Judge must evaluate solutions against the National Rifle Association and Wayne LaPierre in civil corruption trial

A New York judge will begin weighing remedies Monday against the National Rifle Association and some of its former leaders, months after a jury found the gun rights group and its executives liable in a civil trial. for corruption.

In a second phase of the trial, state Supreme Court Justice Joel Cohen will determine whether to appoint an independent monitor to oversee the NRA for three years and bar former NRA executive Wayne LaPierre from returning to lead the organization or any one of its affiliates. .

In February, a jury determined that LaPierre, 74, embezzled millions of dollars from the NRA to live lavishly while the gun rights group failed to properly manage its finances and adopt a whistleblower policy.

The case was prompted by a lawsuit filed in 2020 by New York Attorney General Letitia James, who accused LaPierre and other current and former executives of flouting state laws and internal policies to enrich themselves.

The jury found that LaPierre violated his legal obligation to perform the duties of his office in good faith, as did John Frazer, the group’s current corporate secretary and former general counsel, and Wilson “Woody” Phillips, its former treasurer and chief financial officer. from the NRA.

Joshua Powell, former chief of staff and executive director of general operations, was also a defendant. But Powell reached an agreement with the attorney general’s office before the trial began.

During the trial, James’ lawyers painted the NRA as “Wayne’s World,” which they said was full of free private jets, expensive meals, travel consultants, private security and trips to the Bahamas for LaPierre and his family.

Jurors said LaPierre caused $5.4 million in monetary damages to the NRA, but that he has already repaid at least $1 million of that amount. Phillips caused $2 million in monetary damages to the NRA, they found, while Frazer caused no monetary damages to the group.

Frazer is the only individual defendant still working for the NRA. The jury determined that he made or authorized a false statement in the NRA’s annual records, but that there was no reason to remove him from office.

However, the jury concluded that there was cause for LaPierre’s removal from the NRA. LaPierre served as CEO and executive vice president of the NRA for more than 30 years before announcing his resignation in early January, days before the trial began, citing health concerns.

Lawyers for the defendants filed motions to set aside the jury’s verdict, but the judge denied those requests in June.

Cohen has set aside two weeks for final court proceedings to determine whether to grant non-monetary aid.

In an appeal, LaPierre’s attorney, P. Kent Correll, challenged the attorney general’s proposed appeal seeking to permanently bar LaPierre from serving the NRA or any of its affiliated entities.

Doing so would censure LaPierre, Correll said during oral arguments in June, adding that his client does not live in New York and that he “should be free to associate with whoever he wants, however he wants, without government interference.”

“He paid the price. He is retired. He’s not coming back,” Correll said, according to a court transcript. “But he wants to maintain his right to freely associate with whoever he wants and to speak freely.”

Earlier this week, the parties announced a stipulation agreement on the appropriate remedy for Phillips that removes him from the second phase of the trial.

Phillips, who is retired, will be banned from holding fiduciary positions at any New York nonprofit organization for 10 years. After a decade, he will be able to resume service if he first notifies the Attorney General’s Office and completes a training program.

He will still have to pay $2 million in compensation, the attorney general said.

The attorney general also proposed imposing restrictions on Frazer and requiring him to undergo training.

“New Yorkers deserve to know that when they support a nonprofit, those donations are being used to advance its mission, not wasted on generous perks for employees or friends,” said James.

Attorneys for LaPierre, Phillips and Frazer did not respond to requests for comment.

In a statement to NBC News, NRA attorney William A. Brewer III said the attorney general cannot prove that the NRA continued to violate any laws. “Therefore,” he said, “the relief the NYAG seeks in the form of a monitor is unwarranted.”

The NRA said it fired those who took advantage of the group and introduced a new slate of leaders, including a new chief compliance officer, an internal auditor and a new president.

In May, the organization replaced Frazer with a new general counsel, although he was reelected to serve as corporate secretary, the NRA said.

The NRA has operated as a nonprofit charitable corporation in New York since 1871. Its assets are required by law to be used in a way that serves the interests of its members and promotes its charitable mission.

NRA members’ dues and contributions have fallen sharply in recent years, court records show.

Dues fell from about $170 million in 2018 to nearly $62 million in 2023, according to a court document containing the NRA’s audited financial statements. Contributions were almost halved during this period.

The NRA said the decline was a direct result of the attorney general’s lawsuit.

“Our adversaries have been predicting the demise of the NRA for decades,” said NRA spokesman Andrew Arulanandam. “We are still here after a prolonged, politically motivated attack on us by the New York Attorney General and gun control groups.”

Gun safety advocates said the corruption trial showed that outside intervention is needed to hold the NRA accountable and rebuild trust with members and donors.

“It is imperative that their corrupt behavior be checked by the court,” said Emma Brown, executive director of the gun control advocacy organization Giffords.

LaPierre may be gone, but some longtime directors and officers are still in leadership, said Nick Suplina, senior vice president of law and policy at Everytown for Gun Safety, a national gun violence prevention nonprofit.

“The NRA cannot be allowed to follow its own set of rules,” he said.