NY Attorney Dissolve the NRA

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Re: NY Attorney Dissolve the NRA

#181

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https://thereload.com/exclusive-nra-rev ... n-in-2021/

GOING BROKE? DON’T SEE HOW MUCH LONGER THIS CAN GO ON, THIS ARTICLE,WAS RELEASED IN FEB. THIS YEAR, WELL HAS TO BE GOING DRY SOON GIVEN THE MONEY BEING SPENT ON LEGAL FEES


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Re: NY Attorney Dissolve the NRA

#182

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Wayne’s golden parachute
A filing in the New York lawsuit shows how it began in December 2013 and steadily grew more lucrative until the last document in April 2018. This is not just a retirement golden parachute, this is one trimmed with diamonds.

2013: $1 to $1.1 million per year for five years, upon retirement. Total of $5.4 million. Good for a part-time retirement job.

2018: $1.3 to $1.5 million for seven years, total of $10.3 million of members' money, with note that "safe lodging" (his mansion?) and "secure transportation" ( the private leased jets) are extras.

Only the last is also signed by two officers from the board, as was required for all contracts obligating NRA for more than $100,000.

From the 2013 contract, "It can be said that you are exactly the kind of intelligent and enthusiastic individual who will contribute significantly to the NRA over the next five years." That the president of NRA felt that, when handing LaPierre millions, he had to kiss his posterior in addition, says a lot.

Research: yes, the down payment for LaPierre's mansion (to be purchased by NRA) was made in April 2018, about ten days before his 2018 contract was signed. The "safe lodging" he would receive in addition to his pay must refer to that. Add on a free $6 million mansion (since the contract says that and the private jets are not included in his pay, a tax-free mansion and private jets). A sweet retirement package, all funded by NRA's members!

Mystery: the December 2013 contract isn't written as if LaPierre's retirement is indefinite, it doesn't say "for five years after you retire." Instead, it says the golden parachute will begin in 2014. Was LaPierre set to retire in January 2014, and then changed his mind?

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Re: NY Attorney Dissolve the NRA

#183

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We've blogged before of the remarkable, almost 100%, losing record of the Brewer firm in representing NRA. Here's one list we made of the losses. Here's an addition to it. Now we can add one more to the list.
When he was forced out, ILA head Chris Cox signed a contract with NRA. Some conflict must have come up, because he and NRA entered arbitration over its terms. It was discovered in the bankruptcy suit that NRA had already paid $8 million in legal fees to arbitrate a $2 million dispute.
In arbitration, the Brewer firm saw an opportunity to generate even more cash. It attacked the arbitrator, saying that he'd sent a racist email and one of his law partners (his firm has around a thousand partners) was a golfing buddy with Cox's attorney. It sued the arbitrator's employer and Cox's attorney's law firm. When NRA lost that suit, the Brewer firm appealed. Now, it lost the appeal, too. Scroll to the end of the list. Affirmed by MOJ" means by memorandum of judgment. It was so obviously a loser that the appeals court didn't think it was worth writing an opinion, just filed a memo saying the trial court was right to dismiss the suit.
A few years ago, NRA was wasting about 12% of its budget on a PR firm that produced almost no real PR. The real reason was that the head of the firm was "Wayne's brain," dictating LaPierre's every decision. Now it's wasting $30-40 million a year, about 12% of its budget, on the Brewer firm, which produces a long list of legal defeats. The real reason is that Bill Brewer has become "Wayne's brain." The board that for years elected Angus McQueen de facto head of NRA is now electing Bill Brewer to the same post.
What do we know about the person the board is making NRA's de fact head? One gun lawyer has written:
"Mr. Brewer has made about $200,000 in political donations, almost entirely to Democrats, and to Democrat party organizations. Including last year to Beto O’Rourke in his race against stalwart Second Amendment supporter Ted Cruz (my Senator). And maximum donations (over $10k) to Hillary in 2008 and before, and even to Al Franken. When he occasionally (rarely) donates to Republicans its often to the ones popular with Democrats, like Californian Tom Campbell. Mr. Brewer’s wife’s donation lacks the occasional RINO donation and includes max Obama donations. Brewer’s top partner is also a loyal democrat donor, and none of the other partners are active political donors.
And that’s all fine, legal, ethical, and no cause for me to complain – at least about that law firm and its lawyers.
But I’d like to know the decision process that leads to NRA to put tens of millions of dollars into the pockets of donors to the very campaigns the NRA magazine is warning readers about (and soliciting donations to fight!) While I can’t question the capabilities of the firm they hired presumably due to a connection with the PR firm, I can confidently suggest that there are hundreds of law firms in the nation that would have been capable of handling the case, and even if they weren’t all ardent Second Amendment supporters like yours truly, at least they wouldn’t be giving aid and comfort to the enemies of our most precious liberties."
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Re: NY Attorney Dissolve the NRA

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Nominating Committee rejected not only Frank Tait, Rocky Marshall and Judge Journey, but also Graham Hill, an intelligent director who'd been on the board for about ten years. Hill is a first-rate attorney with knowledge of government and political issues. He's served as chairman of Legislative Policy Committee, and vice-chair of Legal Affairs, so he was an important part of the board.

He's also honest and dedicated to the gun rights cause -- which may have been his problem with the Nominating Committee.

We can't help but wonder if NRA's leadership isn't out to eliminate the attorneys from the board? Maybe they don't want people with legal knowledge serving, they might ask the wrong type of questions, like why are we spending fortunes on law firms that lose time after time after time? The leadership is unhappy with its board of directors, and wants to get a new one? The board doesn't seem to object.

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Re: NY Attorney Dissolve the NRA

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Re: NY Attorney Dissolve the NRA

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Site logo image NRA in Danger
Under Wild Skies Wins Against NRA


nraindanger
Sep 21
Under Wild Skies is a corporation and NRA vendor, whose function was to send NRA officials (LaPierre's own hunt was a disaster) on free safaris, then bill the costs to NRA. UWS wasn't owned by Ackerman McQueen, it was a separate corporation, but all or most of its board were Ackerman/Mercury Group staffers, whom we assume are also the shareholders.

UWS had a multi-year contract with NRA (maybe five years) and when NRA cut its ties with Ackerman, it cut them with UWS, too. UWS sued in Fairfax County Circuit Court for breach of contract, and NRA counterclaimed for a bunch of things.

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

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

Add one more to their long string of losses for NRA.
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Re: NY Attorney Dissolve the NRA

#187

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Re: NY Attorney Dissolve the NRA

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Site logo image NRA in Danger
Millie Hallow Gone?


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Oct 2
Rumors from inside are that Millie Hallow, LaPierre's "right hand woman," and officially managing director of executive operations, has been fired or retired, certainly with a fistful of hush money.

She had been convicted of embezzlement from a nonprofit before she was hired by LaPierre, and after hiring was found she'd taken at least $40,000 from NRA. She wasn't fired, just made to pay it back. She probably had enough dirt on everyone in leadership that they couldn't fire her.

The rumors say that Tyler Schrop, head of Advancement (that is, soliciting big donors), and who was involved in a lot of luxury spending, departed at the same time.
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Re: NY Attorney Dissolve the NRA

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Site logo image NRA in Danger
LaPierre Letter To Board vs. Millie Hallow Deposition


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Oct 2
At the time the scandals were revealed in 2019, Wayne LaPierre sent a letter to the NRA board. In it, he said that Ollie North had made a phone call to Millie Howell, and it spelled out the phone call. North said he called "to relay the contents of a letter drafted by AM," Ackerman McQueen. North said he'd been told by director Dan Boren that "unless I resigned as the Executive Vice President of the Association, Ackerman would transmit this allegedly damaging letter to the entire NRA board.... (following bolded in original letter) But then Col. North explained that the letter would not be sent -- if I were to resign as Executive Vice President. And, if I supported Col. North's continued tenure as president, he stated he could "negotiate" an "excellent retirement for me. After Col. North concluded his telephone call with me, others informed me that I needed to withdraw the NRA lawsuit against AM or be smeared." It goes on to say that North had financial ties to AM, and that North's phone call was " a threat meant to intimidate and divide us."

We found Millie Hallows's deposition. On p. 165 she starts to discuss what happened that day. Boren, not North, called her, while she was in an officers' meeting. Boren said there would be "bad allegations" coming out unless LaPierre resigned (p. 167). She told LaPierre of the AM accusations and he said "that bastard Angus McQueen!" and left the room. She asked VP Childress (who like everyone in the room had heard them) if LaPierre should resign, and he indicated yes, she asked Col. North the same and he only said "not today." (p. 169-170).

Later, around lunchtime, while Hallow was with LaPierre, she received a call from Col. North. (p. 180-181). He said that Boren had read the AM letter to him; she asked if North wanted a copy, he said no, he didn't want anything with the AM letterhead on it. He listed the accusations. He said he was president and could help Wayne, get x months for Wayne (to retire). (p. 184-186). "Q. Did Oliver North ever tell you that he wanted Wayne LaPierre to resign? A. Never." (p. 197). She did not have the impression North had talked with anyone at AM. (p. 197-198).

She later was given a statement drafted by Josh Powell, telling Col. North that he had delivered messages "on behalf of yourself and Ackerman McQueen," (a fabrication, but one that could be shown to the board) and that the Nominating Committee would not re-nominate him. (p. 207-208).

According to Hallow's testimony, the letter LaPierre sent to the board is false. North didn't call to relay a letter from Ackerman, he refused even to see a copy of their letter, the only statement to that effect was created by Josh Powell, LaPierre's chief of staff. North didn't ask LaPierre to support North's own candidacy in exchange, and there was no request to withdraw the suit against Ackerman. The only truthful statement in the LaPierre letter to the board is that North said if LaPierre resigned, North would ensure he had a good retirement package -- something that would have spared NRA a lot of pain and danger.

BTW, Hallow also admitted to diverting NRA money for her son's wedding (p. 140) (reportedly tens of thousands were involved) and felt that LaPierre approved it (p. 148), discussed going with LaPierre on NRA-financed cruise ships (p. 90-92), and admitted using rented car (and driver) services, with LaPierre approval (p. 149-151).
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Re: NY Attorney Dissolve the NRA

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Chris Cox Testimony


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Oct 4
Cox was head of NRA-ILA for 17 years, before being purged in 2019, after the scandals broke. He had a good reputation and none of the scandals related to his shop; ILA was a clean operation.

His deposition has a number of revelations:

He thought very little of Josh Powell, LaPierre's Chief of Staff (p. 39-40).

He had little use for attorney Bill Brewer (p. 60-61).

Brewer falsely accused Cox of something (not described) (p. 76).

He details what happened on the important day before the 2019 annual meeting. (p. 156 and on). Director Dan Boren told Cox that Ackerman McQueen was going to release information very damaging to LaPierre. Cox told Boren to call Millie Hallow, LaPierre's "right hand woman" and inform her. This was the best way to contact LaPierre at a meeting.

Cox was in the hotel room officers' meeting later. He asked LaPierre if the accusations were true or not. (p. 166-167). He never suggested LaPierre resign, and never asked him to drop the lawsuit against Ackerman, which Cox thought was a good lawsuit. (p. 173-181). The attorney reads LaPierre's testimony claiming Cox did both, and Cox says that is not true. "Wayne not -- not remembering the conversation that took place accurately is the nicest way I could describe that." He describes LaPierre's claim that he was part of a conspiracy, indeed a criminal conspiracy, against LaPierre as "It's offensive. It's hurtful. But it's absolutely not true."

Angus McQueen had a "profound influence" over LaPierre. (p. 245). He typed a reminder note to himself, something to say to LaPierre, "You and I don't run the organization; it's you and Angus and Tony, and that's okay." (p. 249). Also in the notes, NRA's problems, including "a PR firm in Texas and Oklahoma that's more interesting in marketing to raise money than advertising to grow the brand." Cox obviously was not a fan of Ackerman McQueen.

Conclusion: Cox's testimony is that the entire story told the board was fabricated from the start. There was no conspiracy, no attempt at coup. Ackerman was out to blackmail, yes, but there was no North-Boren-Cox-Ackerman plot. North, Boren, and Cox were people who were alerted to the threat the scandals posed to NRA, and were trying to find solutions.
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Re: NY Attorney Dissolve the NRA

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Chickens are all coming out to roost
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Re: NY Attorney Dissolve the NRA

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Site logo image NRA in Danger
Steve Hart Testimony


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Oct 5
Hart was "attorney to the NRA board" for 11 years, until he was suspended by LaPierre (not by the board, his client) and he resigned. Here is his deposition testimony. (Note that large portions are blanked out). High points:

There were proposals to move the NRA legally to Texas, and to clean things up first so the NY Attorney General couldn't block it. (p. 134-154). NRA created a Lexington and Concord company as part of this. (p. 55-56).

LaPierre controls the Nominating Committee (p. 61) so he controls the board which in turn elects him.

After Oliver North created a "crisis committee" to react to all the scandals that were being revealed, attorney Bill Brewer opposed the creation of the committee. (p. 106-107).

Brewer stopped talking to Hart when Hart raised questions about Brewer's legal bills to NRA. (p. 110-111).

Although LaPierre claimed that he didn't know North was employed by Ackerman McQueen, hinting that North was AM's secret tool. Actually, the contract was negotiated in a long meeting where LaPierre and Millie Hallow were present. (p. 126-134). LaPierre had no objection to the employment contract. (p. 142).

He knew of the bad blood between Bill Brewer and Angus McQueen. "you know, Angus had an ability to talk you to death. But you only had to say Bill Brewer and he'd start stuttering and leave the room." (p. 215).

On Brewer (remember this is the board's attorney speaking), he sent an email: "Professionally, what is happening under Brewer's mind control games will destroy the NRA." Hart adds, "Hindsight will show that instead of resolving it quietly, we created a road map for the New York AG." (p. 254-255).

He's asked who Danny Hakim is, and answers "He is one of Brewer's best contacts in the media world." "Brewer works with him on all different sorts of stories, you know. He is a source; Brewer is a source for Hakim regularly and he feels like he can get Hakim to write positive stories from time to time." (p. 277).

Brewer's law firm has a PR division, and the firm took over NRA's PR, "seizing control of the entire messaging under the theory that, you know, litigation strategy was trumping everything and we had to be careful what we said about the second amendment generally." (p. 284).

The letters signed by Oliver North and Richard Childress, demanding an audit of the Brewer billings, "came out of a large meeting of board members." (p. 289).

Hart concluded early on that Brewer's lawsuit against Ackerman was dangerous. "You know it is not going to go well. And it is going to bring information to light that is going to lead to a New York AG investigation with 100 percent certainty. So, I was pretty unhappy." He expressed that to some directors, and figured he'd probably be terminated for it. (p. 300).

He received a letter from LaPierre saying he was suspended as the board's attorney. Asked if he was expected that, "Oh man, somewhat, yeah. Because I had been opposing Bill Brewer. I mean Bill was taking me out."

"Q. So, it is your view that Bill Brewer orchestrated your removal?
A. Yes.
Q. Because you questioned his legal fees?
A. Yeah." (p. 314-315).

Josh Powell told him that Brewer's hold on LaPierre was that Brewer had told LaPierre that he was "going to keep Wayne out of jail." (p. 343).

Claims that he was involved in some sort of conspiracy: "There was a coordinated effort to try to deal with Bill Brewer, this has been reconstructed as a conspiracy against Wayne." (p. 395). Rumors were spread that he was leaking things to the press: "It is completely false." (p. 401). He has an email from a reporter apologizing for showing up at his house -- he made her leave. (p. 402-403).
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Re: NY Attorney Dissolve the NRA

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Site logo image NRA in Danger
LaPierre Mansion: More Proof


nraindanger
Oct 8
We've covered this before (see links below). Short summary: in 2018, a plan was hatched between Ackerman McQueen and the LaPierres, to use NRA money to buy a $6 million Dallas mansion for the LaPierres. It would probably be a retirement home, since it was about a thousand miles from his office at NRA headquarters. It'd be a nice, 10,000 square foot mansion; here's some pics.

The home, on the edge of a country club golf course, would be owned by a newly-created company, "WBB Investments, LLC." (An LLC is a simplified corporation). That was a Delaware LLC, Delaware being a state where you can create an LLC without any of the creators' names being on file.

Why create an LLC to own just one house? So it could have "Investments" in its name, be carried on the NRA books hidden as one more investment. The board and members would never know.

We've done more investigation, and the story is a more complex than that. This affidavit, from Ackerman McQueen's treasurer, says that WBB Investments was owned 99% by NRA and 1% by "DJ Investments, LLC," which would have managed the property (and since it was a 10,000 square foot house management would have been profitable). DJ Investments turns out to be owned by the Angus McQueen family trust, and his son Revan McQueen.

In this blog post, we suggested that the deal might have violated the laws against use of the mails and wires in a fraudulent scheme; the house might have been carried on the NRA books and tax reports as an investment, $6 million invested in "WBB Investments," which would have hidden its existence from the NRA board, the IRS, and NRA members who looked at the corporation's Form 990. We suggested the same here. Now we've found more evidence, strong evidence, that this was the plan.

The deal was started with a $70,000 NRA check for "earnest money" on the purchase, sent to WBB Investments. As a result of the bankruptcy filing, we can see the invoice that led to the check being written, and it says the money is for "investment in security assets." Yes, it was to be hidden as an investment. $6 million in members' money, a non-profit's money, diverted to personal luxury and no one the wiser.
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Re: NY Attorney Dissolve the NRA

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Site logo image NRA in Danger
NRA HQ To Move To Texas?


nraindanger
Oct 17
This sounded so insane we waited for confirmations of it, and now we have them.

NRA's leadership is planning for a physical relocation of headquarters to Texas. This would do nothing for them with regard to their fight with the NY Attorney General. That's determined by the fact that NRA is a New York corporation, an artificial being owing its existence to New York law. A physical move does not change this (if it did, NRA's being headquartered in Virginia for the past 30 years would have made a difference). NRA tried to use its disastrous bankruptcy to make it legally a Texas corporation, and that failed completely.

The effects of such a physical relocation would be destructive, enough to finish off the organization. Half or a majority of staff would quit rather than sell their houses, uproot their kids, and move 800 miles. All but LaPierre and a few others at the top are on "at will" employment, and can be fired any day without any reason - who would spend thousands to move when they could be fired the next day? ILA's Federal Affairs lobbyists would be left on the Hill, and isolated from the rest of the organization. NRA, which is now teetering on the edge of going bankrupt for real, would have to pay for its move, sell its headquarters (the office market in Fairfax isn't good), and buy a new HQ. This would just be insane.

If the New York judge catches wind of it, looking as it does like another stupid and futile attempt to escape his jurisdiction, and squandering of the members' money, he might just appoint a conservator to watch over the corporation's assets. The board obviously can't do that job.

We thought this an insane move. But then, so was filing for bankruptcy while (falsely) telling the court NRA is in great financial condition, hiring a $1,400 an hour attorney whose track record is continuous losses, using a PR firm to launder your money and then suing them, firing Chris Cox, hiring an attorney with 14 months' experience to be your General Counsel, making an embezzler (Woody Phillips) your treasurer, and responding to the Attorney General's investigation by purging everyone who'd called for honesty. (Rant endeth here.)
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Re: NY Attorney Dissolve the NRA

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Site logo image NRA in Danger
NRA’s Finances And Legal Bills


nraindanger
Oct 20
Read them and weep. 2022 is a projection, based on its first eight months.


Legal expenses have absolutely exploded, even as revenues go thru the floor, as members decide not to renew or contribute. In 2017, legal expenses were 2% of NRA's budget, in 2021 they were 17%, and in 2022 they are likely to be nearly 24%. One dollar in four of a member's dues or contributions is going to attorneys. In the meantime, NRA staff have fallen from over 800 to under 500, and it looks like NRA will run a $40 deficit in 2022, borrowing to keep itself alive, and to pay its legal bills.

There's tens of millions for the lawyers, but not enough to replace the leaking headquarters roof, as we reported a year ago. This reference says they hired a company to repair it, "until the time the company [NRA] is prepared to replace the roof."

The majority of the legal fees, a quarter of NRA's budget, are going to Bill Brewer, of whom a newspaper wrote, "Brewer, 67, does not have the typical profile of a lawyer for the NRA, one of President Donald Trump’s staunchest allies. Campaign filings show that he has donated to numerous Democrats, including Barack Obama, Hillary Clinton and Beto O’Rourke."

Why hire him? Multiple persons have sworn that Wayne LaPierre told them Brewer could "keep me out of jail" (see para. 16)
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