LaPierre found guilty (or "liable" actually)

[Suck My Glock]

https://www.reuters.com/legal/jury-says ... 024-02-23/

James originally sought to dissolve the NRA, but the judge in 2022 said she had not shown sufficient public harm to justify a "corporate death penalty."

[smithers599]

But co-conspirator/enabler/Friend Of Wayne John Frazer is now going to run the show. Any bets he uses NRA money to reimburse his friend Wayne for the 4 mil fine?

Bastages.

[smithers599]

Ballots are out. Vote for the "reform" candidates: Phil Journey, Jeff Knox, Dennis Fusaro, Rocky Marshall, and Buz Mills. Vote for them ONLY; don't dilute your votes.

[SupportTheSecond]

Latitia James needs to be disbarred for her persecution based on political beliefs vs. actual facts.

[smithers599]

Latitia James needs to be disbarred for her persecution based on political beliefs vs. actual facts.

Letitia James is a piece of garbage; it's true. The persecution was based on political beliefs (just as with her case against Trump). But in this one case, the facts are on her side, unfortunately. WLP threw her a softball. The actual facts are WLP did embezzle, as did many of the board members. WLP should be in jail.

[Cbvanb]

Latitia James needs to be disbarred for her persecution based on political beliefs vs. actual facts.

Letitia James is a piece of garbage; it's true. The persecution was based on political beliefs (just as with her case against Trump). But in this one case, the facts are on her side, unfortunately. WLP threw her a softball. The actual facts are WLP did embezzle, as did many of the board members. WLP should be in jail.

Agreed. WLP spent years fleecing members to live the high life, and not coincidentally at the same time the NRA pretty much quit seriously fighting for us. James is human filth, but she did expose something we might never have learned otherwise.

[smithers599]

I also am eager to see if WLP has the nerve to demand his $17M "golden parachute," if the NRA has the nerve to approve it, and if WLP has the nerve to sue the NRA if they don't approve it.

[smithers599]

From: "Daniels, Stephanie" <SDaniels@nrahq.org>
Date: February 23, 2024 at 7:01:54 PM MST
To: "Daniels, Stephanie" <SDaniels@nrahq.org>
Subject: A Message from Charles Cotton Regarding New York Verdict
Dear Board of Directors,

A jury verdict was rendered in the NYAG’s lawsuit against the NRA and individual defendants: former EVP Wayne LaPierre; General Counsel and Secretary John Frazer; and former CFO Wilson Phillips.

The verdict confirms what the NRA has contended all along – that it was victimized by certain former vendors and “insiders” who abused the trust placed in them by the Association. And although the jury found inaccuracies in the NRA’s past government filings, Mr. Frazer (who signed many of the documents in question) was not deemed to have damaged the NRA, nor were the errors in question significant enough to merit his removal from the Association.

The NRA’s case focused on our compliance efforts, and the organization’s commitment to good governance following summer 2018 whistleblower complaints. The allegations by the NYAG that survived to the jury-verdict stage were starkly diminished relative to their complaint: as jury deliberations approached, the government was forced to drop half of its whistleblower allegations for lack of evidence, along with a number of conflict-of-interest claims.

As we know, the NRA Board led an investigation into spending allegations and determined that certain individuals participated in transactions that ran afoul of NRA policies and procedures. Trial testimony confirmed the NRA Board was unaware of the arrangements in question. The board moved quickly to implement a “course correction” and terminated several vendors who abused the Association. The NRA cancelled consulting arrangements with certain board members, adopted a new whistleblower policy in 2020, and recently hired a new compliance manager.

During a 24-day jury trial, the NRA established the NYAG cannot prove self-dealing or bad faith by the NRA Board of Directors. As importantly, the NRA established that it adopted new policies and accounting controls, displaced vendors and insiders who abused the Association, and accepted reparations for costs determined to be excess benefits. Most of these corrective measures – part of an internal investigation ignited by the NRA Board – were adopted before the NYAG filed her lawsuit.

The NRA’s commitment to good governance today was on full display during the trial proceedings.

Of particular importance, the six-person jury found that of 16 related-party transactions of which the NRA was accused, the NRA Audit Committee was found to have properly reviewed and ratified 14 of them. However, the jury rendered a verdict that found the NRA failed to properly administer the organization and its assets, and that it violated whistleblower protections.

With respect to other individual defendants, the jury found Mr. LaPierre and Mr. Phillips violated their statutory obligations to discharge the duties of their position in good faith and with care. The jury found the monetary harm suffered by the NRA for each individual was $5.4 million and $2 million, respectively. (Defendant Powell reached a settlement with the NYAG prior to the start of the jury proceedings.)

The jury decision paves the way for the second phase of the proceedings – a bench trial before Justice Joel M. Cohen where the judge is expected to rule on any final remedies against defendants.

In the final analysis, individual defendants could face financial awards payable to the NRA. No money damages will be awarded against the Association.

Although it was not a matter before the jury, the NRA effectively demonstrated that the NYAG’s lawsuit was motivated by political animus. As a candidate for NYAG in summer 2018, Letitia James called the NRA a “terrorist organization” and “criminal enterprise.” She vowed to pursue the NRA if elected, and quickly did so upon taking office in 2019.

Our fight is not over. Against the backdrop of the NYAG trial, the NRA is preparing for another case involving New York government officials. On March 18, 2024, the U.S. Supreme Court will hear arguments in the NRA’s First Amendment case against former financial regulator Maria T. Vullo.

I am extremely optimistic about that case and the next phase of the NYAG proceedings. Let’s not forget that when the NYAG began this pursuit, the goal was to shut us down forever. We have emerged through phase one with limited findings against the Association for long past events, and a demonstrated record of good governance.

We will keep fighting for our members – and defending the freedoms to which they are entitled. Thank you in advance for your support.

Charles

"... a demonstrated record of good governance."
Mr. Cotton, please make like a shepherd and get the flock out of here.

[Half Cocked]

Analysis of the civil trial of NY vs NRA by MrGunsNGear.

[mtptwo]

Still not giving money to the NRA until the current board gets axed.

[brandonsmash]

Do you have any faith in the NRA as a body going forward? I can't say that I do. There other firearms rights groups that not only do decent work, but don't have the entrenched corruption and cronyism that has plagued the NRA for decades.

Even if they replaced the current board I don't think the NRA as an organization is capable of rehabilitation.

[Half Cocked]

Do you have any faith in the NRA as a body going forward? I can't say that I do. There other firearms rights groups that not only do decent work, but don't have the entrenched corruption and cronyism that has plagued the NRA for decades.

Even if they replaced the current board I don't think the NRA as an organization is capable of rehabilitation.

Yep. I've given up on the NRA. They had their chance and blew it. I've moved on to other more worthwhile pro-gun advocacy groups. The NRA now has an almost insurmountably steep hill to climb to regain my trust and support.

[smithers599]

From Buz Mills:

February 26, 2024
TO: NRA Board of Directors
FR: Owen Buz Mills, Director
RE: NY vs NRA
I am glad to see Phase 1 of the NY vs NRA trial concluded.
I am not at all surprised to see the jury conclude that we (the NRA board of Directors) are guilty of “failure to properly safeguard its charitable assets and failure to protect whistleblowers”. By far the most serious charge.
It is reported that the court is looking at mid-summer before it can enjoin Phase 2, the remedy portion of the trial. The judge will impose fines, sanctions and rule on whether or not NRA has stepped up to the plate and purged all the shifty players and decided to pursue business in accordance with its charter.
The NYAG wants to see funds returned to the NRA and the court essentially assuming control of the Association.
The NRA report to the Board is claiming they won this trial (they have done that before too, reality is our legal team has yet to put any score on the board).
My head is spinning after studying the media, President Cotton and NY AG James’ spin reports of the out come of the trial.
The following brief summary of the decision is offered for your consideration by one other than an attorney. I have reduced these jury results to the lowest common denominator that is simply understood by all of us. I urge you to research for yourself the source documents to complete the picture and satisfy yourself that you are fully informed. This is your responsibility as a director.
All of us deserve a true NO SPIN, cold hard facts report on the trial. It is imperative that all of our directors understand what the jury really ruled.
Because they were judging us and our conduct.
To understand the entire proceedings, I compiled a spreadsheet directly from the final jury verdict forms, as charged to the jury by the judge.
For 6 laypersons with no stake or interest in the subject this journey of 7 weeks is complicated. Easily justifying the 72 pages of instruction and the17 page verdict sheet provided the jury by the court.
The verdicts were divided into 6 sections. The verdict sheet had 30 major questions and 38 sub questions to be answered either yes or no or how much. Of the 68 total questions the jury answered 62 of the questions unanimously, while there was a lone dissenter in 6 sub questions.
There is no mention of victimization by any vendors in the verdict. The only unscrupulous insiders mentioned in the verdict were the 2 former officers named in the initial charges. A dozen or so others, all board members, were identified in the trial for their long time support, enabling, promotion, and protection of the former EVP.
SECTION I: THE VERY FIRST QUESTION
The NRA failed to properly administer the organization and it assets. This means the Board failed in its duties. The Jury was unanimous on this issue.
SECTION II:
The 3 officers, the former EVP, the former CFO and the General Counsel/Secretary (GC) were deemed to have violated their statutory obligation to discharge the duties of their positions in good faith and with care. The former EVP and former CFO were found liable for $7,400,000. The GC was determined to not have caused any monetary harm.
SECTION III:
The former officers were found to have participated in related party transactions concerning post-employment contracts. The jury found the former CFO engaged in the unlawful related party transaction willfully and intentionally.
The jury identified 10 related party transactions, that included 5 BOD members, that had no BOD approval, 8 of these transaction were subsequently ratified by authorized committee.
SECTION IV:
The Jury found there is cause to remove the former EVP. The jury found there was no cause to remove the GC.
SECTION V:
The Jury found that the NRA by failing to adopt a whistleblower policy that complied with NY law between March 20, 2017 and Jan 22, 2020 was in violation of NY law.
The jury also found the NRA violated NY law by failing to evaluate whistleblower complaints and by permitting 8 named individuals to suffer intimidation, harassment, discrimination, or other retaliation to discourage reporting of improper conduct between March 20, 2017 and May 2, 2022.
SECTION VI:
The Jury found that the NRA filed NY and Federal IRS reporting documents which contained a statement or omission that was materially false. The Jury found that that the GC knew or should have known that the statement or omission was materially false.
END:

This was a complete loss for the NRA members. We completely let them down here. Our legal team has again failed to get a point on the board. We are now 0 for many. How much will it cost to get a win?
Looking ahead: I am wondering how some of our members that occupy sensitive positions will react to having been found to have “failed to properly administer the organization and its assets”.
Possibly the By Laws and Resolutions Committee should entertain acknowledgement of improper treatment of the named whistleblowers?
The management which has been in place since the Frankel debacle (c. 2003, sweeping bad behavior under the rug) is racing ahead “business as usual” totally missing an opportunity to show the court we can manage ourselves as adults.
Mid-summer, I am sure the court will be reviewing how we have reacted to the jury findings.
The NRA is not the first organization to suffer these ills. Several have purged bad leadership/management rectified their behavior and gone forward to honorably serve their members.
TRUST once spurned is tough to earn again. Fragile…………..

Owen Buz Mills
NRA Board of Directors
Gunsite Rance, Arizona
20240226

Notes;
Section III: 5 BOD members: Butz, Froman, North, Hammer, Keene
Section V: 8 Whistleblowers: North, Childress, Schneider, Knight, Maloney, Marshall, Journey, Spray.
Jury Verdict Sheet (17 pages) is available, just email me and I will forward.
Jury instructions from the Judge (72 pages) is also available.