NRA Goes On Trial Today In New York—Here’s What To Know

Topline The National Rifle Association (NRA) will go to court Monday against New York Attorney General Letitia James in a trial accusing the gun rights group and its leaders of widespread civil corruption, which could result in serious consequences against the group’s present and former leaders—though it won’t lead to the dissolution of the NRA, as James initially hoped.

NRA Executive Vice President and CEO Wayne LaPierre speaks to guests at the 2023 NRA ILA Leadership ... [+] Forum on April 13, 2023 in Indianapolis, Indiana. Key Facts James’ lawsuit, initially filed in 2020, accuses the NRA’s leadership of widespread corruption, alleging longtime leader Wayne LaPierre, with help from other NRA leadership, used NRA resources and funds on personal expenses.

The case names the NRA, LaPierre, and other executives as defendants, accusing them of breaching their fiduciary duties, failing to administer the NRA’s charitable assets property, wrongful contract transactions, violating whistleblower protections and committing false filings. The suit alleges LaPierre and associates spearheaded a scheme from 1992 to 2018 in which the group evaded IRS reporting requirements and concealed significant personal entertainment and travel expenses, “wasting significant charitable resources and exposing the NRA to millions of dollars of potential liability” from the IRS.

LaPierre—who resigned last week—“abused his position” to obtain millions in personal benefits using NRA funds, the suit alleges, including private flights; family vacations to the Bahamas, including use of a private yacht; and complimentary African safaris. James also alleges LaPierre hired and retained executives “despite their lack of skills or experience,” who facilitated his alleged unlawful spending, claiming former NRA chief of staff Joshua Powell’s salary was tripled despite “complaints of abusive behavior, and evidence of illegal conduct and inappropriate spending,” and that NRA general counsel John Frazer was “unprepared” to handle the organization’s legal affairs.

The lawsuit sought to force LaPierre out of his position as head of the NRA, but LaPierre suddenly resigned Friday before the trial began, saying he “will never stop supporting the NRA and its fight to defend Second Amendment freedom;” the company’s attorneys cited LaPierre’s chronic lyme disease in filings to justify his departure, opposing James’ claims it was because of the trial.

Chief Critic The NRA has strongly opposed the state’s case against it. In a statement to CNN Saturday, after LaPierre’s resignation, NRA attorney William A. Brewer III said it was “a telling sign that the NYAG’s case relies so heavily on disgruntled former employees, terminated vendors, and other castoffs from the NRA’s past who are no longer affiliated with the Association,” while “the NRA lives in the present, and its case relies on something much more powerful: facts, evidence and a demonstrated commitment to good governance.” Surprising Fact The state settled its case with Powell on Friday for $100,000—which involved the ex executive admitting his wrongdoing—so the case against him won’t move forward to trial.

What To Watch For The trial is expected to last approximately six weeks, the court said ahead of the trial, and jury selection already took place last week. James is asking the court to appoint an independent monitor to oversee the NRA’s administration of assets and force the court to impose reforms on the organization.

The suit also asks the court to remove Frazer from his role—now that LaPierre is already removed—prohibit the defendants from serving on any nonprofit or charity board in New York, impose financial penalties on the defendants and block the NRA from “soliciting or collecting funds on behalf of any charitable organization” in New York.

The jury will determine any monetary damages and whether the NRA defendants are liable for the allegations against them, but separate proceedings will be held to determine any non monetary damages like removing Frazer and barring the defendants from leading nonprofits, if the jury finds them liable on the relevant counts.

The state’s lawsuit initially sought to dissolve the NRA entirely, but the court threw that request out in March 2022 while letting the rest of the case go forward. Key Background The NRA is one of the most powerful lobbying groups in the U.S. and has largely been recognized as a key reason for right wing lawmakers’ refusal to take steps toward gun control in the wake of numerous mass shootings.

LaPierre, whose resignation will take effect Jan. 31, has led the group since 1991, staunchly opposing gun laws and declaring in 2012, after the Sandy Hook Elementary School shooting, that “the only thing that stops a bad guy with a gun is a good guy with a gun.” Despite the group’s ubiquity, the NRA has faced troubles in recent years, losing approximately a million members since 2018 and seeing its revenue plummet amid lower membership and higher legal costs.

Financial audits reported in October 2023 by left leaning watchdog Citizens for Responsibility and Ethics in Washington (CREW) reported the NRA’s revenue dropped 52% between 2016 and 2022, adjusting for inflation. The NRA declared bankruptcy and tried to reorganize itself in Texas in Jan. 2021, after James initially brought her lawsuit, with LaPierre admitting “an important part of this plan is ‘dumping New York.’” The bankruptcy case was dismissed in May 2021, however, with the court declaring the NRA had not filed for bankruptcy in good faith.

Further Reading NRA Chief Wayne LaPierre Resigns Amid Corruption Trial (Forbes) As Gun Violence Became Deadliest Problem In America, Congress Cut Funding To Research Solutions — At The NRA's Urging (Forbes) Judge blocks New York's bid to close NRA (Reuters) NRA revenue in freefall as member dues plummet (CREW).