limited internal comms, and everything routes through NRA HQ. They do not have NRA issued email addresses (not all at least) or phone numbers, and no roster is distributed to board members. This makes coordinating things challenging.

2. The Brewer law firm (remember the $97k/day legal fees NRA is paying) allegedly maintains burn books on NRA staff members and directors. Brewer reports to LaPierre / NRA officers (not the board).

3. The NRA will cut off their legal fee indemnification - we've seen this happen to Oliver North. North is being subpoenaed for material related to his time as NRA President, but the NRA has sued to prevent his legal fees from being covered by NRA.

4. No Director and Officer insurances means you only get legal protection if the NRA officers decide to give it to you, as they control the NRA purse strings.

5. (Pertaining to the language used in resignation letters) Non-disclosure agreements and non disparagement agreements are a bitch.

6. The NRA still has some clout and LaPierre can still wield that to make life unpleasant for those that oppose him.

7. To suspend a salaried officer, you need 75% of the executive committee (which is fiercely loyal to LaPierre). To remove a salaried officer, you need 75% of the entire board to vote them out, and 15 days written notice before the meeting.

8. The board members are being subpoenaed by the New York Attorney General. NRA legal team is covering this right now. If they oppose LaPierre, they had better have a good deal on legal fees worked out with their attorney or very deep pockets.

9. If New York Attorney General succeeds in her case against NRA, there will be significant monetary losses to the organization. The only recourse for the organization and its members is to go after the directors and officers to attempt to recover those loses.... it behooves them to continue to work together as a cabal and maintain a tightly knit facade, not for the sake of the NRA but for their own chance at still having some control of the association to deflect against claims being made against their personal assets.

10. Numerous board members are paid by the NRA (the buck stops with LaPierre when it comes to approving those checks) for various and sundry services, such as $300k per year to Marion P. Hammer for lobbying (yet she is not a registered lobbyist). Opposing Wayne LaPierre puts these payments, both past and future, in jeopardy.

----------------------- Let's Recap!!! -----------------------

1. Wayne LaPierre cannot step down. Doing so would expose him to liability for everything that has happened at NRA, to include potential criminal liability. He is personally safest where he is at, enjoying the benefits of the NRA's legal team to protect himself. It would be irrational and ludicrous for Wayne LaPierre to willfully leave his post.

2. The board cannot remove Wayne LaPierre. Those on the executive committee, and many others, would become personally exposed by removing him, as removal of LaPierre is tantamount to admitting that he has been allowed to go too far, which indicates the board failed to exercise its duty of care and fiduciary responsibility. The only rational choice for board members is to resign their position in a polite and neutral manner (without violating any non-disclosure and non-disparagement agreements) or to carry on in open support of LaPierre.

3. Since LaPierre cannot reasonably step down without exposing himself to heightened liability and risk, and the board cannot rationally fire him without exposing themselves to heightened liability and risk, the snakes will continue to slowly eat each other by the tail until the NRA coffers run dry.

4. Expecting Wayne LaPierre, or members of the NRA board of directors, to make a choice that is irrational and opens themselves up to extreme personal risk for civil litigation, financial consequences, or criminal charges, is irrational. Do you really expect these men and women to fall on their swords for your rights??
In closing, people have been telling the NRA to get out of New York State (where it was originally chartered in like 1878) for decades.

But there's a problem with simply moving from NY, besides a hostile New York AG crawling up your ass.

I am no tax/nonprofit lawyer, but apparently when a Non-profit wishes to reincorporate in a new state, there has to be a complete financial accounting before the books are closed out, in order to prevent nonprofit fraud.

This has been why the NRA hasn't reincorporated away from NY -- because in order to do it by the books, you have to go into a forensic audit of the NRA's books that haven't been done since at least 1997.

Declaring chapter 11 bankruptcy to skirt the legal requirement for a forensic audit for reincorporation is the kind of smooth brain move you'd expect from Wayne LaPierre.

it's....it's like burning down your house to get rid of a mouse infestation.

The NY Judges will just love this in the cases currently ongoing.
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Re: NY state sues to dissolve NRA

Post by EnterpriseSovereign »

Mr Bean wrote: 2021-01-16 06:10pm
MKSheppard wrote: 2021-01-16 05:18pm In a Smoothbrain move, NRA is planning Chapter 11 Bankruptcy and a move to Texas.
You forgot the part where their spokesperson stated publicly the following
AP wrote:The NRA emphasized in its statements Friday that it was not in financial trouble and focused on political reasons for leaving New York.

The NRA listed between $100 million and $500 million in liabilities, the same range it reported for its assets, in its filing. The organization claimed in its press statements it is in its “strongest financial condition” in years.

“The NRA is not insolvent,” the group said in a statement. “This action is necessitated primarily by one thing: the unhinged and political attack against the NRA by the New York Attorney General.”
NRA says quiet part out loud

1. You can't exit a state to avoid prosecution
2. You sure as heck should not do it while loudly announcing your leaving to avoid prosecution
3. You also can't declare chapter 11 to avoid prosecution
4. It's very illegal to make public statements which are false about your financial situation, doubly so when your catch-22 yourself by telling a bankruptcy court one thing and the public another

This really feels like the NRA leadership has from the top on down been replaced by their less competent offspring.
How the hell do they expect to get away with that?
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Re: NY state sues to dissolve NRA

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EnterpriseSovereign wrote: 2021-01-21 07:42pm How the hell do they expect to get away with that?
That's the $500 Million Dollar Question, ain't it.
I'm assuming they think they got someone in their pocket, or another "out" that they can exploit.
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Re: NY state sues to dissolve NRA

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LadyTevar wrote: 2021-01-21 07:51pm
EnterpriseSovereign wrote: 2021-01-21 07:42pm How the hell do they expect to get away with that?
That's the $500 Million Dollar Question, ain't it.
I'm assuming they think they got someone in their pocket, or another "out" that they can exploit.
Don't rule out sheer arrogance. As the capitol riot showed, right-wingers are used to being catered to and treated with kid gloves.
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Re: NY state sues to dissolve NRA

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Ralin wrote: 2021-01-21 08:02pm
LadyTevar wrote: 2021-01-21 07:51pm
EnterpriseSovereign wrote: 2021-01-21 07:42pm How the hell do they expect to get away with that?
That's the $500 Million Dollar Question, ain't it.
I'm assuming they think they got someone in their pocket, or another "out" that they can exploit.
Don't rule out sheer arrogance. As the capitol riot showed, right-wingers are used to being catered to and treated with kid gloves.
Heh... Wonder if they were expecting a Pardon.
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Re: NY state sues to dissolve NRA

Post by bilateralrope »

I see another option: Trying to delay by any means they can think of, hoping to buy themselves enough time to be able to flee somewhere.
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Re: NY state sues to dissolve NRA

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bilateralrope wrote: 2021-01-21 08:44pm I see another option: Trying to delay by any means they can think of, hoping to buy themselves enough time to be able to flee somewhere.
I see a third option, they have been in fundraising mode about the threat of the left for so long it's the only playbook they have remaining. After sitting on it for the last two days I read that press release with fresh eyes. It is the same language they use in their fundraising emails and communications, in fact I'm hard press to find anything the NRA does these days not implicitly aimed at raising money.

I have to wonder, do they have any policy people left? Since Guns = Good and Less Guns = Bad... has everyone with more nuance left the organization?
It would explain a great deal if Jimmy the email appeal guy was asked to write the press release and not letting a chance to go by, writes the press release equivalent of an appeal for donations for the 329th time and sends it out into the world sight unseen by anyone senior because hey Jimmy keeps the money flowing in.

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Re: NY state sues to dissolve NRA

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Mr Bean wrote: 2021-01-22 08:09am I have to wonder, do they have any policy people left? Since Guns = Good and Less Guns = Bad... has everyone with more nuance left the organization?
AFAICT the main policy position now is "Guns = Good, Money for Wayne LaPierre = Better".
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Re: NY state sues to dissolve NRA

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Knife wrote: 2020-08-07 11:58pm Yeah, ever since La Piere made it his private slush fund something like 20-30 years ago, I won't shed a crocodiles tear for this.
That's the truth. A lot of people have either bailed on them or been run out because of La Piere and his cronies.

They haven't even done a good job protecting the 2nd Amendment. They do token things and propagandize like crazy to keep the money coming in. They also never stop asking for more money.

I think Oklahoma has it's own guns rights group and from what little I've heard of them they seem pretty decent at least as far as fighting for/against anti-gun legislation.
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Re: NY state sues to dissolve NRA

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https://www.reuters.com/world/us/us-ban ... 021-05-11/
The National Rifle Association cannot use bankruptcy to reorganize in gun-friendly Texas, a federal judge in Dallas ruled on Tuesday, handing a defeat to the influential firearms rights group that is facing an effort to dissolve it in New York state.

U.S. Bankruptcy Judge Harlin Hale's decision, following a trial over the legitimacy of the NRA's January bankruptcy filing, means the group will remain incorporated in New York.

Letitia James, New York's attorney general, had last August filed a lawsuit seeking the dissolution of the NRA, which she accused of corruption and misspending.

"The question the court is faced with is whether the existential threat facing the NRA is the type of threat that the Bankruptcy Code is meant to protect against," Hale wrote. "The court believes it is not."
https://storage.courtlistener.com/recap ... 40.0_1.pdf
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Re: NY state sues to dissolve NRA

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Odd, Wayne's brilliant idea to tell the NRA board everything is fine and donations are up and the bankruptcy court the opposite didn't pay off. I wonder if it was when their spokesperson when on Fox News and said they were moving to Texas to avoid the New York Law suite.

Wonder what it was, the lying, the obvious lying or the bad lying?

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Re: NY state sues to dissolve NRA

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Go to the NY Court System:

https://iapps.courts.state.ny.us/nyscef/CaseSearch

Punch in CASE IDENTIFIER TAB

=========

If you don't know the format of the case number you are trying to search, you can enter the case number separately from the year. The year is optional.

Case Number
451625

Year
2020

======

That brings up

People of the State of New York, by Letitia James, Attorney General of the State of New York v. The National Rifle Association of America, Inc. et al

=====

Go to the last page of depositions and get document #333: "COMPLAINT (AMENDED)"

NRA In Danger did an analysis of it:
https://nraindanger.wordpress.com/2021/ ... complaint/
The Attorney General has filed an amended complaint, 187 pages long. The original complaint was brutal, this is beyond that. Staff and some directors are looting the corporation for millions or tens of millions. The Audit Committee (Charles Cotton, chair and soon to be NRA president) ignore their duties and rubber-stamp the looting. The board is rubber-stamping everything, even handing LaPierre loot that he didn’t ask for. LaPierre diverts NRA resources into influencing board elections. Tax forms have been falsified. When the treasurer refused to sign the IRS Form 990, LaPierre fired him. He refused to sign because he asked for documentation, it was refused, and he asked other officials to at least vouch for its contents, and they refused. The supposed reforms are a not even a good sham, the looting continues and the board could care less so long as it gets its dinner and drinks. Here is a skim of the amended complaint.

Paras 150 on, private leased jets used for LaPierre’s relatives’ convenience, at NRA cost of $8,000-107,000 per trip. Women’s Leadership Forum used as Susan LaPierre’s slush fund. “From May 2015 to April 2019, the NRA incurred over one million dollars in expenses for private flights when LaPierre was not a passenger.” That is, for his relatives, and when his security cannot be claimed as a justification.

His “travel consultant” for the leased jets got fortunes to arrange trips for him and maybe two other employees. “The then-Treasurer testified that, in the fall of 2018, the NRA eliminated “all non- mission-critical travel” to reduce the NRA’s expenses. Following the elimination of non-mission critical travel, payments to LaPierre’s Travel Consultant dropped by nearly 50%—from $2.9 million in 2017 to $1.5 million in 2019. “

“In its annual filings with the Attorney General for 2014 to 2018, the NRA asserted that it required substantiation prior to reimbursing these expenses. The Attorney General has not found any evidence that the private flights and related business uses were substantiated prior to reimbursement.”

Para 166 onward, LaPierre yacht trips and Bahamas vacations. Private jet trips there eight times, on most trips after picking up his niece in Nebraska. Cost to NRA over half a million. Celebrity retreats hosted by NRA vendors who have received over $100 million from NRA. 20 private jet flights to Los Angeles to meet with them, while staying at 5 star hotels.

Para 199 onward, LaPierre’s personal expenses billed to NRA. Big Christmas present bills. $1,340 per night hotel rooms for LaPierre’s niece. $37,000 for safari expenses. $100,000 for his golf club membership.

Para 217 onward. LaPierre’s security budget. Several million dollars per year. Armored vehicle procured without complying with NRA purchasing policy. The Texas mansion. Treasurer Phillips ordered $70,000 earnest money check to be sent to shell company without IRS W-9 or complying with NRA policies.

Para 230 onward, former treasurer Woody Phillips. Had “personal relationship” with a vendor whose CEO got $1.4 million from NRA. Received yacht uses from vendors. When he retired, got a big consulting contract. President and 2nd VP authorized it without asking board, as is required. $360,000 per year for five years. Took Fifth Amendment when questioned.

Para 252 onwards, Josh Powell. Salary $250,000, one month after hiring increased to $500,000 retroactively. Then to $800,000, plus expenses paid in violation of NRA policy. He and Phillips authorized verbal contracts with vendors for millions.

Para 286 onward, John Frazer. Legal experience a year and a half, none in corporate or non profit law or New York law. Paid about $400,000. Failed to comply with NY law. False certifications to NY.

Para 297 onward, “LaPierre’s Senior Assistant,” which fits Millie Hallow. “LaPierre’s Senior Assistant joined the NRA with a criminal record of embezzling from a non-profit where she had worked in the 1980s.”

“At some point in the 2000s, LaPierre’s Senior Assistant was accused of diverting money from the NRA to use for personal expenses. This prompted an investigation by the NRA Board and an external auditor, which resulted in LaPierre’s Senior Assistant’s NRA credit card being taken away. However, even though her corporate credit card was taken away, she continued to have access to and use of other NRA employees’ corporate credit cards, including the CFO’s.” She had NRA pay $18,000 for her son’s wedding costs. Routinely hired “black cars” to take her to airport, etc., at costs of over a thousand per day. Other employees didn’t question it because they were so accustomed to her using NRA money for her own purposes. Audit Committee was informed of abuses, and retroactively approved them. NRA tax form admits she diverted $41,000 of NRA money, yet she remains employed at full salary.

Para 311 onward. “LaPierre’s Improper Use of NRA Funds to Influence Board Elections.“at LaPierre’s direction, the NRA hired employees to organize and oversee a grassroots network of volunteers to promote LaPierre’s favored candidates. Upon information and belief, the NRA paid the travel expenses of these volunteers to, among other things, hand out promotional materials for LaPierre’s favored candidates at NRA annual meetings.”

Para 314 onward, the PR firm Ackerman. Used as pass-through for money to avoid IRS reporting. “Under the umbrella of “Pass-through Expenses,” the NRA paid for millions of dollars in entertainment and travel expenses incurred by NRA executives and associates— including LaPierre and Powell—without scrutiny from within the organization.” So much here, can’t list it all.

“LaPierre also used the pass-through arrangement to conceal private travel and trips that were primarily personal in nature. Upon information and belief, LaPierre directed Ackerman to pay for expenses related to NASCAR events, country music events, and even medical visits, and bill those through to the NRA.” Lodging on one personal trip nearly $10,000. When LaPierre travelled, Ackerman would send a person to escort him, often advanced several thousand for meals and tips.

NRA’s director of advancement (a former Ackerman executive) did the same. “He routinely stayed in suites costing over $1,500 a night.”

“LaPierre’s wife would incur thousands of dollars of expenses per event for hair and makeup services, which were billed through Ackerman as out of pocket expenses. For example, between May 2016 and May 2017, the NRA paid one artist $16,359 for three events for LaPierre’s wife. Upon information and belief, both LaPierre and his wife were aware of the cost of these makeup services.”

Para 344 onward, “Under Wild Skies.” Paid $18 million by NRA. “LaPierre also directed the president of Mercury Group and UWS to pay for various NRA board members and officers and their spouses—including the former Executive Director of NRA-ILA and his spouse, current board members, and the Executive Director of Advancement— to participate in big game hunts around the world. Upon information and belief, these trips were not authorized by resolution of the NRA Board or an authorized committee.” Head of UWS was paid millions “on the side.”

Para 355 onward. Consulting agreements with former employees. Milllions. Head of General Operations was fired, but paid $1.8 million. Not approved by president and a VP as required.

Former NRA Foundation director. Paid a fortune as a fundraising consultant through a shell company he owned. Not disclosed on tax forms, and he did not register as a fundraising consultant.

Former director of affinity and licensing. Retired in January but paid the full year’s salary of $630,000, then a consulting contract for $400-500,000 per year. Consulting contract required him to work “not to exceed 7.5 hours a month.” External auditors flagged.

Para 382 onward, related party transactions with board members.

Para 413 onward, excessive compensation to executives. NRA certified on its IRS tax report that compensation was set via compensation experts and surveys. This was untrue. The official compensation committee at one point hired an expert, but recommended salaries without receiving his report. More often, it had and asked for nothing, just did as it pleased, making the tax form false. The board routinely approved with little debate. The Committee did not consider all the free travel, leased jets, etc. that LaPierre was receiving. LaPierre’s “retirement contract” never considered by board. “the NRA was obligated to continue to pay LaPierre for years after he lost re- election or retired and at a higher rate than his compensation as Executive Vice President. LaPierre testified that he was aware of this feature of the contract: “I noticed that and kind of shook my head at it when I saw it,” LaPierre recalled, “I didn’t ask for this contract. It’s what was presented to me and I signed it and it never went into effect because I stayed on as EVP.”” In 2018 it was modified, to pay a total of over $10 million. This makes it look as if the board was shoveling more money at LaPierre than he wanted.

IRS reports mis-reported compensation year after year, leaving off millions.

Para 462 onward, retaliation against dissidents on the board. Brewer law firm was paid $19 million in 12 months, Audit Committee finds its contract did not comply with NRA policy. Frazer, who signed it, admits was error. “From March 2018 to December 2020, the NRA paid the Brewer firm nearly $75 million in legal fees.”

Dissident directors were “stonewalled, accused of disloyalty, stripped of committee assignments, and denied effective counsel necessary to properly discharge [their] responsibilities as board members.” Any board member who dissents from the looting is being purged.

Para 495 onward, “The NRA Board’s Failures Resulting in Violations of Law”

Audit Committee totally failed its obligations. Its chair, Charles Cotton, did not even read its charter. Failed to do things charter required, did not know was part of its duties. Failed to respond to whistleblowers, as law requires. Their arguments were concealed from outside auditor. Whistleblower felt threatened, Audit did nothing. It ignored related party transactions in violation of NY law. Then it began approving them retroactively, without looking into them. Some of the retroactive approvals spanned over ten years of contract that had never been revealed to Audit Committee.

“Examples of the related party transactions and conflicts of interest that were improperly approved by the Audit Committee include:

1.) On April 28, 2019, the Committee retroactively approved approximately $3,692,000 paid by the NRA to Unified Sportsmen of Florida over a nineteen-year period. Board Member No. 5 (meaning Marion Hammer) is the Executive Director of Unified Sportsmen of Florida. At the same meeting, the Committee also prospectively approved future payments by the NRA to Unified Sportsmen of Florida.

2.) On April 28, 2019, the Committee retroactively approved approximately $326,000 in grants from the NRA to the New Jersey Rifle and Pistol Clubs, Inc. over a fourteen- year period. The president of the New Jersey Rifle and Pistol Clubs, Inc. is a board member of the NRA. At the same meeting, the Committee also prospectively approved new transactions between the New Jersey Rifle and Pistol Clubs, Inc. and the NRA.

3.) On April 28, 2019, the Audit Committee retroactively approved transactions between SpiritWild Productions and the NRA amounting to approximately $120,000 over a two- year period. The President and Director of SpiritWild Productions is the wife of a board member of the NRA. On May 30, 2019, and again on January 9, 2020, the Audit Committee prospectively approved new transactions with SpiritWild Productions.”

More screw-ups. Outside auditor was told LaPierre is just a lobbyist who is not involved with NRA’s operations and finances. “the Vice Chair of the Audit Committee testified that he did not feel the need to ask RSM for external oversight of LaPierre’s expenses because he “personally [had] a great deal of trust in Wayne LaPierre” and he didn’t believe that LaPierre “expends money unnecessarily.”” Audit Committee indemnified directors and officers for legal fees, but it had no power to do so. Legal fees were “in connection with an investigation being conducted by the US Department of Justice.”

Para 553 onward, NRA has failed to institute an effective compliance program. This is an attack on leadership’s claims that it has. It doesn’t have a dedicated compliance officer. LaPierre tasked Powell with that, and then suspended Powell for his own noncompliance. Total efforts consisted of creating one presentation. Chair of Audit had no idea what was being done here. LaPierre failed in duties and so did Audit Committee. False regulatory filings year after year. Para. 568 onward details the false filings. Omitted payments to officers and directors. Claimed there were no related party transactions, reported as “independent directors” people who were not, failed to report vendors who gave things to LaPierre, Phillips, and Powell and others, failed to report payments to Crow Shooting, which was owned by a former president, failed to disclose all that was being paid to Ackerman and Mercury Group, said it had not become aware of diversions of its fund even though whistleblowers had made their report of this, failed to report LaPierre’s wife’s used of leased jets billed to NRA, failed to disclose a vender (given millions) as a fundraiser who wasn’t licensed as such. List goes on and on.

Para 570 onward, failure to comply with NY law. It imposes many duties on a board and fund managers. NRA failed to comply.

“It has permitted unrestricted net assets on its balance sheet to decrease from a surplus (unrestricted assets less liabilities) of $27,802,714 at year-end 2015, to a net deficit at year-end 2016 of $14 million, to a net deficit at year-end 2017 of $31,779,599, to a net deficit at year-end 2018 of $36,276,779.to a net deficit of $49,641,823 at year end 2019. The total reduction in unrestricted assets over the four -year period exceeds $77 million. The Board minutes of the NRA do not reflect any consideration of this precipitous decline, or consideration of the factors set forth in NYPMIFA, with respect to this use of institutional funds. The Attorney General, upon information and belief, alleges that this decline in unrestricted assets continues to the present time.” The board is simply blind to even the greatest of corporate crises.

NRA leadership and board has imprudently paid Brewer $54 million, broken agreements with its lenders, pledged capital assets to get loans to pay daily expenses, borrowed from its Foundation by pledging the same assets twice over, hired “faithless fiduciaries,” made “no show” consulting contracts with officers,

Para 580 onward, Continuing breaches by NRA since first complaint was filed. More attacks on LaPierre’s supposed reforms.

NRA’s outside auditor fired NRA as a client. Audit Committee hired a new firm with no expertise in big nonprofits.

Preparation of NRA’s 2019 IRS 990, the tax return for a nonprofit. Its outside auditor stopped signing it. NRA’s treasurer refused to sign. Treasurer had found false statements on it, including directors travelling first-class (which must be reported, but was not). He was refused evidence. “In a final effort to get comfort on the accuracy of the information contained in the Form 990, the then-Treasurer requested that those with knowledge of the contents of the Form 990—including several senior NRA executives and directors—certify as to the truth and accuracy of its contents. Several of the individuals to whom he made this request, including the NRA President and Vice Presidents, declined to provide the requested certification.”

LaPierre then fired him and had him immediately cut off from NRA computers, and falsely told the board he had resigned for health reasons.

2019 990 disclosed excess benefits transactions for leadership of millions. It omitted vast sums beyond this.

Para 605 and beyond, continuing violations of NRA policies. Millions to vendors. One was paid $28 million more than its contract required. Another had a 2019 contract signed by LaPierre but not the president and a VP. 2019 is, of course, long after the claimed reforms went into effect, showing they are meaningless.

Para 615 and beyond. NRA files for bankruptcy to escape the AG’s regulatory authority, and gets dismissed. SLC created and approved by board. Week before bankruptcy filing, in 2021, the board approved a new employment contract for LaPierre. Board misinformed. LaPierre filed without telling board or even his own staff. Wired $5 million to Brewer firm first.

Para 637 and onward. Remember, we predicted this would happen: “The NRA Admits it Filed for Bankruptcy to “Dump New York” and Evade the Regulatory Authority of the New York Attorney General.“

Quotes LaPierre press release and messages to members. Quotes bankruptcy judge, lack of good faith, “cringworthy” actions. Firing of treasurer.

What the AG is asking the court for. “this Court should dissolve the NRA pursuant to N-PCL § 1109(b)(1) and distribute its remaining and future assets to be applied to charitable uses consistent with the mission set forth in the NRA’s certificate of incorporation, pursuant to N-PCL §§ 1115(a) and 1008(a)(15).” And much more.

“The Attorney General seeks removal for cause of each officer, director, and trustee who violated the whistleblower policy required by N-PCL § 715-b and EPTL § 8-1.9.” Sounds like the Audit Committee, and others.

For the first time, a call for a receiver. Para 729 asks for an order to secure proper administration of NRA funds and to order an accounting by NRA officers and directors for them.

Not one of us thinks NRA can survive this. Even if the board reacts at its next meeting, it cannot possibly do enough. “Dump LaPierre” wouldn’t save things now, and the board is unable even to think of that. They’d have to dump the Audit and Officer Compensation Committees, replace them with competents who knew their duties, have the board awaken and act like a real board of directors. where they have real oversight instead of meeting for dinners and drinks and applauding the officers’ speeches and then going home. NRA would have to change from being run like a small gun club and switch to being run professionally like a $300 million corporation. It’d take an ENORMOUS change in the entire corporate culture, which not going to happen.
"If scientists and inventors who develop disease cures and useful technologies don't get lifetime royalties, I'd like to know what fucking rationale you have for some guy getting lifetime royalties for writing an episode of Full House." - Mike Wong

"The present air situation in the Pacific is entirely the result of fighting a fifth rate air power." - U.S. Navy Memo - 24 July 1944
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Re: NY state sues to dissolve NRA

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Mr Bean wrote: 2021-05-11 09:17pm Odd, Wayne's brilliant idea to tell the NRA board everything is fine and donations are up and the bankruptcy court the opposite didn't pay off. I wonder if it was when their spokesperson when on Fox News and said they were moving to Texas to avoid the New York Law suite.
Best part Bean-o?

Apparently Wayne filed bankruptcy without telling most members of the Board of Directors, the CFO, or the General Counsel. They all found out after it was filed.
"If scientists and inventors who develop disease cures and useful technologies don't get lifetime royalties, I'd like to know what fucking rationale you have for some guy getting lifetime royalties for writing an episode of Full House." - Mike Wong

"The present air situation in the Pacific is entirely the result of fighting a fifth rate air power." - U.S. Navy Memo - 24 July 1944
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Re: NY state sues to dissolve NRA

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It's going to go down in history as one somehow charismatic old white guy brought down a very successful advocacy group in order to fuel his personal lifestyle. Hopefully it gets marked down as a case study of not letting one executive take over the entire company with personal loyalists.

"A cult is a religion with no political power." -Tom Wolfe
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Re: NY state sues to dissolve NRA

Post by Solauren »

MKSheppard wrote: 2021-08-22 09:34am
Mr Bean wrote: 2021-05-11 09:17pm Odd, Wayne's brilliant idea to tell the NRA board everything is fine and donations are up and the bankruptcy court the opposite didn't pay off. I wonder if it was when their spokesperson when on Fox News and said they were moving to Texas to avoid the New York Law suite.
Best part Bean-o?

Apparently Wayne filed bankruptcy without telling most members of the Board of Directors, the CFO, or the General Counsel. They all found out after it was filed.
Canadian Bankruptcy law doesn't allow you to be head of an organization like this (Corporation, Charity, etc) after you declare Bankruptcy. Is that the case in the United States?

If so, by doing this, he's effectively removed himself from the NRA, and in a way that would shield him from economic fall out, while leaving them all holding the bag!
I've been asked why I still follow a few of the people I know on Facebook with 'interesting political habits and view points'.

It's so when they comment on or approve of something, I know what pages to block/what not to vote for.
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Re: NY state sues to dissolve NRA

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Back on 31 July, it became known that there's no more D&O (Directors & Officers) insurance for NRA board members by the end of August -- Lloyd's of London refused to extend the contract; so it's done.

NRA has apparently reacted by forming a $5M temp fund from other monies available to it to tide them over while they look for a new insurer.

Meanwhile, Ted Nugent has resigned from the Board, along with several others.

My take:

The Nuge knows he's at risk as a 26-year board member for failing his fiduciary duties; versus a "new" 3-year board member, so he GTFO while the getting was good.

My take II:

It remains to be seen just how far the NY AG will go.

If the NY AG is a shameless political creature, out to kneecap and destroy the NRA; The Nuge is safe, as she's more interested in crippling the NRA.

If the NY AG has some shreds of duty; and is about 50% in this case to actually fight corruption; the Nuge is toast (that whole "I was a board member for 26-years and saw...nothing?" thing).
"If scientists and inventors who develop disease cures and useful technologies don't get lifetime royalties, I'd like to know what fucking rationale you have for some guy getting lifetime royalties for writing an episode of Full House." - Mike Wong

"The present air situation in the Pacific is entirely the result of fighting a fifth rate air power." - U.S. Navy Memo - 24 July 1944
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Re: NY state sues to dissolve NRA

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What if she just goes all out, and decides to both kneecap the NRA and take out Nuge?
I've been asked why I still follow a few of the people I know on Facebook with 'interesting political habits and view points'.

It's so when they comment on or approve of something, I know what pages to block/what not to vote for.
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Re: NY state sues to dissolve NRA

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NRA has cancelled their annual meeting ostensibly due to COVID concerns:
Due to concern over the safety of our NRA family and community, we regret to inform you that we have decided to cancel the 2021 Annual Meeting & Exhibits. This cancellation applies to all events and meetings that were scheduled in Houston. We will provide future notification regarding a rescheduled date for the annual Meeting of Members.

We make this difficult decision after analyzing relevant data regarding COVID-19 in Harris County, Texas. We also consulted with medical professionals, local officials, major sponsors & exhibitors, and many NRA members before arriving at this decision. The NRA Annual Meeting welcomes tens of thousands of people, and involves many events, meetings, and social gatherings. Among the highlights of our annual meeting are acres of exhibit space featuring the latest and greatest firearms, the display of countless accessories, and the offering of adventures and group gatherings that many travel hundreds, and some even thousands, of miles to experience. We realize that it would prove difficult, if not impossible, to offer the full guest experience that our NRA members deserve.

The NRA’s top priority is ensuring the health and well-being of our members, staff, sponsors, and supporters. We are mindful that NRA Annual Meeting patrons will return home to family, friends and co-workers from all over the country, so any impacts from the virus could have broader implications. Those are among the reasons why we decided to cancel our 2021 event.

We would like to thank our members, attendees, exhibitors, and staff for their understanding and support. We are grateful for the many contributions of the George R. Brown Convention Center, state and local officials, community organizers, area hotels, and countless event venues across Houston. We receive enormous support from Houston and the State of Texas - and we hope to return to the Bayou City for a full annual meeting experience.

The NRA looks forward to a Celebration of Freedom in Louisville in May 2022. In the meantime, we will support many other NRA local events and smaller gatherings - in a manner that is protective of our members and celebrates our Second Amendment freedom.

We wish continued health and safety to our entire NRA family.
but even before this cancellation (on only 2 weeks notice), many major vendors were gone:

https://www.thedailybeast.com/gun-maker ... -big-party

Cancelled/Withdrawn Officially
Benelli USA
Browning
FN Herstal
Kimber Manufacturing
Savage Arms
Smith & Wesson
Springfield Armory
Sig Sauer
Sturm, Ruger & Company
5.11 Tactical (Tacticool clothing)

Unofficially Cancelled
Beretta
Heckler & Koch
Vista Outdoor (CCI, Federal & Speer ammunition brands)

Still going
O.F. Mossberg & Sons

Basically, this was due to WLP's issues with NRA, because two weeks ago; they held the Texas Trophy Hunter Extravaganza Show, and had no issues with COVID.

COVID gives everyone an easy out to quit the NRA Annual Meeting and avoid being seen as "attached" to WLP.
"If scientists and inventors who develop disease cures and useful technologies don't get lifetime royalties, I'd like to know what fucking rationale you have for some guy getting lifetime royalties for writing an episode of Full House." - Mike Wong

"The present air situation in the Pacific is entirely the result of fighting a fifth rate air power." - U.S. Navy Memo - 24 July 1944
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Re: NY state sues to dissolve NRA

Post by Solauren »

The Rats are fleeing - The NRA is now officially a sinking ship.
I've been asked why I still follow a few of the people I know on Facebook with 'interesting political habits and view points'.

It's so when they comment on or approve of something, I know what pages to block/what not to vote for.
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