Former NRA CFO Banned for 10 Years, Owes $2M in Lavish Spending Scheme

Wilson "Woody" Phillips, the former NRA finance chief, has been banned from managing nonprofit funds in New York for ten years. He owes $2 million to the NRA for facilitating extravagant spending by CEO Wayne LaPierre, according to the state's attorney general on July 9.

Phillips Banned from Nonprofits for 10 Years, Owes $2M to NRA for LaPierre's Extravagant Spending

Phillips consented to the prohibition in May, three months after a jury determined that he was responsible for a scheme to have the influential gun rights organization finance the extravagant lifestyle of Wayne LaPierre, the organization's longstanding CEO. The settlement's specifics were not disclosed to the public until July 9.

Phillips is prohibited from serving as a fiduciary of a not-for-profit organization in New York for ten years and must undergo training before resuming any such role, as stipulated in the agreement. According to ABC News, he remains responsible for $2 million in damages to the NRA due to his involvement in concealing and facilitating LaPierre's extravagant expenditures on private aircraft, superyachts, and exotic getaways.

Due to the settlement, Phillips, currently retired, will not be required to participate in the second phase of a trial in New York Attorney General Letitia James' civil lawsuit against the NRA and former senior executives, which is scheduled to take place next week.

Beginning July 15, Manhattan Judge Joel Cohen will resolve the remaining matters in the case, such as whether former general counsel John Frazer and LaPierre should be prohibited from participating in charitable organizations in the state.

Among other things, Phillips was accused of authorizing invoices for LaPierre's private jet flights to the Bahamas, facilitating payments to contractors owned by LaPierre's friends, and enabling an arrangement through which the NRA reimbursed its longtime advertising agency, Ackerman McQueen, for travel, makeup, and other expenses it covered for LaPierre and his wife.

“For decades, Wilson Phillips oversaw and allowed financial mismanagement and corruption at the NRA, and that is why the jury found him, the NRA, and his co-defendants, senior executives Wayne LaPierre and John Frazer, liable for their misconduct," James said in a statement. She said Phillips' 10-year ban "should serve as an example that my office will hold anyone, and everyone, involved in abusing their power or misappropriating funds accountable.”

Phillips' attorney was issued an inquiry for commentary.

NRA attorney William A. Brewer III issued a statement in which he stated, "Today's announcement distorts the record and reveals the intentions of the New York attorney general: to prioritize her own interests over those of the NRA members she claims to be safeguarding."

“Importantly, the settlement does not secure the monetary relief against Mr. Phillips that the jury awarded to the NRA – for Mr. Phillips’ participation in schemes that damaged the Association. Unfortunately, the agreement does nothing to effect collection of the millions that Mr. Phillips owes,” Brewer said.

LaPierre and Phillips Ordered to Repay Millions to NRA; Judge to Rule on Leadership Bans and Oversight

In February, the initial phase of the trial concluded with a jury in Manhattan's state court concluding that LaPierre had misappropriated millions of dollars in NRA funds. The jury determined that Phillips owed $2 million and LaPierre must repay the NRA nearly $4.4 million.

The jury found Frazer to have violated his duties, but they did not determine that he owed any money or that there was a valid reason to remove him from the organization. The NRA was also found to have violated whistleblower protections under New York law, omitted or misrepresented information in its tax filings, and failed to manage its assets properly.

Just before the trial began in January, Joshua Powell, LaPierre's former chief of staff, settled with James' office. Powell, who documented "staggering" waste and corruption in his 2020 book Inside the NRA, consented to testify at the trial, pay the NRA $100,000, and waive any additional nonprofit involvement.

LaPierre tendered his resignation upon the eve of the trial. Doug Hamlin, the executive director of the NRA's publications division, was elected as his successor in May. Frazer was concurrently relieved of his position as general counsel; however, he continues to serve as the NRA's corporate secretary. Phillips retired in 2018.

James filed a lawsuit against the NRA and its executives in 2020, utilizing her authority to investigate not-for-profit organizations that were registered in the state. Cohen ruled in 2022 that the allegations did not necessitate a "corporate death penalty," even though she had initially sought to dissolve the entire organization.

The trial emphasized the influential lobbying organization's leadership, organizational culture, and finances. Established in New York City over 150 years ago to promote rifle skills, it became a political force that impacted federal law and presidential elections.

James is securing an independent monitor to supervise the NRA's management of charitable assets during the second phase of the trial.

James is also attempting to prohibit LaPierre from holding leadership positions at any charitable organization in New York and the NRA and Frazer from collecting funds on behalf of any charitable organization operating in the state.

“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,” James said.

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