New York Attorney General Letitia James announced a settlement with the National Rifle Association’s (NRA) former Chief Financial Officer (CFO), Wilson “Woody” Phillips. The agreement bans Phillips from serving as a fiduciary of any not-for-profit in New York for ten years and mandates training before he can return to such positions. In February, a jury found Phillips liable for violating his duties in managing the NRA's financial affairs, resulting in $2 million in damages. A second trial phase, scheduled to begin on July 15, was set to determine whether Phillips should be barred from re-election or appointment as an NRA officer or director or from serving as a fiduciary in any other New York state not-for-profit corporation.
Attorney General James stated, "New Yorkers deserve to know that when they support a not-for-profit, those donations are being used to advance its mission, not squandered on lavish perks for staff or cronies." She added, "For decades, Wilson Phillips oversaw and allowed financial mismanagement and corruption at the NRA."
James filed a lawsuit against the NRA and its senior officers in August 2020. Wayne LaPierre stepped down as Executive Vice President and CEO of the NRA just before the trial commenced. The jury found all defendants—Phillips, LaPierre, John Frazer, and the NRA—liable for violating New York not-for-profit laws.
During a six-week trial, evidence presented by the Office of the Attorney General (OAG) revealed extensive violations by senior leaders of the NRA. This included invoices for private flights taken by LaPierre paid for by the NRA; expense reports submitted by LaPierre for personal services like mosquito treatment and landscaping; lucrative contracts given to companies owned by LaPierre’s friends; over $4 million worth of vague invoices from Ackerman McQueen approved by Phillips; and whistleblower testimony detailing retaliation within the organization.
The second phase of Attorney General James’ trial against LaPierre and Frazer is set to begin on July 15 before Justice Joel Cohen without a jury to determine non-monetary relief.
This matter is managed by Assistant Attorney General Monica Connell and Chief Emily Stern among others from the Charities Bureau under Chief Deputy Attorney General Meghan Faux’s leadership.