This archive report was first published on 7 August 2020.
On August 6, 2020, the New York Attorney General's office filed a lawsuit against the National Rifle Association (N.R.A.) seeking its closure. The lawsuit alleges a pattern of corruption and mismanagement within the organization.
At the center of the allegations is Wayne LaPierre, the N.R.A.'s chief executive, who hired a convicted embezzler as a personal assistant. The assistant allegedly used N.R.A. funds for personal expenses, and LaPierre's general counsel, John Frazer, was described as 'overmatched' for the job, with only 18 months of private practice experience.
Another key figure is Charles Phillips, the former treasurer and chief financial officer, who presided over the N.R.A.'s governance practices alongside LaPierre. Phillips failed to disclose a personal relationship with the CEO of a company paid $1.4 million by the N.R.A. and was paid $30,000 a month for consulting work he did not perform, according to the complaint.
Phillips' lawyer disputed the claim, stating that his client 'definitely did work' as part of the consulting agreement, but offered few specifics. The lawyer added that Phillips 'acted in good faith' and was 'very surprised' that the transactions were being characterized differently.
The lawsuit also claims that the chairman of the N.R.A.'s audit committee had little awareness of its governance role and no knowledge of state law concerning such committees. The committee's charter states that it oversees the organization's financial integrity.
Several top officials have been forced out amid an internal dispute over how the N.R.A. is run, including Oliver North, its former president, and Christopher Cox, the former top lobbyist. North, a right-wing pundit, is referred to in the complaint as 'Dissident No. 1' and is said to be cooperating with the inquiry.