Second Round Of NY Suit Heats Up

Here is New York’s witness list. It is short, but lists two expert witnesses (the first and the last), a number of reforming directors, and a few bad guys. Here is New York’s exhibit list.

Here is NRA’s witness list, and its exhibit list. Item 330 is a reference to amending the articles of incorporation.

And from the report of one of the experts NY wants to call:

20. Ackerman McQueen (“Ackerman”) was one of the NRA’s largest vendors, providing the NRA with advertising and marketing services. Contractual documentation and other record evidence show that virtually all aspects of the Ackerman relationship were overseen by the EVP. The NRA paid Ackerman (and related party Mercury) over $205.0 million in fees from June 2013 through February 2020, under contracts that were not subject to the formal review and approval processes required by NRA policy.

21. In addition to the non-compliance with procurement policies, the NRA also processed and paid millions of dollars in “out-of-pocket expenses” submitted by Ackerman for expenditures incurred by Ackerman and NRA employees without review and verification that the goods and services comprising the associated invoices were received or appropriate, as required by NRA policies.

22. Under Wild Skies, Inc. (“UWS”) produced a television program of the same name of which the NRA has been a sponsor since the 1990s. In return for its sponsorship, the NRA received various forms of advertising during the televised program. In the early years of their business relationship, the NRA paid UWS without the benefit of a written contract or required review and approvals. More recently, the NRA paid UWS over $12.4 million from 2015 through 2019 under agreements that did not follow required review and approval processes under NRA policy. Furthermore, the NRA paid an additional $2.3 million9 to UWS President (who is also the President of the Ackerman-owned Mercury Group and a personal friend of the NRA EVP), without evidence of a written contract. 

23. Gayle Stanford (“Stanford”) was the NRA EVP’s personal “travel consultant” and provided services to the NRA from approximately 1993 through 2020. Ms. Stanford, through several business entities, was paid over $2.7 million in fees without a written contract (until 2019) or other review and approval processes required by NRA policy.

72. I have also noted other discreet issues from the record evidence that are illustrative of
problematic tone at the top, particularly the notion of lack of enforcement and accountability. Examples include the following:

An employee in the EVP’s office misappropriated approximately $40,000 from the
NRA. The consequences to the employee were repayment of the amount and revocation
of credit card privileges. The EVP testified that the NRA’s choice not to terminate the
employee or bring a lawsuit against her was based on the employee’s medical condition
at the time. The employee was recently terminated in September 2022.

An employee that abused credit card privileges had his corporate credit card revoked,
but the same employee was later given a pay increase doubling his salary.

A senior employee was terminated for performance reasons and escorted off NRA
premises, but then provided a post-employment consulting contract totaling $1.68
million for two years. The employee was recently terminated in August 2022.

Finally, the EVP was required to reimburse the NRA for over $650,000 in excess
benefits he received at the NRA’s expense, but a director having similarly received approximately $55,000 in excess benefits was terminated.

195. Below is a sample of the types of expenses included in these reports:

 Mr. Minson’s March 31, 2017, February 14, 2017, June 4, 2018 expense reports included the following hotel and lodging fees for Mr. Makris: $32,898 for a four-night stay at the Four Seasons in Las Vegas, NV for “TM Lodging Food and Beverage Jan 31 – Feb 4;” $23,692 for a stay at the Four Seasons in Las Vegas, NV for “Four Seasons Lodging & Meals T Makris” and “Balance on Four Seasons Lodging & Meals T Makris;” and $11,511 for a stay at the Rosewood Mansion on Turtle Creek in Dallas, TX for “TM May Travel Part 1,” respectively.

 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;”251 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,”252 respectively.