Menu
Tax Notes logo

Finance Committee Dems Seek Info From NRA on Alleged Misconduct

MAY 3, 2019

Finance Committee Dems Seek Info From NRA on Alleged Misconduct

DATED MAY 3, 2019
DOCUMENT ATTRIBUTES
  • Authors
    Wyden, Sen. Ron
    Whitehouse, Sen. Sheldon
    Menendez, Sen. Robert
  • Institutional Authors
    U.S. Senate
    Senate Finance Committee
  • Code Sections
  • Subject Area/Tax Topics
  • Industry Groups
    Nonprofit sector
  • Jurisdictions
  • Tax Analysts Document Number
    2019-17439
  • Tax Analysts Electronic Citation
    2019 TNT 87-26
    2019 EOR 6-46
  • Magazine Citation
    The Exempt Organization Tax Review, June 2019, p. 464
    83 Exempt Org. Tax Rev. 464 (2019)

May 3, 2019

Wayne LaPierre
Chief Executive and Executive Vice President
National Rifle Association of America
11250 Waples Mill Road
Fairfax, VA 22030

Dear Mr. LaPierre:

We are writing to request information related to public statements retired Lieutenant Colonel and former National Rifle Association President Oliver North recently made alleging financial improprieties at the NRA that could jeopardize the organization's nonprofit status. As the NRA's Chief Executive and Executive Vice President, we believe you are uniquely suited to shed light on any potential improper activity within the organization or any of its vendors.

On April 26, 2019, the New York Times reported that Col. North sought your resignation from the NRA over allegations of financial misconduct.According to a statement read by Richard Childress on Col. North's behalf at the NRA's 2019 annual meeting in Indianapolis, Indiana, Col. North created an “NRA Crisis Management Committee” and issued a memo to the NRA Executive Committee on April 25, 2019 outlining his allegations.2 In an April 25, 2019 letter addressed to the NRA Board, you wrote, “[North's] letter would contain a devastating account of our financial status, sexual harassment charges against a staff member, accusations of wardrobe expenses and excessive staff travel expenses.”3

The Senate Finance Committee is charged with administration of matters relating to taxation, including oversight of tax-exempt organizations. Therefore, we request you provide the following:

1. A copy of the April 25, 2019 letter you submitted to the NRA Board of Directors and any related documentation, memos, or other supporting materials.

2. The April 25, 2019 memo Col. North provided to the NRA Executive Committee and any other letters or memos he provided to the NRA Board of Directors or the NRA Executive Committee related to allegations of financial misconduct or the organization's nonprofit status, and supporting materials.

3. Any internal or third party audits, reviews, or investigations conducted by or for the “NRA Crisis Management Committee.”

4. Any findings, reports, or other conclusory materials produced by or for the Crisis Management Committee or any other NRA Committee related to alleged financial misconduct or the NRA's nonprofit status.

Requested materials and any materials reasonably related to the requested materials should not be destroyed, altered, or otherwise made inaccessible to the Committee. Please provide these materials no later than May 16, 2019. If you have any questions regarding this request, please contact Finance Committee staff at (202) 224-4515.

Thank you for your prompt attention to this matter.

Sincerely,

Ron Wyden
Ranking Member

Sheldon Whitehouse
United States Senator

Robert Menendez
United States Senator

 


May 3, 2019

Lieutenant Colonel Oliver North
Founder & Honorary Chairman
Freedom Alliance
22570 Markey Court, STE 240
Dulles, Virginia 20166

Dear Lieutenant Colonel North:

We are writing to request information related to public statements you recently made alleging financial improprieties at the National Rifle Association that could jeopardize the organization's nonprofit status. Given your experience as the NRA's president, we believe you are uniquely suited to shed light on any potential improper activity within the organization or any of its vendors.

On April 26, 2019, the New York Times reported that you sought the resignation of Wayne LaPierre, Chief Executive and Executive Vice President of the NRA, over alleged misconduct.1 According to a statement read by Richard Childress on your behalf at the NRA's 2019 annual meeting in Indianapolis, Indiana, you also created an “NRA Crisis Management Committee” and issued a memo to the NRA Executive Committee on April 25, 2019 outlining your allegations.2 Reporting by the Wall Street Journal indicates that you sent at least one additional letter to the NRA Executive Committee detailing allegations that included excessive staff wardrobe and travel expenses.3

The Senate Finance Committee is charged with administration of matters relating to taxation, including oversight of tax-exempt organizations. Therefore, we request you provide the following:

1. Any letters you wrote to the NRA Board of Directors or NRA Executive Committee outlining your allegations of misconduct and any underlying supporting documentation.

2. The April 25, 2019 memo you provided to the NRA Executive Committee and any supporting documentation.

3. Any internal or third party audits, reviews, or investigations conducted by or for the “NRA Crisis Management Committee” that you created and any supporting documentation.

4. Any findings, reports, or other conclusory materials produced by or for the Crisis Management Committee related to alleged financial misconduct or the NRA's nonprofit status and any supporting documentation.

Requested materials and any materials reasonably related to the requested materials should not be destroyed, altered, or otherwise made inaccessible to the Committee. Please provide these materials no later than May 16, 2019. If you have any questions regarding this request, please contact Finance Committee Democratic staff at (202) 224-4515.

Thank you for your prompt attention to this matter.

Sincerely,

Ron Wyden
Ranking Member

Sheldon Whitehouse
United States Senator

Robert Menendez
United States Senator

 


 

May 3, 2019

Revan McQueen
Chief Executive Officer
Ackerman McQueen
1601 Northwest Expressway, STE 1100
Oklahoma City, OK 73118

Dear Mr. McQueen:

We are writing to request information related to public statements retired Lieutenant Colonel and former National Rifle Association President Oliver North recently made alleging financial improprieties at the NRA that could jeopardize the organization's nonprofit status. As the CEO of the NRA's largest vendor and the company — according to NRA Chief Executive Wayne LaPierre — that authored documents detailing those allegations, we believe you are uniquely suited to shed light on any potential illegal activity within the organization.

On April 26, 2019, the New York Times reported that Col. North sought Mr. LaPierre's resignation from the NRA over allegations of financial misconduct.1 In an April 25, 2019 letter addressed to the NRA Board, Mr. LaPierre claimed that your firm, Ackerman McQueen (Ackerman), drafted and was prepared to release a letter detailing “a devastating account” of the NRA's financial status:

“Yesterday (April 24, 2019) at approximately 2:58 p.m. EST, Col. North placed a telephone call to Millie Hallow, one of my most senior staff members. Millie returned the call and took notes, the substance of which appears below.

Col. North stated that the purpose of the call was to relay the contents of a letter drafted by AM [Ackerman McQueen]. According to Col. North, he had been advised by Dan Boren — a member of our Board and an employee of AM's client — that unless I resigned as the Executive Vice President of the Association, Ackerman would transmit this allegedly damaging letter to the entire NRA Board. According to Col. North, the letter was “bad” for me, two other members of my executive team, and the Association.

I believe the purpose of the letter was to humiliate me, discredit our Association, and raise appearances of impropriety that hurt our members and the Second Amendment. The letter would contain a devastating account of our financial status, sexual harassment charges against a staff member, accusations of wardrobe expenses and excessive staff travel expenses.”2

The NRA has claimed in a suit that Ackerman is in possession of detailed financial records that could further elucidate these allegations and an Ackerman spokeswoman has claimed that your firm has already submitted to at least —

one internal forensic audit.3 The Senate Finance Committee is charged with administration of matters relating to taxation, including oversight of tax-exempt organizations. Therefore, we request you provide the following:

1. A copy of the letter Mr. LaPierre alleges your firm to have authored and any evidence in support of the allegations contained within that letter.

2. Any other materials Ackerman prepared or contributed to for Col. North to provide to the NRA Board of Directors or the NRA Executive Committee related to allegations of financial misconduct or the organization's nonprofit status.

3. Any internal or third party audits, reviews, or investigations conducted by or for the NRA or Ackerman.

Requested materials and any materials reasonably related to the requested materials should not be destroyed, altered, or otherwise made inaccessible to the Committee. Please provide these materials no later than May 16, 2019. If you have any questions regarding this request, please contact Finance Committee Democratic staff at (202) 224-4515.

Thank you for your prompt attention to this matter.

Sincerely,

Ron Wyden
Ranking Member

Sheldon Whitehouse
United States Senator

Robert Menendez
United States Senator

 

FOOTNOTES

New York Times, Insurgents Seek to Oust Wayne LaPierre in N.R.A. Power Struggle, April 26, 2019; www.nytimes.com/2019/04/26/business/nra-wayne-lapierre-oliver-north.html

2YouTube, Richard Childress Remarks, published April 27, 2019; www.youtube.com/watch?v=NcOCbYOcNEM

3Wayne LaPierre letter to the NRA Board, April 25, 2019; https://assets.documentcloud.org/documents/5979828/Wayne-LaPierre-NRA-board-letter.pdf

1New York Times, Insurgents Seek to Oust Wayne LaPierre in N.R.A. Power Struggle, April 26, 2019; www.nytimes.com/2019/04/26/business/nra-wayne-lapierre-oliver-north.html

2YouTube, Richard Childress Remarks, published April 27, 2019; www.youtube.com/watch?v=NcQCbYOcNEM

3Wall Street Journal, NRA's Wayne LaPierre Says He Is Being Extorted, Pressured to Resign, April 26, 2019; www.wsj.com/articles/nras-wavne-lapierre-says-he-is-being-extorted-pressured-to-resign-11556314763

1New York Times, Insurgents Seek to Oust Wayne LaPierre in N.R.A. Power Struggle, April 26, 2019; www.nytimes.com/2019/04/26/business/nra-wayne-lapierre:pliver—north.htmJ

2Wayne LaPierre letter to the NRA Board, April 25, 2019; https://assets.documentcloud.org/documents/5979828/Wayne-LaPierre-NRA-board-letter.pdf

3Wall Street Journal, NRA Files Suit Against Ad Agency in Rift With Key Partner, April 15, 2019; www.wsj.com/articles/nra-files-suit-against-ad-agency-in-rift-with-key-partner-11555320601

END FOOTNOTES

DOCUMENT ATTRIBUTES
  • Authors
    Wyden, Sen. Ron
    Whitehouse, Sen. Sheldon
    Menendez, Sen. Robert
  • Institutional Authors
    U.S. Senate
    Senate Finance Committee
  • Code Sections
  • Subject Area/Tax Topics
  • Industry Groups
    Nonprofit sector
  • Jurisdictions
  • Tax Analysts Document Number
    2019-17439
  • Tax Analysts Electronic Citation
    2019 TNT 87-26
    2019 EOR 6-46
  • Magazine Citation
    The Exempt Organization Tax Review, June 2019, p. 464
    83 Exempt Org. Tax Rev. 464 (2019)
Copy RID