In a significant ruling on Monday, a New York judge temporarily barred Wayne LaPierre from resuming his leadership of the National Rifle Association (NRA), marking a crucial moment in the ongoing legal battle against the gun rights organization.
State Supreme Court Judge Joel Cohen issued this temporary ban but notably decided against appointing an independent monitor to oversee the NRA’s finances, a key remedy sought by New York Attorney General Letitia James.
This decision comes in the wake of a civil corruption trial where a jury found the NRA and its executives, including LaPierre, liable for significant financial mismanagement. In February, the jury determined that LaPierre, now 74, had diverted millions of dollars from the NRA to fund a lavish lifestyle, while the organization itself failed to maintain proper financial oversight and implement a whistleblower policy.
Judge Cohen spent two weeks deliberating on potential non-monetary relief in this second phase of the trial. Although Attorney General James pushed for a permanent ban on LaPierre’s return to the NRA, Cohen settled on a 10-year prohibition instead. James also advocated for the appointment of an independent monitor to oversee the NRA’s finances and report to the court for three years, but Cohen chose not to implement this measure.
“The damages portion of the case we presented, as well as the earlier trial before the jury, demonstrated that the NRA had a stunning lack of accountability and its leaders engaged in illegality and self-dealing,” James stated. “As a result of this case, Wayne LaPierre will be banned from the NRA for 10 years for spearheading this fraud, and the court called for additional proposed reforms to the NRA. After years of corruption, the NRA and its senior leaders are finally being held accountable.”
LaPierre, who served as the NRA’s CEO and executive vice president for over three decades, resigned in early January, just days before the trial began, citing health issues. Despite his resignation, jurors found sufficient cause for his removal from the NRA, concluding that he and other top executives had violated their fiduciary duties.
The jury determined that LaPierre had caused $5.4 million in damages to the NRA, though he has reportedly repaid at least $1 million of this amount. Former NRA treasurer and chief financial officer Wilson “Woody” Phillips was found responsible for $2 million in damages, while corporate secretary and former general counsel John Frazer was not found to have caused any monetary harm.
In addition to LaPierre’s temporary ban, Judge Cohen also declined to impose any restrictions on Frazer. However, an agreement reached before the second trial phase stipulated that Phillips, now retired, will be barred from holding fiduciary positions with any New York nonprofit for a decade. After this period, Phillips can return to such roles only after notifying the attorney general’s office and completing a training program. He will still be required to pay $2 million in damages.
During oral arguments in June, LaPierre’s attorney, P. Kent Correll, contended against the ban, emphasizing that LaPierre had retired and had no intention of returning to the NRA. However, Correll insisted that LaPierre should retain his right to freely associate and express his views.
Attorneys for the NRA, LaPierre, and Frazer have not yet responded to requests for comment.
The NRA had strongly resisted the appointment of an independent monitor, arguing that the attorney general failed to demonstrate any ongoing legal violations by the organization. The NRA claimed to have addressed past issues by replacing problematic leaders and appointing a new chief compliance officer, an internal auditor, and a new president. In May, the NRA replaced Frazer as general counsel, though he remains the corporate secretary.
Operating as a nonprofit charitable corporation in New York since 1871, the NRA is legally obligated to use its assets to benefit its members and further its charitable mission. However, the organization has faced significant financial challenges in recent years. Membership dues have plummeted from approximately $170 million in 2018 to nearly $62 million in 2023, with contributions also experiencing a substantial decline.
This ruling marks a pivotal moment for the NRA as it navigates through legal scrutiny and financial instability. The organization, a powerful advocate for Second Amendment rights, now faces the challenge of rebuilding trust and stability amid ongoing legal and financial woes.
