NRA appealed the NY judge’s refusal to dismiss Count One of the complaint. The appellate court rejected that and affirmed the judge’s ruling.
“Plaintiff alleged in detail that the NRA failed to properly administer charitable assets, resulting in improper administration and diminution of property held for charitable purposes; engaged in waste and diversion of charitable assets; and retaliated against whistleblowers. These allegations are sufficient to state a claim under EPTL 8-1.4, which enhances New York Attorney General’s enforcement powers and authorizes it to institute proceedings against trustees who fail to properly administer charitable assets. . . .”
“We have considered the NRA’s remaining arguments and find them unavailing.”
We wonder when the board will be informed of this ruling?
We’re blogged on the Brewer firm’s track record here, and here. Not to mention here and here.
NRA in Danger 
The only wins Brewer has is to his bank account as he sucks the NRA dry.
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Several former presidents of the NRA are lawyers. The current president of NRA is a lawyer. They allowed and continue to allow mismanagement and waste of corporate assets.
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The current President, Charles Cotton, serving an almost unprecedented third term in that office, is not only President and a lawyer, he’s also longtime Chair of the NRA Audit Committee. In the bankruptcy, President Cotton, testified that he was not familiar with New York law regarding the duties and responsibilities of the Audit Committee, nor with the NRA charter regarding same. He stated that he was not aware of any obligation for the Audit Committee to be a watchdog over the NRA’s finances and procedures, as is clearly spelled out in New York law and the NRA Charter, and that to his knowledge, the Audit Committee only exists to coordinate with the outside audit firm and to address things like possible conflicts of interest and whistleblower complaints. He went on to admit several egregious failings in those areas where he did believe the Audit Committee has responsibilities. He admitted to steering outside auditors away from the EVP’s (LaPierre’s) office, failing to address obvious conflicts of interest, failing to penalize the EVP and others for not reporting conflicts of interest in a timely manner, and failing to follow-up on, and protect whistleblowers. His only excuse was, “I trust Wayne.”
The Second Vice President, David Coy, is a CPA and also serves as Vice Chair of the Audit Committee, after spending many years as the Chair of that committee. His testimony was similar to that of Mr. Cotton’s, and he too offered no excuse other than his trust in Wayne.
These are not stupid people. They both clearly have credentials and experience that should qualify them to execute their duties as officers and leaders of the Board and the Audit Committee, and they have clearly failed in those duties and responsibilities.
Every member of the Board has a legal obligation to be thoroughly familiar with applicable NY law, as well as the NRA Charter and Bylaws. NY law REQUIRES them to know this stuff and failure to know it, or properly apply it, is totally inexcusable — morally and under the law.
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99% of lawyers make the other 1% look bad.
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The count of incompetent and malfeasant officers and board members is unusually high, almost statistically impossible in an organization the size of the NRA. That is unless the single most important characteristic that was looked for upon hiring these individuals was incompetence.
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The facts are out there. The admonition is clear as could be to anyone who can read. Col Lee fell into line after his loose talk got him a 2nd interview. Not one of the 76 BofDs has made a motion, raised a concern, reached out to the members,(that are left) stood up to Brewer. The entire lot of them needs to go.
To stand up and call yourself a members organization is farcical at best.
It is truly sad that I have more faith in a NY judge than I do the attorney seemingly representing the organization. (Yes I know what his real agreement is)
I certainly don’t see this ending well from either side. I do say, I have serious faith in 3 or 4 of the petition candidates who have bravely stood to represent the membership. Please accept my thanks for being the men we need right now.
Rocky Marshall
Phil Journey
Jeff Knox
Thank you. Thank you. Thank you.
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