Another NY Expert Witness Report

There are plenty of bombshells in this report, by forensic accountant Eric Hines, but the biggest set begins on p. 72. He itemizes expenses “passed through” to NRA by the PR agency Ackerman McQueen (CFO Jeff Minson), prior to the Ackerman-NRA breakup.

“Mr. Minson’s April 15, 2016 expense report included $42,915 in flight tickets for Mr. LaPierre (WLP), Mrs. LaPierre (SLP), and Mr. Makris (TM) ($14,305 per ticket), for three line item descriptions: “DC Miami Airfare for WLP [SLP, TM] Argentina Hunting May 2016.”

Mr. Minson’s March 10, 2016, April 15, 2016, and February 14, 2017 expense reports included hotel and lodging fees for Mr. LaPierre: $6,728 for a two-night stay with two rooms at the Ritz Carlton in Orlando, FL for “WLP lodging Jan14-16 Orlando FL;” $4,454 for a five-night stay at the Four Seasons in Las Vegas, NV for “Lodging WLP March 8th thru 13th;” and $2,334 for a four-night stay at the Four Seasons in Las Vegas, NV for “WLP lodging in Las Vegas January 14-18,” respectively.

Mr. Minson’s August 16, 2017 expense report included a $6,497 gift for Mr. LaPierre from Blaser USA (a firearm company) for “WLP 25 Anniversary gift.”2

Mike Denney’s February 9, 2017 included $4,185 in charges for technology for Mrs. LaPierre for “Purchase a MacBook Pro, iPad Pro & iPod for Susan LaPierre” and “LAM headphones, Apple TV & HMDI cable for Susan LaPierre.”

Mr. Minson’s April 15, 2016, August 19, 2016, and July 11, 2018 expense reports include $13,283, $8,229, and $11,590 in charges to the Landini Brothers restaurant . . . in meals for Mr. Makris, Mr. LaPierre, Mr. Powell (JP), Tyler Schropp, Millie Hallow, and others.

Mr. Minson’s June 5, 2017 and May 11, 2018 expense reports include $25,300 and $18,656 in charter flights. . . .

Mr. Schropp’s August 28, 2017, February 28, 2018, and March 30, 2018 credit card statements included the following airfare expenses incurred for Mr. Schropp: $5,664 for a roundtrip first-class ticket from Washington, DC (Dulles) to London, England (Heathrow); $2,747 for a one-way business-class ticket from Washington, DC (National) to Phoenix, AZ to San Francisco, CA; and $2,454 for a one-way business-class ticket from Washington, DC (National) to Phoenix, AZ.

Mr. Schropp’s May 29, 2018, February 28, 2018, and October 28, 2017 credit card statements included the following hotel expenses incurred for Mr. Schropp: $9,365 for an eight-night stay (appears to be for two rooms) at the Mansion Turtle Creek in Dallas, TX;$5,703 for a four-night stay at the Beverly Hills Hotel in Beverly Hills, CA; and $4,685 for a two-night stay at the Beverly Hills Hotel in Beverly Hills, CA.

The sixth category included hair and makeup services, provided by Brady Wardlaw and Debbie Dover, among others. The invoices included details indicating the hair and makeup services were for Susan LaPierre, including single invoices for $10,275 and $8,300.” Susan LaPierre’s “getting ready” for NRA events was a little expensive.

The report then focuses on Under Wild Skies. (P. 86) Of the 12 million paid it, the expert was only able to account for 8 million. “I was also able to trace an additional $210,000 expenditure listed in the general ledger to an underlying document outlining the charges related to a game hunting safari in Africa with an entity called Rovos Rail. The invoice related to this trip covered spots for seven individuals at $28,000 per person, as well as a $14,000 gratuity.” Nice tip!

“Mr. LaPierre directed Mr. Makris to pay for various NRA Board Members and Officers and their spouses to participate in big game hunts around the world. These trips were not authorized by resolution of the NRA Board or an authorized committee. According to Mr. Makris, a game hunt of this nature can cost upwards of $100,000.”

The report then deals with Gayle Sanford, the travel agent who arranged the leased jet flights. “From January 2015 through February 2020, the period for which I have relevant general ledger information, I identified $13.5 million payable transactions representing invoices from Stanford to the NRA.” The arrangement violated multiple NRA policies, and in fact didn’t even have written contract. “Considered in totality, the record evidence reflects millions of dollars of expenditures from the NRA to Stanford entities each year which were not subject to applicable reviews, approvals, and internal control steps required by NRA policies. In addition, my analysis indicated the billing mechanisms and fee structures were varied and opaque, as will be discussed subsequently.”

It cites a case where a $41,000 charter flight was to Kearny, Nebraska (to pick up Mrs. LaPierre’s niece) then on to the Bahamas, but LaPierre instructed Stanford to make the invoice read “Wash/Milwaukee/Florida”. (P. 106)

“GS2 invoice number 3094 dated August 23, 2016 for $48,232.59 lists dates in July and August for cars for Mr. LaPierre, Ms. Hallow, and Mr. Schropp. . . .” “On May 25, 2016, Stanford billed the NRA a total of $216,711.82 for car services from May 16 through May 23 in Louisville.” Nearly a quarter mill, to move three people around at the annual meeting?

Then it turns to what sounds like hush money. “Robert Kyle Weaver (“Mr. Weaver”) served in the position of Executive Director of General Operations for ten years until October 2016 when he was terminated, and I understand escorted from NRA property.” NRA then agreed to play him $1.8 million over two years for “consulting services.” Not a bad way to get fired.

“In summary, the NRA entered into this agreement committing the organization to pay $1.8 million to a terminated employee for undefined consulting services without following the required review and approval processes from the NRA Procurement Policy. Furthermore, the NRA processed payments to Mr. Weaver without having invoices or underlying supporting documentation evidencing any services were provided, which is not in accordance with the NRA’s Accounting Procedures and Guidelines.”

Then there’s Wayne Sheets, who retired as head of the NRA Foundation. “H.W.S. Consulting, Inc. (“H.W.S.”) is Mr. Sheet’s business entity through which the NRA paid Mr. Sheets approximately $4.3 million for consulting services post-retirement.”

Then there’s Michel Marcellin, who retired as NRA Managing Director of Affinity and Licensing. “Mr. Marcellin was paid over $2.6 million in post-retirement bonuses from the NRA.” Post-retirement bonuses?

And the former treasurer, Woody Phillips, who upon retiring, got a $30,000/month consulting contract. Nobody can recall him doing any consulting.

The report then focuses on NRA Amex credit cards issued to staff: “Between 2013 and 2020, over $60 million in expenses were charged to credit cards issued to NRA personnel.”

“I observed transactions that appear to be characteristic of purchases at high-end hotels, limousine services, and first and business class flights, among other expense types.” The report lists $10 million for commercial flights, $6 million for high-end hotels, $419,000 for restaurants, and $320,000 for golfing expenses.

“As another example, Thomas Tedrick’s NRA-issued Card statements indicated a September 12, 2018 expense for a business class ticket for passenger Harold Sheets (former NRA employee) at a cost of $4,614. In yet another example, Thomas Tedrick’s NRA-issued Card statements indicated a June 15, 2018 charge expense for a business class ticket for passenger Ms. Meadows (former NRA president) at a cost of $9,861.”

“From 2013 to 2020, there were over 1,000 individual AMEX charges, totaling approximately $560,000, for purchases by NRA Personnel that related to limousine rental services. the vast majority, over $400,000, had been charged to AMEX cards issued to Mr. Phillips, Ms. Hallow, and Mr. Schropp (approximately $200,000, $115,000, and $114,000, respectively. I also noted that limousine expenses had been charged to cards issued to NRA Board Members and other key individuals; for example, Ms. Meadows – Current NRA President (totaling approximately $31,000), Joseph Debergalis – Former NRA Board Member (totaling approximately $23,000), and David Keene – Current NRA Board Member (totaling approximately $2,500).”

“Between 2014 through 2020, there were approximately $420,000 in restaurant expenses by NRA Personnel where individual charges were over $500 each. For example, in the two years 2019 through 2020, there were $18,000 in expenses charged to Ms. Meadows’s NRA-issued Card consisting of 8 transactions at various steakhouses – an average of over $2,000 per visit. In just three days, January 24 to 26, 2018, over $30,000 was charged to Christopher Sprang’s NRA credit card at the restaurant AquaKnox, a high-end seafood restaurant in Las Vegas. Over a five-year period 2014 – 2018, over $60,000 was charged to Mr. Phillips’s NRA-issued Card at Margaritaville in Nashville, at an average cost of $4,000 per visit.”

We are staggered, I can’t put it in other words. Millions of members kicking in their $45 per year, and these people are blowing it all on limos, first class tickets, thousand-dollar dinners, international hunting trips, and golf fees.