NRA, Ex-Leader Found Liable for Corruption, Must Repay Millions

A New York jury has found the National Rifle Association (NRA) and its former leader, Wayne LaPierre, liable for a corruption scheme that misused millions of dollars for personal expenditures. The verdict, reached on Wednesday, concluded that the NRA and LaPierre diverted funds for lavish expenses, leading to a ruling that they are responsible for misusing funds.

The jury’s decision determined that LaPierre cost the NRA $5.4 million. He has been ordered to repay $4.4 million to the organization, while NRA executive Wilson “Woody” Phillips must repay $2 million. LaPierre had already repaid the NRA approximately $1 million.

The case, brought by New York’s Democratic Attorney General Letitia James, alleged that LaPierre and NRA executives orchestrated a 26-year scheme from 1992 to 2018 to evade IRS reporting requirements by concealing personal expenses, which resulted in significant waste of charitable resources.

According to James, LaPierre, who led the NRA for over three decades, abused his position to receive millions of dollars in personal benefits. These benefits included vacations to the Bahamas, Botswana, and Mozambique, as well as the use of private jets and a private yacht. LaPierre defended his actions, stating that his trips were “all business” and helped further the NRA’s mission. He also claimed to have repaid the NRA with interest for money he owed the organization.

The Attorney General also alleged that LaPierre hired executives with a “lack of skills or experience” to facilitate unlawful spending. One executive, chief of staff Joshua Powell, allegedly had his salary tripled despite facing complaints of illegal conduct and inappropriate spending.

Initially seeking to oust LaPierre from his position, James’ request became moot when LaPierre resigned on Jan. 31, citing health reasons. Despite his resignation, LaPierre expressed continued support for the NRA and its mission to defend Second Amendment rights.

The NRA has long been known as a powerful lobbying group in the U.S., advocating for pro-gun rights candidates and opposing gun control initiatives. However, the organization has faced criticism, particularly after mass shootings, including the 2012 Sandy Hook Elementary School shooting in Newtown, Connecticut. The NRA’s legal troubles in New York began in 2020 when James sued the organization, accusing it of diverting millions of dollars, including membership revenue, for luxury expenditures. While James initially sought to dissolve the organization, a New York judge blocked that request in 2022, allowing the rest of the suit to proceed.

In addition to its legal challenges, the NRA has experienced financial difficulties, losing roughly 1 million members since 2018. Its revenue has also declined, hitting a 10-year low of $211.3 million in 2022, down from $353 million in 2018. The NRA filed for bankruptcy in 2021, aiming to restructure the organization and relocate from New York to Texas, citing a “toxic political environment” in New York. However, the bankruptcy case was dismissed four months later after a federal judge ruled that the NRA did not file in good faith.

In conclusion, the NRA and its former leader, Wayne LaPierre, have been found liable for a corruption scheme that misused millions of dollars for personal expenses. The verdict represents a significant legal and financial setback for the organization, which has faced criticism and legal challenges in recent years.