July 29, 2024

NEW YORK - New York Attorney General Letitia James today secured a 10-year ban on former Executive Vice President Wayne LaPierre from the National Rifle Association (NRA), and a court direction that the Office of the Attorney General (OAG) and the NRA propose reforms to be enacted at the NRA following years of mismanagement. Potential reforms that New York State Supreme Court Judge Joel Cohen outlined as priorities include retaining a compliance consultant to work with NRA staff to ensure needed changes are enacted, as well as changing the internal Audit Committee, reducing the size of the Board, and easing access for candidates to stand for Board positions.

Today's court decision follows a jury verdict in February that found that the NRA broke the law, retaliated against whistleblowers, and lied on its annual regulatory filings. The jury verdict also concluded that Wayne LaPierre caused the NRA $5.4 million in damages and ordered him to pay $4.3 million.

"The NRA and its senior leaders broke the law and funneled millions of dollars in cash and lavish perks to themselves, their families, and NRA insiders," said Attorney General James. "The damages portion of the case we presented, as well as the earlier trial before the jury, demonstrated that the NRA had a stunning lack of accountability and its leaders engaged in illegality and self-dealing. As a result of this case, Wayne LaPierre will be banned from the NRA for 10 years for spearheading this fraud, and the court called for additional proposed reforms to the NRA. After years of corruption, the NRA and its senior leaders are finally being held accountable."

As a result of this case brought by Attorney General James:

• A jury found that the NRA and members of its senior leadership violated the law,
• Wayne LaPierre was found to have caused the NRA $5.4 million in damages and must pay $4.3 million, and is banned from serving in a fiduciary the organization for 10 years,
• Former Chief Financial Officer (CFO) and Treasurer Wilson "Woody" Phillips is required to pay $2 million in damages and accepted a 10-year ban from New York's not-for-profit industry.

In February, Attorney General James won the first stage of the trial when a jury found the NRA, LaPierre, former General Counsel and current Corporate Secretary John Frazer, and Phillips violated state laws. The jury found that the NRA failed to properly administer charitable funds and protect whistleblowers, and that LaPierre and Phillips caused the organization $7.4 million in monetary harm. Ahead of the second stage of the trial, the Office of the Attorney General (OAG) reached a settlement with Phillips that included a 10-year ban from serving as a fiduciary of a not-for-profit in New York.

Attorney General James filed a lawsuit against the NRA and the other current and former senior officers in August 2020. In January 2021, the NRA filed for bankruptcy in an attempt to avoid accountability by trying to reorganize in Texas. In May 2021, a federal bankruptcy court in Texas rejected the NRA's bankruptcy petition, stating, "that the NRA did not file the bankruptcy petition in good faith." In September 2022, Judge Joel Cohen rejected another attempt by the NRA to challenge OAG's claims and affirmed that Attorney General James can seek an independent monitor to ensure the proper administration of the NRA's charitable assets. In December 2023, the New York State Supreme Court, Appellate Division, First Department affirmed that decision. In January 2024, a final effort to delay the trial was rejected by the Appellate Division, First Department.

On the eve of the first stage of the trial, Wayne LaPierre abruptly announced his retirement as Executive Vice President and CEO of the NRA, a role he held for more than 30 years. In addition, OAG reached a $100,000 settlement with the NRA's former Executive Director of Operations and Chief of Staff Joshua Powell before the trial's beginning. At the conclusion of the six-week trial, the jury found all the defendants liable for violating New York not-for-profit laws and determined the damages due to the NRA from LaPierre are $4.35 million and from Phillips are $2 million, which is not affected by his settlement with OAG.

The OAG's litigation and trial team was led by Assistant Attorney General and Special Counsel Monica Connell and Chief of the Enforcement Section Emily Stern, with a team of attorneys and legal assistants, including Bureau Chief James Sheehan, Assistant Attorneys General Jonathan Conley, Erin Kandel, Jonathan Lester, Alexander Mendelson, Steve Shiffman, Daniel Sugarman, Stephen Thompson, and William Wang, and legal assistant Nyna Sargent - all of the Charities Bureau. Additional assistance was provided by Sophia Friedman, Kenny Ip, Luz Ceballos-Lopez, Amanda Oh, Imani Saddler, and Jacqueline Sanchez. The Charities Bureau is part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.