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i. Defendant NRA never disclosed any of the numerous payments to officers and
directors in the “Related Party Transactions” note to its audited financial
statements.
ii. In its Forms 990 for 2015, 2016, 2017, and 2018, the NRA falsely reported that
it was not a party to business transactions with current or former officers,
directors, relatives thereof or entities affiliated therewith and failed to disclose
those transactions on Schedules L and/or R of its IRS Forms 990. As set forth
above, the NRA has been a party to multiple business transactions with current
or former officers, directors, relatives thereof or entities affiliated therewith that
the NRA failed to report.
iii. In its Forms 990 before 2017, the NRA overstated the number of independent
board members because it did not properly omit all board members engaged in
a business transaction with the organization for which payments of over
$100,000 were received, or board members who were paid more than $10,000
as independent contractors, or board members engaged in a single transaction
with the organization over $10,000.
b. False statements and omissions regarding compensation and to Officers and
Directors. For example:
i. In its Forms 990 for the relevant time period, Defendant NRA failed to disclose
the complete amounts paid to LaPierre in the form of gifts from vendors, “out
of pocket” expenses originally paid for by Ackerman and then paid for by the
NRA, and other forms of compensation.
ii. In its Forms 990 for at least 2014 to 2018, the NRA failed to disclose taxable
personal income for LaPierre, Phillips, and Powell. For example, as set forth
above, LaPierre and Phillips permitted NRA executives and personnel to use
vendor credit cards, alter ego accounts, and vendor charges to disguise
payments to LaPierre, on LaPierre’s behalf, for LaPierre’s personal benefit, and
as reimbursements of LaPierre’s personal and family expenses, inconsistent
with the reporting requirements of Section 527 of the Internal Revenue Code.
iii. In its Forms 990 for the relevant time period, the NRA failed to disclose in
response to question 25a in Part IV of the IRS 990 for each relevant year that it
engaged in an excess benefit transaction with a disqualified person during the
year, and failed to file Form 4720 reporting such transactions pursuant to
Section 4958 of the Internal Revenue Code, which governs excise taxes for
excess benefit transactions.
iv. Until 2017, Defendant NRA failed to disclose payments made to a former NRA
president in the form of payments to Crow Shooting, an entity owned by the
former president. While these payments were disclosed in the NRA