NRA Issues Subpoenas To 3 Board Members In Ack-Mac Lawsuit (Updated)

I missed this story when it came out three days ago. It seems that attorneys for the NRA in their suit against Ackerman McQueen have issued subpoenas to three Board members. The subpoenas for documents were sent to Oliver North, Lance Olson, and Dan Boren.

From the Daily Beast which I acknowledge is a left-leaning anti-NRA publication:

Previously unreported court documents show the group served a subpoena on Oliver North late last month. It also subpoenaed Lance Olson and Daniel Boren, according to the documents; all three men are members of the NRA’s own board.

The subpoena asks for a number of documents from North: anything sent from April 10 to May 22 regarding people who work for the NRA’s longtime ad firm, Ackerman McQueen; any communications sent over the NRA’s contentious Indianapolis convention about CEO Wayne LaPierre or Ackerman McQueen; documents about the NRA’s expenditures; documents about North’s expenses; and communications about leaks.

The subpoena points to the friction between the NRA and its former president and highlights the extent to which the fight roiling the organization is focused on money and media. It specifically demands communications “related to a ‘leak’ or dissemination of previously non-public documents or information,” and cites stories from the Washington Free Beacon and The Daily Beast. The NRA previously alleged that the ad firm leaked confidential information to media outlets as part of an effort to damage senior officials in the NRA.

The NRA made the same document demands of Boren and Olson. It also demanded that North appear for a deposition on June 13 in a location the two parties would agree to, and that Olson do the same on June 17.

Lawyers for North did not immediately respond to a request for comment. A spokesperson for Ackerman McQueen declined to comment.

The story did not publish the court documents nor did it specify whether the subpoenas were in relation to the first lawsuit the NRA filed against Ack-Mac or the second. Without paying a significant fee, access to the City of Alexandria Circuit Court filings is limited to a dated notation listing the filing in a case.

I can see the NRA's attorneys issuing a subpoena to Oliver North as he is at the center of the lawsuits. I can even see the subpoena for Dan Boren who is from Oklahoma and reportedly opposed Wayne LaPierre at a reception during the NRA Annual Meeting. However, I don't understand the subpoena to Lance Olson nor why certain other members such as Lt. Col. Allen West or Richard Childress didn't receive subpoenas.

It will be interesting to see what happens at the next NRA Board meeting scheduled for September 13th in Anchorage, Alaska. Will there be a move to expel certain board members such as Lt. Col. North, Allen West, and others from the Board of Directors? An unnamed board member told me not to be surprised if this happens. North, by the way, was the leading vote getter in the 2019 BOD election surpassing even Ted Nugent.


UPDATE: The number of people getting subpoenas is now at least four. Rob Pincus acknowledged on Facebook that he had been served with one by the NRA's lawyers with reference to the Ack-Mac lawsuit. Stephen Gutowski of the Free Beacon tweeted about it a few hours ago. A copy of the subpoena with Rob's address information redacted can be found on Scribd.com here. He is being asked to produce letters, memos, and other communications concerning "previously non-public" information related to Wayne LaPierre, Oliver North, Marion Hammer, and Tyler Schropp. Mr. Schropp is in charge of the NRA's fund raising operations.

UPDATE II: Checking the case number on the subpoena served on Rob Pincus it comes from the second NRA lawsuit against Ackerman McQueen. This is the lawsuit which accuses Ack-Mac of instigating a "coup" against Wayne LaPierre. I presume the other three who have been subpoenaed are being subpoenaed as a result of this suit as well.

The big picture question in all of this is what role is being played by the NRA's outside counsel William Brewer III. Due to his ethics issues in Texas which are now before the Texas Supreme Court, he has not been granted leave to practice in Virginia.

UPDATE III: Checking the docket for this case, I see that there have been a total of six subpoenas issued. Two more were issued on June 4th. As to whom they were issued, I don't know yet. I will report on that when I find out. To read case documents for that case directly from the City of Alexandria Clerk of Circuit Court's website is $50 per month which I don't anticipate me deciding to pay anytime soon.

Ack-Mac Letter Regarding LaPierre Expenses

Over and above Wayne LaPierre's spending on his wardrobe are expenses he billed to Ackerman-McQueen for travel, food, and apartment rental for an intern according to a letter they sent to him on April 22nd. These expenses have become the basis for stories in the Wall Street Journal, The Hill, and many other publications.

From the Wall Street Journal:

National Rifle Association Chief Executive Wayne LaPierre billed the group’s ad agency $39,000 for one day of shopping at a Beverly Hills clothing boutique, $18,300 for a car and driver in Europe and had the agency cover $13,800 in rent for a summer intern, according to newly revealed NRA internal documents.

The documents, posted anonymously on the internet, provide new details of the clothing, travel and other expenses totaling more than $542,000 that Ackerman McQueen Inc. alleges Mr. LaPierre billed to it.

The travel expenses allegedly include more than $200,000 in “Air Transportation” costs during a one-month period in late 2012 and early 2013, in part related to a two-week trip over Christmas to the Bahamas by Mr. LaPierre.

The additional details behind the ad agency’s claims comes as Mr. LaPierre faces internal scrutiny at the NRA over his expenses amid an extraordinary falling-out between the NRA and Ackerman McQueen.

Carolyn Meadows, the new NRA President, in a statement to the WSJ said:

The NRA released a statement from Carolyn Meadows, its new president, who said the “entire board is fully aware of these issues. We have full confidence in Wayne LaPierre.” She added that “it is troubling and pathetic that some people would resort to leaking information to advance their agendas.”

I sure hope Mrs. Meadows is using the royal we to refer to herself when she says "we have full confidence in Wayne LaPierre" because I would hope that some board members - and I know there are some who don't have full confidence in Wayne.

These photos of the letters seem to have been taken of a letter that was printed in landscape mode which explains why pages 3 and 5 only contain one line of data.

There has been much speculation about then-intern Megan Allen and why her apartment expenses were covered in part or full for three months.  I'm not going to get into these but I suggest you check out her LinkedIn page for her current position with the NRA and her work and educational background. Given the controversy, I'd do that sooner than later.  As to the apartment complex, The Ridgewood II by Windsor apartments are located in Fairfax.

Ack-Mac Letter Regarding Clothing Purchases

Suing Ackerman-McQueen might have been a smokescreen as some have said to cover the fiduciary lapses of NRA executives and board members but it seems to have become a bonfire. We are now finding out that Wayne LaPierre was quite the clothes horse. Given his preference for navy blue suits and white shirts, you have to wonder just how many he needed.

As I facetiously said on Facebook, for that amount of money, Wayne could have flown to Hong Kong, stayed in a first-class hotel, gotten measured, and come home with quite a few custom suits that looked like that they actually fit him for a heckuva lot less money. Indeed, he could have even been measured by many Hong Kong custom tailors here in the United States as his measurements changed over time.

Ackerman McQueen's Statement On NRA Lawsuit

Ackerman McQueen is the largest and oldest ad agency in Oklahoma City. An Oklahoma City news, politics, and entertainment website, The Lost Ogle, refers to them as "OKC's most revered and reviled ad agency." Not living in Oklahoma, I can speak to the veracity of that comment. However, their article was useful in pointing me to the complete statement from Ack-Mac on the NRA lawsuit.

From The Oklahoman:

"During a three-week review, an NRA forensic auditing firm received every single piece of information they (the NRA) requested.

Further, the NRA has had consistent access to any and all documents regarding NRATV analytics.

Despite the representation set forth in their lawsuit, the NRA had the personnel contract they claim AM (Ackerman McQueen) withheld last week before they filed their lawsuit. It was provided by the Williams & Connolly law firm. The transfer occurred as a result of a process for delivery of such highly confidential information.

This flagrant misrepresentation, along with other false claims, serve as the foundation of malicious intent exemplified by this lawsuit.

Months ago, legal counsel informed the NRA that “Mr. Brewer himself has an irreconcilable conflict of interest. Mr. Brewer is the son-in-law of Angus McQueen and brother-in-law of Ackerman McQueen’s CEO, Revan McQueen. Mr. Brewer has demonstrated, in words and deeds, his animus for Ackerman McQueen and these family members and that animus pervades the Brewer firm’s dealings with Ackerman McQueen, whether dealing directly with Ackerman McQueen or through other members of his firm.”

Ackerman McQueen has served the NRA and its members with great pride and dedication for the last 38 years. The NRA’s action is frivolous, inaccurate and intended to cause harm to the reputation of our company and the future of that 38-year relationship.

This lawsuit affects not only Ackerman McQueen, but the members of the organization whose dedication to the Second Amendment is shared equally with the defendants in this case. Much like we have done for the NRA and the Second Amendment over the past 38 years, we too will defend our position and performance aggressively."

You can tell this was written by a PR person. That last paragraph is evidence of that.  As to their lawfirm, Williams and Connolly is pretty fancy. Reports say their first year associates start at $200 grand. You have to bill a lot to be able to pay that.

The NRA Sues Their Ad Agency Ackerman McQueen (Update)

I don't begin to know or understand all the internal politics and machinations at the National Rifle Association. I do know that advertising firm Ackerman McQueen and their PR subsidiary Mercury Group have long been considered the power behind the throne. If reports are to be believed, they are the ones who orchestrated the ascension of Wayne LaPierre and the eventual departure of the late Neal Knox. Having heard the story from multiple sources, I give them a lot of credence.

Thus, it was quite surprising to read in yesterday's Wall Street Journal that the NRA was suing Ackerman McQueen and Mercury Group. The story has since been picked up by the New York Times, Fox News, the Washington Post, and a number of other media outlets.

The lawsuit was filed on Friday, April 12, 2019, in the Circuit Court for the City of Alexandria (Virginia). The lawsuit accuses Ackerman McQueen of impeding efforts by the NRA to inspect book and records including contracts related to the existing services agreement. This inspection is essential for the NRA Board to fulfill its fiduciary duty and to comply with New York non-for-profit law which governs the NRA's activities since it is incorporated in that state.

The specific concerns that the NRA sought to investigate include:

• Out of pocket expenses that lacked documentation as required by the Services Agreement
• Lack of transparency regarding annual budgets as well as adherence to the budgets by Ackerman McQueen
• Lack of transparency regarding "fair market value" determinations for services
• Concerns that the NRA was being invoiced for the full salaries of NRA-Dedicated Personnel despite these people spending time on non-NRA clients
• Refusal to provide data in writing on number of visitors, viewership numbers, and other performance metrics related to NRATV

A footnote also said that many of NRA's stakeholders were concerned "that NRATV's messaging - on topics far afield of the Second Amendment - deviated from the NRA's core mission and values." I know many of my friends in the Second Amendment community shared this concern.

I should note at this point that NRATV is owned by Ackerman McQueen and that personalities such as Cam Edwards and Ginny Simone are actually Ack-Mc employees. This, in turn, is the heart of the other major aspect of this lawsuit - the role of Oliver North with Ackerman McQueen and to whom he owes his allegiance.

The lawsuit alleges that Audit Committee of the Board of Directors sought to review the full contract between Ackerman McQueen and Col. North but was rebuffed. Moreover, North's attorneys indicated he would only "disclose a copy of the contract to the NRA subject to AMc's consent."

 The NRA's General Counsel was finally allowed to see the contract but was not allowed to have a copy. This review by the General Counsel led to many questions. These included a) was North a 3rd-party contractor or an employee of Ack-Mc with a duty of loyalty to them; b) whether previously disclosed costs borne by the NRA for the "North Contract" were accurate; and c) "whether the contract imposed obligations on Col. North that prevent him from communicating fully and honestly with other NRA fiduciaries about AMc." Thus, the NRA says it became determined to resolve these issues.

The suit asks that Ackerman McQueen be found in breach of contract, that they be required to furnish the NRA copies of all AMc-Third Party NRA Contracts, that they be ordered to furnish the NRA with copies of annual budgets for the period 2016-2018, a list of all NRA-Dedicated personnel and the amount of time they devote to the NRA account, and copies of all records that would show the costs to the NRA or the NRA Foundation (from Jan 1, 2018 through April 1, 2019) incurred by North's American Heroes series, from compensation to Col. North, from office space rented for Col. North or related staff, and whether each item was billed specifically to the NRA, the Foundation, or both.

Ackman McQueen contends this lawsuit is the work of the NRA's outside counsel William Brewer III who is the in-law of their co-CEOs Revan and Angus McQueen. However, the lawsuit is brought by the Virginia law firm of  Briglia Hundley not by Mr. Brewer's firm. Todd Rathner, NRA Board Member, speculates that the attack on Mr. Brewer is the work of the pro-AckMc faction of the Board in an effort to undermine Wayne LaPierre.

Board members Todd Rathner and Joel Friedman are on the record about the lawsuit with the New York Times.

The suit culminates the fracturing of a more than three-decade relationship between Ackerman and the N.R.A., going back to the shaping of such memorable lines as Charlton Heston’s proclaiming that his gun would have to be pried “from my cold, dead hands.” Wayne LaPierre, the longtime chief executive of the N.R.A., had previously been a steadfast champion of the Ackerman relationship.

“I think it says something about Wayne’s character, even though he’s had a long-term working business relationship with a vendor, he’s willing to do what is right and necessary for the N.R.A. and its members,” said Todd Rathner, a board member of the rifle association.

Joel Friedman, another board member, said he was dismayed that the documents had not been turned over.

“It leaves you questioning, and you can come up with all these potential different scenarios as to why, but none of them are good,” he said.

“My mind goes to: Are they overcharging us? That’s one,” he added. “Two, are there things charged to us that were not part of the contract? Then, No. 3, has there been a misallocation of personnel?”

It will be interesting to hear the discussion, if any, of this case at the NRA Annual Meeting which starts in little more than a week. As for me, the fact that Board members are finally questioning the costs as well as the role of Ackerman McQueen is good news. In a saner world, with a smaller board that held actual power, the Ackerman McQueen contract would have been put up for bid multiple times over the years. That it hasn't is a disgrace.


UPDATE:  Sebastian at Shall Not Be Questioned had this to say, in part, about the lawsuit.

This is a struggle that needs to happen. Bitter and I are not as anti-Ack-Mac as some folks. We think there’s merit to some of their work, and they do some things do well. But we also believe their relationship with NRA is unhealthy, and there probably is not be any fixing it. Sometimes you’re just better off pulling the tooth, rather than trying to save it. This is probably one of those cases.

I had a call out of the blue late this afternoon from a person on the NRA Board. It was off the record and not for attribution. This person thinks that the lawsuit might be a smokescreen to protect the NRA from New York State. It gives the impression that they are taking their fiduciary and financial duties seriously. As both the lawsuit notes and I mentioned above, the State of New York revised their statutes to require not-for-profits to do more due diligence and to pay more attention to where members and donors money is being spent.

The rationale behind this being a smokescreen to protect the NRA is that, according to this person, the NRA had not been requiring any sort of invoices or other detailed record-keeping for services rendered in years gone by. In other words, Ack Mc said here is how much we want and please send us a check. God forbid that they were that slack but I believe it.








So that you can read the whole lawsuit, I'm embedding it at the bottom of this post.

NRA v Ackerman McQueen by on Scribd