NRA Shows their Petticoats, and the US Trustee Objects to Brewer

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NRA Shows their Petticoats, and the US Trustee Objects to Brewer, iStock

U.S.A.-(AmmoLand.com)- The judge in the NRA’s Chapter 11 bankruptcy case, has set March 9th, 2021, as the date for hearing most of the early motions. That’s the day when we should find out whether the judge is going to throw the case out altogether or allow it to continue.

The first item on the agenda for that hearing is supposed to be Phil Journey’s motion to have an Examiner appointed to investigate the litany of accusations made against the Association’s executives and officers. Journey was elected to the NRA Board last year and raised the ire of NRA leadership with his motion. That was followed by a motion from Ackerman McQueen, calling for the bankruptcy to be dismissed, or if not dismissed, for a Trustee to be appointed. That motion was echoed the next day in a motion from the NY AG’s office.

The difference between a Trustee and an Examiner is, to a large extent, up to the judge and what powers and scope he wishes to give to either, but typically, an Examiner investigates, while the company continues to be run by its normal leadership, while a Trustee typically replaces the corporate leadership, taking control of the company and its operations.

It seems likely that the judge if he decides to allow the bankruptcy to proceed, will appoint an Examiner to investigate and report back on any chicanery. Then the judge can use that information to decide whether to appoint a Trustee or broaden the powers of the Examiner. It’s also worth noting that a Trustee costs a whole lot more, and those costs would fall on the NRA.

That was the big news from last week. This week, the NRA filed their required statements of assets and liabilities, revealing some interesting numbers. The US Trustee office, a government agency that handles administrative matters for bankruptcy courts, filed an objection to a request that Brewer Attorneys and Counselors be allowed to be a special counsel to assist the NRA’s primary bankruptcy attorneys. And one of the NRA’s top vendors, a company called Membership Marketing Partners, filed a motion asking the judge to order the US Trustee to dissolve the current Creditor Committee and appoint a new committee of creditors.

There’s a lot to unpack in these filings, and a lot of it is deeply intertwined, so let’s start with the last filing first.

The Creditor Committee is comprised of a sampling of major creditors and is tasked with advising the judge on behalf of all of the creditors. The Committee is selected by the US Trustee office, and they chose the Pension Benefits Guarantee Corporation, Ackerman McQueen, InfoCision Inc., Stone River Gear, and David Dell’Aquila. For more information about these creditors, read my previous article about the NRA bankruptcy here.

Membership Marketing Partners (MMP) wants Ackerman McQueen, Dell’Aquila, and the Pension Benefits Guarantee Corp., replaced with creditors more like MMP and InfoCision. MMP is a direct response marketing and fundraising company located inside the NRA headquarters building. They are the ones who write, print, and mail all of those letters telling you that you must send money now or lose your gun rights forever. In 2019 they were paid $11.5 million by NRA, and in the three months, before NRA filed for bankruptcy, they paid Membership Marketing just under $4 million. InfoCision, which is already on the Creditor Committee, is also a current vendor of NRA’s, and they were paid $21.7 million by NRA in 2019, and $4.1 million in the 90 days before the bankruptcy filing.

In other words, MMP and InfoCision are only creditors to the tune of their typical 30-day receivables invoices. They both average around $1 million to almost $2 million per month off of the NRA and have been doing so for years under the LaPierre regime. Why would they want to change anything?

Unlike a typical bankruptcy, where creditors are worried about getting paid, this NRA bankruptcy is not about money, but rather about control. The group currently in control of the NRA wants to remain in control. They think they have a better chance of maintaining that control as a Texas corporation, as opposed to a New York corporation, so they are using the bankruptcy laws as a tool to reorganize the corporation in Texas. Most of their creditors don’t have money at risk, but those engaged in litigation against the NRA, have a serious interest in how this all plays out. It appears that the US Trustee office recognized the unique situation in this bankruptcy, and selected the Creditor Committee accordingly.

If the bankruptcy case gets bounced, those folks will be back in court hoping to salvage something after Letitia James gets through with the NRA. Dell’Aquila has invested well over $100,000 of his own money in the class action on behalf of NRA members, and even if he wins his case, he will not have those expenses reimbursed.

The other interesting filings so far this week, were the NRA’s declaration of assets and liabilities, including the expenses paid in the 90 days prior to filing bankruptcy, and an Objection filed by the US Trustee office to having Bill Brewer’s law firm participating in the NRA’s bankruptcy case.

There are lots of juicy tidbits in the financial disclosure documents, including the fact that Brewer Attorneys and Counselors was paid over $17.4 million in just 3 months. That’s over $5.8 million per month! This revelation dovetails nicely with the Objection filed by the US Trustee Office.

Early in the filings, NRA filed a motion to have Brewer’s firm added as a “Special Counsel” to assist the firm hired to handle the bankruptcy, and that motion was what the US Trustee office has now objected to. In their objection, the Trustee not only points out the fact that Brewer is named as a central figure in several past and ongoing NRA lawsuits, and is married to the daughter of the founder of Ackerman McQueen and sister of that company’s current CEO, but also rips Brewer and NRA for failing to report many of these conflicts as required by law.

In my opinion, I think it’s quite possible that formal complaints against Brewer could be on the way.

Meanwhile, all of this litigation and lawyering isn’t cheap for those of us trying to save the NRA either. As mentioned above, David Dell’Aquila has invested over $100k of his own money in his class-action suit, and there’s no mechanism for making him whole again, except for people who believe in what he’s doing to step up and help him fund it. The last time we spoke, he was looking for a bankruptcy lawyer in Texas to help him maneuver in that court, and that’s going to just add to his expenses.

While a formal fundraising site for Dell’Aquila’s efforts is being developed, The Firearms Coalition will accept and forward (without any fees or commission to us) any contributions readers would like to make to assist with funding that fight. Simply mark contributions as “for Dell’Aquila.”

Phil Journey has also gone out on a limb with financial commitments to lawyers. A tax-exempt fund has already been set up to assist with those efforts, so those interested in contributing to that can send checks to:

CDFE c/o Phil Journey
PO Box 501
Haysville, KS 67060

A portal for credit card donations should be available soon, but in the meantime, anyone wishing to contribute by credit card, and not concerned about getting the tax exemption, can use the Support link at www.FirearmsCoalition.org, tagging donations as “for Journey.”


About Jeff Knox:

Jeff Knox is a second-generation political activist and director of The Firearms Coalition. His father Neal Knox led many of the early gun rights battles for your right to keep and bear arms. Read Neal Knox – The Gun Rights War.

The Firearms Coalition is a loose-knit coalition of individual Second Amendment activists, clubs, and civil rights organizations. Founded by Neal Knox in 1984, the organization provides support to grassroots activists in the form of education, analysis of current issues, and a historical perspective of the gun rights movement. The Firearms Coalition has offices in Buckeye, Arizona, and Manassas, VA. Visit: www.FirearmsCoalition.org.

Jeff Knox

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JPM
JPM
3 days ago

As long as that crook LaPierre is in charge of the NRA and living large on members’ money, the NRA will continue to be the emasculated, compromising, failure of a so-called gun rights organization it has been for the last several decades, no matter where they are incorporated.

Cam
Cam
4 days ago

I wonder if this will discharge the lifetime membership benefits. Will I still get my rifleman or will it be awol?

Chev
Chev
5 days ago

Knox is just another little boy who is mad because his daddy had a falling out with the NRA years ago. Why post his drivel? Right now the various pro gun groups need to unite against a common foe, not start fights with each other. Knox needs to grow up.

Dave in Fairfax
Editor
Dave in Fairfax
5 days ago
Reply to  Chev

Chev,

Once again you are making personal attacks without refuting any of his points.

https://freebeacon.com/guns/new-york-ag-moves-to-toss-nra-bankruptcy/
Again, If you have anything on loan to the museum…

J
J
5 days ago
Reply to  Chev

Neil Knox fought the very type of contempt and arrogance that the NRA leadership is once again engaged in.

RoyD
RoyD
5 days ago
Reply to  J

Some of us who were around back then remember the battles Neal fought for the American citizen.

Last edited 5 days ago by RoyD
Knute
Knute
5 days ago
Reply to  RoyD

Why do you think that the few pro-NRA voices out there use such similar tactics as antifa and BAMN? Surely NRA lovers aren’t BAMN…. are they? Could they want to seem to be something other than what they really are? 🙂

JSNMGC
JSNMGC
5 days ago
Reply to  J

J, The NRA has compromised for a very long time. Their strategy has largely been one of lawsuits and lobbying. The problem goes way beyond Wayne. The NRA has, for a very long time, had a lawyer/marketing focus. There are many life members who would like to see more of a focus on data analysis and assistance to people debating anti-2nd Amendment personalities in highly publicized events. We believe the objective should be to convince voters that never-ending gun control is a problem, not a solution. The NRA has been unwilling to work with grassroots organizations. They have, for a… Read more »

USMC0351Grunt
USMC0351Grunt
5 days ago
Reply to  JSNMGC

SHOW OF HANDS: How many NRA members VOTED for somebody on the NRA ballots that didn’t have a freakin clue as to WHO they were voting for? Therein lies THE MAIN PROBLEM!

JSNMGC
JSNMGC
4 days ago
Reply to  USMC0351Grunt

Why do you apologize for them?

Cam
Cam
4 days ago
Reply to  USMC0351Grunt

Actually I was adding people like the president of Franklin armory. People who are vested in the industry and actually have things to loose if rights continue to be infringed on.

Charlie Foxtrot
Charlie Foxtrot
4 days ago
Reply to  Cam

You added people to the NRA Board of Directors election ballot? How? When?

Stag
Stag
5 days ago
Reply to  Chev

The problem is the NRA is not pro-2A and never has been. They’ve supported infringement since their inception. Why do you support a pro gun control organization?

Phillip Journey
5 days ago

Hi All. If you want to help find the truth with an independent investigation by the court appointed Examiner.

https://restorenra.com/

Any support is sincerely appreciated
Phil

JSNMGC
JSNMGC
5 days ago

Is the Examiner a lawyer or a forensic accountant or auditor?

JSNMGC
JSNMGC
4 days ago
Reply to  Jeff Knox

Thank you. I assume that means financial experts will be heavily involved.

I have seen lawyers do their own “financial investigations” and in both cases, they were disasters. The lawyers walked away convinced they had done a tip top job (and billed accordingly).

pigpen51
pigpen51
3 days ago

Phil,
Thank you and those who are attempting to make the NRA relevant once again. It is important that we have the NRA strong to fight the Biden administration. While other groups are doing good work, the NRA is still the largest group, with some estimated 5 millions members.

musicman44mag
musicman44mag
5 days ago

Gee such a long article on the NRA and the problems and Wayne Lapierre wasn’t mentioned one time. How could that be?

Larry
Larry
3 days ago
Reply to  musicman44mag

Because the article was about the mechanics of the lawsuit, not the content or validity of the evidence.

HikerJohn316
HikerJohn316
5 days ago

Facing this situation I am angry that Lapierre has not resigned and I hope there there will be elections for a new board. Are there not retired or independently wealthy 2A supporters who can do this job for the honor and the good of our country?

Charlie Foxtrot
Charlie Foxtrot
5 days ago
Reply to  HikerJohn316

You seem to misunderstand things.

Wayne LaPierre will never resign or retire, unless someone takes over for him who protects him. There are too many skeletons in the closet!

There are Board elections every year! They are rigged every year! Also, only very few Board members have actual powers and they are cronies.

Ansel Hazen
Ansel Hazen
5 days ago

Seems it becomes clearer and clearer that the NRA is just another get rich scheme masquerading as a non profit. Glad I have shifted my funding to more deserving organizations.

ArtP
ArtP
5 days ago

This is beginning to sound like the liberal press. Perhaps we could find a commentator who is not consistently anti-NRA. I cannot remember when you have had a positive thing to say about NRA. Nancy thanks you for the assistance.

Ansel Hazen
Ansel Hazen
5 days ago
Reply to  ArtP

The liberal press only posts lies. Jeff Knox is posting the truth. Sorry you don’t like hearing it.

Stag
Stag
5 days ago
Reply to  ArtP

The NRA has supported infringement since their inception. There is nothing nice to say about the NRA.

JSNMGC
JSNMGC
5 days ago
Reply to  ArtP

If the internet existed many decades ago, the NRA would only have been supported by Fudds because it would have been easy for the average firearm owner who believes in firearm rights to see what the NRA was doing.

Lawyers love the NRA.

The “new NRA” being promoted does not sound like they are going to fix the many problems that go beyond Wayne. They are not getting off to a good start with their pleas to “send money to pay lawyers.”

USMC0351Grunt
USMC0351Grunt
5 days ago
Reply to  JSNMGC

UH? The Internet DID exist “many decades ago”?

6 August 1991
On 6 August 1991, the World Wide Web went live to the world. There was no fanfare in the global press. In fact, most people around the world didn’t even know what the Internet was. Even if they did, the revolution the Web ushered in was still but a twinkle in Tim Berners-Lee’s eye.

Last edited 5 days ago by USMC0351Grunt
JSNMGC
JSNMGC
4 days ago
Reply to  USMC0351Grunt

No it hasn’t existed for many decades.

If it had existed for many decades (like nine), it is unlikely the NRA would have been successful in their strategy of compromise that has resulted in never-ending gun control laws.

Knute
Knute
4 days ago
Reply to  JSNMGC

The internet existed well before the World Wide Web. It was a world wide web… of TEXT sites since the 1950’s. I’ve been on it personally since 1980 when you had to get on by placing a wired phone handset into a 300 baud cradle. All you could do then was read text on a green (or amber, depending upon your CRT monitor) screen. Think the movie “War Games”, when Matthew Broaderick was a teenager, instead of having gray hair! 🙂 The difference was: then you had to be technologically savvy to use it, because every command had to be… Read more »

JSNMGC
JSNMGC
4 days ago
Reply to  Knute

You and USMC0351Grunt can go down that rabbit hole. The history of the internet is there for all to see with a quick search. It’s irrelevant to the discussion.

Charlie Foxtrot
Charlie Foxtrot
4 days ago
Reply to  JSNMGC

I did a quick search on the history of the internet: https://en.wikipedia.org/wiki/History_of_the_Internet

What you know as the World Wide Web started in the late 80s, with CompuServe and AOL emerging as dial-up Internet providers in the early 90s. That alone was 3 decades ago. Before that, there was ARPANET and NSFNET. ARPANET is considered the original Internet and was developed in the late 60s.

In contrast, Wayne LaPierre took full control of the NRA in 1991.

JSNMGC
JSNMGC
4 days ago

I know the history of the internet. I was commenting on the NRA, not Wayne. The problem with the NRA is, an always has been, bigger than Wayne.

Dave in Fairfax
Editor
Dave in Fairfax
4 days ago
Reply to  Knute

Knute,

Take it back a bit earlier. 1969, 110 baud coupler, Monroe 2200 terminal, USENET when there were only 6 groups. /killjob

Charlie Foxtrot
Charlie Foxtrot
4 days ago

USENET in 1969? Cool story, bro!

You are off by more than a decade. USENET was established in 1980. The ARPANET contract was awarded to BBN in 1969!

Read a book, or something: https://www.amazon.com/Where-Wizards-Stay-Up-Late/dp/0684832674

Dave in Fairfax
Editor
Dave in Fairfax
4 days ago

CF,

Apparently I wasn’t clear enough. The coupler and terminal were ’69 on a timeshare with Great Lakes Naval. USENET wasn’t then it was later, but had 6 groups when I started using it rec.wooddorking then rec.woodturning were my favorites. I don’t need to read a book, I was there.

Charlie Foxtrot
Charlie Foxtrot
4 days ago

Timesharing on and terminal access to a mainframe isn’t the Internet! In fact, the motivation for the Internet was that timesharing and terminal protocols and commands of the different mainframe manufacturers were incompatible with each other. That’s why IPTO at DARPA ended up with 3 different terminals in the same room in the mid-60s that were connected to 3 different mainframes using 3 different protocols and 3 different sets of commands. The whole purpose of ARPANET was to make mainframes somewhat compatible with each other, such that they could all be used with one terminal and even talk to each… Read more »

Dave in Fairfax
Editor
Dave in Fairfax
4 days ago

CF,
I’ll take your word for it. My intent was to point out the baud difference, to Knute, not get into a measuring contest.

Last edited 4 days ago by Dave in Fairfax
Knute
Knute
4 days ago

My first access to a mainframe was through Unix/Vax at Eastern Montana College (Now MSU-B) in 1985. Before that was the handset cradle and my Apple ][+… Mine had 64K! 🙂
Talking to you makes me feel young!

Dave in Fairfax
Editor
Dave in Fairfax
4 days ago
Reply to  Knute

Knute,

I’m still trying to clean out the house, so I got rid of my M$-DOS and DR DOS. the oldest I could find was Ver 1.05 where they apologized for using 64 K of memory, a huge increase.
Got rid of the pile of Epson Dot Matrix printers long and short bed. Maybe one of the schools can use my old fan fold paper and banner rolls.
My wife is one of the old COBOLers. We’re both getting up there. My first PC was an old CPM machine. I forget the make.

Knute
Knute
4 days ago

Commodore? They were big into CPM. Commodore Pet maybe? The one with the monitor and keyboard built into the motherboard, all in the one big old case? A roommate in the dorms had a Trash 80 with the giant floppy disks that ran on CPM.

Dave in Fairfax
Editor
Dave in Fairfax
3 days ago
Reply to  Knute

Knute, No I had a Trash-80 as well as an Adam, but those were much later. I’ve been trying to remember the name all night, Morrow, Federal, Eagle, Olympia…so many computers, so little memory(mine). Tons of luggables and lunchboxes. Heathkits, LOTS of built from scratch, they all run together this late in the day. Al Gore thinks he invented the Net, don’t tell Cerf and Kahn. People like Nielson have a better claim than anything he could dream up. The funniest book I read about computers was Accidental Empires: How the Boys of Silicon Valley Make Their Millions, Battle Foreign… Read more »

Knute
Knute
4 days ago

While you’re at it make sure you read THIS book! Official USG, USN, ONI, available from the US government through FOIA, or online for free here: https://educate-yourself.org/cn/silentweaponsquietwarsmay79.shtml “This publication marks the 25th anniversary of the Third World War, called the “Quiet War,”…. May 1979” 1979 minus 25 years equals 1954! “It is patently impossible to discuss social engineering or the automation of a society, i.e., the engineering of social automation systems (silent weapons) on a national or worldwide scale without implying extensive objectives of social control and destruction of human life, i.e., slavery and genocide. Such a writing must be… Read more »

Charlie Foxtrot
Charlie Foxtrot
4 days ago
Reply to  Knute

Trolling again with your ignorant assumptions about me? There are a lot of position papers, analyses and documents by US government agencies and its contractors as well as books about these activities. Some are more valuable than others. Some are of historical or technical value, some are just failures or science fiction. Among all this clutter, what is a “MUST READ” is a matter of personal opinion and interest. I am currently reading “Tuxedo Park: A Wall Street Tycoon and the Secret Palace of Science That Changed the Course of World War II”: https://www.amazon.com/dp/0684872889/. Before that, I read: “The Idea… Read more »

Oldvet
Oldvet
4 days ago
Reply to  Knute

Gee Guy’s I thought Al Gore said in 2005 he invented the inter net

Knute
Knute
4 days ago
Reply to  Oldvet

He did! In the dreamland he exists in… 🙂

Knute
Knute
4 days ago
Reply to  Oldvet

Don’t you just want to ask these people: “What color is the sky in your world?”, the way the cast of “Cheers” used to do when someone’s fantasies got out of control? 🙂

TStheDeplorable
TStheDeplorable
5 days ago

No “not for profit” should ever make any board member or executive rich. But overpaid board members who authorize obscene executive pay packages is the norm today, not the exception. It is to the point where the primary goal of the leadership of large not for profit organizations is to ensure the collection of sufficient funds to keep the leadership’s lavish salaries, benefits, retirements, and “golden parachutes” funded. The secondary goal is to do enough of the organization’s stated work (in this case fostering the lawful possession and use of firearms in America) to be able to avoid the laws… Read more »

Alan in NH
Alan in NH
5 days ago

I’m a life, benefactor member and it pains me to say it TS but you are right. Who elected Lapierre ‘President for Life’? Not me.

Phillip Journey
5 days ago
Reply to  Alan in NH

I hope to restore the trust between the membership and the leadership of NRA

HLB
HLB
5 days ago

It will be difficult to re-make the NRA. I am suspicious of the deep NRA state both internally and with contractors. There would have to be a really clean sweep of the existing elements that made up the previous NRA. It would almost have to be a complete new start with a new name and a known crusader of the 2nd Amendment as head. There are other organizations out there. Maybe a new and much smaller NRA working in cooperation with those other organizations could work. The new NRA would have to come out very pro-rights, pro-bump-stock, initiating lawsuits such… Read more »

USMC0351Grunt
USMC0351Grunt
5 days ago

That is an honorable vision Phillip however, the extent of damage that has been caused over the many years and the distrust that has swelled within the ranks, beating a dead horse will not bring it back to a full gallop.