New York Attorney General Moves To Dissolve The NRA After Fraud Investigation

The Attorney General of New York took action today to dissolve the National Rifle Association, following an 18-month investigation that found evidence the powerful gun rights group is “fraught with fraud and abuse.”

Attorney General Letitia James claims in a lawsuit filed Thursday that she found financial misconduct in the millions of dollars, and that it contributed to a loss of more than $64 million over a three year period.

The suit alleges that top NRA executives misused charitable funds for personal gain, awarded contracts to friends and family members, and provided contracts to former employees to ensure loyalty.

Seeking to dissolve the NRA is the most aggressive sanction James could have sought against the not-for-profit organization, which James has jurisdiction over because it is registered in New York. James has a wide range of authorities relating to nonprofits in the state, including the authority to force organizations to cease operations or dissolve. The NRA is all but certain to contest it.

Allegations against former CFO Woody Phillips

James’ lawsuit alleges that Phillips, whose job it was to manage the financial operations of the charitable organization, lied on financial disclosure forms and set up numerous deals to enrich himself and his girlfriend.