A jury on Friday found that Wayne LaPierre diverted millions of dollars from the National Rifle Association to fund a lavish lifestyle, but that the gun rights group failed to properly manage its finances.
The verdict was handed down after five days of deliberation, ending a seven-week civil corruption trial in New York City.
The lawsuit against the NRA stems from a lawsuit filed in 2020 by New York State Attorney General Letitia James, which accused LaPierre and other current and former executives of ignoring state laws and internal policies to line their own pockets. .
Other defendants were John Fraser, the NRA's corporate secretary and general counsel, and Wilson “Woody” Phillips, its former treasurer and chief financial officer.
The jury ruled primarily in James' favor and found the National Rifle Association to have failed. To properly operate the nonprofit organization and its assets at all times; From March 20, 2014 to May 2, 2022.
The jury also found that LaPierre and Phillips: and all the Frasers Breached a legal obligation to faithfully perform the duties of the position.
If jurors found individual defendants liable, they had to recommend the amount each defendant would have to repay to the NRA.
They said Mr. LaPierre caused financial damages to the NRA of $5.4 million, of which he has already repaid at least $1 million. The 74-year-old appeared calm as the verdict was read.
Phillips caused $2 million in monetary damages to the NRA, but Frazier was found not to have caused any financial damages to the group.
Fraser is the only individual defendant still working for the NRA.The jury found Fraser made or authorized a false statement. The NRA's annual report says there is no reason to remove him from his position.
Mr. LaPierre served as the NRA's chief executive officer and executive vice president for more than 30 years until he resigned at the end of January due to health problems.
Regardless of his resignation, the jury found that There was also a reason for Mr. LaPierre's expulsion from the NRA.
Mr. LaPierre emerged from the courthouse Friday night, surrounded by five police officers, ignoring reporters.
Jurors also found the NRA violated the law The company failed to adopt a whistleblowing policy, which resulted in eight employees being affected by the violation.
State Supreme Court Justice Joel Cohen will have the final say on remedies. As early as July, the case could decide whether individual defendants should be permanently barred from serving on New York charity boards and whether an independent monitor should oversee the NRA's finances. be.
Five of the six jurors had to agree with each part of the verdict.
In a statement, James called the ruling “a huge victory for the people of New York and our efforts to stop NRA corruption and greed.”
“Mr. LaPierre and NRA executives blatantly abused their position and broke the law,” she said. “But today, after years of rampant corruption and self-dealing, Wayne LaPierre and the NRA are finally being held accountable.”
Mr. James' lawyers spent six weeks in a Manhattan courtroom portraying the NRA as “Wayne's World,” offering free private jets, expensive meals, travel consultants, private security, and trips to the Bahamas for Mr. LaPierre and his family. Claimed it was full.
During closing arguments, Monica Connell, an attorney with the state attorney general's office, likened the defendants to children who were caught stealing from the cookie jar.
She asked jurors to hold the defendants accountable even if their attorneys outlined steps they may have taken to address or correct the violations.
“Saying I'm sorry now doesn't mean I didn't accept the cookie,” she said.
NRA lawyers countered by distancing the group from Mr. LaPierre and beefing up its defense, alleging that the former corrupt official stole from the NRA without the group's knowledge.
“If this is a case about corruption, it's not corruption by the NRA,” NRA attorney Sarah Rogers told jurors.
In his closing remarks, Mr. LaPierre's lawyer, P. Kent Correll, said that Mr. James planned to “decapitate” the NRA several years ago and sued Mr. LaPierre as part of that goal.
LaPierre said on stage that he used the organization's resources to charter a private jet, take family vacations, service a black car and give luxury gifts to friends. He also testified that NRA executives authorized thousands of dollars for helicopter rides to avoid getting stuck in traffic to and from NASCAR races.
During cross-examination, Mr. LaPierre testified that it is wrong to charter a private plane or limousine service for personal use.
No defendants have been criminally charged as part of James' case.
James initially sought to dissolve the NRA as part of the lawsuit. But Cohen rejected that effort in 2022, saying her complaint “does not allege the type of public harm that is the legal linchpin for imposing the 'corporate death penalty.'”
The NRA has operated as a nonprofit charitable corporation in New York since 1871. It is required by law to use its assets in a manner that is in the interests of its members and in a manner that promotes charitable causes.
In recent years, the NRA has become considerably weaker, with its influence in politics declining and its membership declining. Membership has fallen to 4.2 million from nearly 6 million five years ago, the New York Times reported.
Dues decreased by $14 million from 2021 to 2022, according to an audit filed as part of the lawsuit.