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By Sarah May on
 January 8, 2024

Former NRA executive reaches deal with NY AG Letitia James in fraud case

Currently in the midst of a civil fraud lawsuit against former President Donald Trump, New York Attorney General Letitia James just reached what some may view as a surprising deal with a defendant in another high-profile case, namely, a corruption trial involving the National Rifle Association NRA), as the New York Post reports.

According to the outlet, Joshua Powell, the former executive director of the gun rights organization, entered into an eleventh-hour settlement agreement with James on Saturday, just prior to the start of a broader civil corruption trial against the advocacy group and members of its leadership team.

Powell was one of five named defendants in James' lawsuit, and based on the known terms of the deal, he will now pay $100,000 while also admitting to participation in the misuse of organization funds.

The Post indicated that Powell formerly served as the chief of staff to longtime NRA CEO Wayne LaPierre, who announced on Friday his plans to depart the organization effective Jan. 31, as Fox News noted.

LaPierre remains a defendant in James' lawsuit and faces allegations that he – and other top executives – spent NRA funds on private flights, luxury travel, and a host of other costly perks to the detriment of the organization, using it as a veritable piggybank for personal expenses.

The settlement agreement with Powell brings resolution to civil fraud and abuse claims against him, and in it, the former NRA executive admitted that he breached fiduciary duties by using charitable funds for personal benefit, as ABC News explained.

In addition to the aforementioned restitution obligation to which he agreed, Powell has accepted a permanent ban on accepting any role as an officer of a nonprofit organization, and he has agreed to provide testimony at the trial of the defendants who remain involved in the case.

James issued a statement heralding the recent developments in the case, declaring, “Joshua Powell's admission of wrongdoing and Wayne LaPierre's resignation confirm what we have alleged for years: the NRA and its senior leaders are financially corrupt.”

The statement went on, “More than three years ago, my office sued the NRA and its senior management for decades of financial abuse and mismanagement. These are important victories in our case, and we look forward to ensuring the NRA and the defendants face justice for their actions.”

James asserted that LaPierre's departure from the organization “validates our claims against him, but it will not insulate him or the NRA from accountability.”

The lawsuit at issue was brought by James in 2020, and though the organization maintains its headquarters in Virginia, its non-profit charter originated in New York, where the group was also formally incorporated.

Not long after, the NRA sought bankruptcy protection and attempted to pull up stakes and reincorporate in the state of Texas, in what was viewed as a bid to elude James' case.

However, the plan was ill-fated, and a judge ultimately rejected the gambit, opining that the group's bankruptcy petition was little more than a bad-faith effort to sidestep James' allegations in New York.

LaPierre, previously speaking about the New York civil case, declared it to be an “unconstitutional, premeditated attack aiming to dismantle and destroy the NRA – the fiercest defender of America's freedom at the ballot box for decades,” and whether the AG's arguments will win the day when all is said and done in the courtroom, only time will tell.

Written By:
Sarah May

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