NRA Ex-CFO 10-year NY Nonprofit Ban
America ı By Rihem Akkouche
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A former chief financial officer of the National Rifle Association has agreed to a 10-year ban from serving as a fiduciary of a New York nonprofit as part of a settlement in the state attorney general's lawsuit alleging misuse of donor funds by NRA executives, according to deal terms disclosed Tuesday.
NRA Ex-CFO 10-year NY Nonprofit Ban: Details of the Settlement
The agreement allows Wilson "Woody" Phillips to avoid a second-phase bench trial that will address nonmonetary equitable remedies, such as the possible installation of a compliance monitor for the NRA.
In February, a jury found that the NRA, Phillips, longtime CEO Wayne LaPierre, and general counsel John Frazer misused millions of donor dollars. The jury ordered LaPierre to pay $4.4 million and Phillips $2 million.
NRA senior strategist Joshua Powell settled with the state shortly before the first trial, agreeing to pay $100,000 and accepting a permanent ban on serving as an officer of New York charities.
"New Yorkers deserve to know that when they support a not-for-profit, those donations are being used to advance its mission, not squandered on lavish perks for staff or cronies," New York Attorney General Letitia James said in a statement Tuesday.
Legal Representation and Next Steps
An attorney for Phillips did not immediately respond to requests for comment Tuesday. According to the settlement, once the 10-year ban expires, Phillips must notify James' office in writing and complete a fiduciary training program before serving as a fiduciary for any charitable organization.
The second-phase trial, set to begin Monday, will proceed against the NRA, LaPierre, and Frazer. LaPierre resigned from the NRA on the eve of the first trial after leading the organization since 1991. James' office aims to secure a ban preventing LaPierre from returning to the NRA.
NRA Ex-CFO 10-year NY Nonprofit Ban : Background of the Case
The state filed the lawsuit in August 2020, claiming the NRA had become a "breeding ground for greed, abuse, and brazen illegality," seeking to dissolve the organization. However, state Supreme Court Justice Joel M. Cohen ruled against dissolution, citing First Amendment concerns.
Following the lawsuit, the NRA declared bankruptcy, but a Texas bankruptcy judge dismissed the Chapter 11 case in March 2021, determining it was a strategy to gain a litigation advantage in the New York case.
During the trial, LaPierre admitted he failed to inform the NRA's board about certain private jet expenses and vendor relationships. The state presented evidence that LaPierre received reimbursements from the NRA for personal expenses, including landscaping and mosquito treatment at his home, as well as gifts for family and friends.
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