The National Rifle Association and its longtime leaders were found liable Friday in a lawsuit centered on the organization’s lavish spending.
A New York jury has found that Wayne LaPierre, the NRA’s CEO for 30 years, siphoned millions of dollars of the organization’s funds into expensive perks, giving the organization a total of $4,351,231. ordered to repay the dollar amount.
The jury also found that the NRA violated New York state law by omitting or misrepresenting information on its tax returns and failing to adopt a whistleblower policy.
LaPierre, 74, sat in the front row of the courtroom with a stone-faced face as the verdict was read.
The jury found he was actually liable for $5.4 million, but determined he had already repaid just over $1 million.
The verdict was a victory for New York Attorney General Letitia James, a Democrat who had sued to investigate the NRA’s nonprofit status.
This is another blow to the powerful group, which has suffered from financial difficulties and declining membership in recent years.
Mr. LaPierre, a longtime face, announced his resignation on the eve of the trial.
NRA General Counsel John Fraser and former Treasurer Wilson Phillips were also named defendants in the lawsuit.
Mr. Phillips was ordered to pay $2 million in restitution to the NRA. Mr Fraser, on the other hand, was found to have breached his duties, but was not ordered to pay any money.
The fines paid by Mr. LaPierre and Mr. Phillips will be returned to the NRA, but the lawsuit paints the NRA as a defendant who lacked internal controls to prevent improper spending and as a victim of the same misconduct. There is.
James also seeks to bar the three from holding leadership positions at charities doing business in New York.
The justices will decide the issue in the next phase of the state Supreme Court case.
Joshua Powell, another former NRA executive turned whistleblower, testified in court last month and settled with the state by paying the NRA $100,000 and refraining from further involvement with the nonprofit.
In 2020, James sued the NRA and its executives based on its authority to investigate state-registered nonprofit organizations.
She initially sought to dissolve the entire organization, but Manhattan Judge Joel M. Cohen ruled in 2022 that the allegations did not warrant a “corporate death penalty.”
The trial, which began last month, examines the leadership, organizational culture and culture of the powerful lobbying group, which was founded in New York City more than 150 years ago to promote riflemanship and has grown into a political behemoth that influences the federal government. Focused on finances. Law and presidential elections.
Before his resignation, Mr. LaPierre had led the NRA’s day-to-day operations since 1991, serving as the face of the organization and becoming one of the most influential people in the country in shaping gun policy.
During the trial, state attorneys argued that he treated the NRA as a personal piggy bank, lavishing funds on African safaris and other questionable expenditures while avoiding financial disclosure requirements. .
His lawyers characterized the trial as a political witch hunt by James.
State attorneys say LaPierre billed the NRA more than $11 million in private jet fees and spent more than $500,000 on eight trips to the Bahamas over three years.
He also approved a $135 million NRA deal with a vendor that gave its owner free travel to the Bahamas, Greece, Dubai and India and access to a 108-foot (33-meter) yacht. .
Ms. LaPierre claimed that she did not know that travel vouchers, hotel stays, meals, access to a yacht and other luxury perks counted as gifts, and that the private jet flight was necessary for her safety.
However, he admitted that he improperly spent money on private flights for his family and accepted vacation time from a vendor who did business with the NRA without disclosing it.
Among those testifying at the trial was Oliver North, former president of the NRA and former National Security Council military adviser best known for his central role in the Iran-Contra scandal of the 1980s. There was also
North, who resigned from the NRA in 2019, said he was forced to step down after raising allegations of financial misconduct.
After reporting a $36 million deficit in 2018, largely due to spending errors, the NRA cut long-standing programs that were core to its mission, including training and education, recreational shooting, and law enforcement efforts.
It filed for bankruptcy in 2021 and sought to incorporate in Texas rather than New York, but a judge rejected the move as an attempt to evade James’ lawsuit.
Despite its recent woes, the NRA remains a political force. The association said last year’s annual convention brought together Republican presidential candidates, and former President Donald Trump spoke at an NRA event earlier this month (his eighth speech at the association).
Associated Press writer Philip Marcello contributed to this report.
