For an organization as polarizing as the National Rifle Association (NRA), a robust compliance program can be the greatest line of defense when under regulatory scrutiny. In contrast, a disingenuous approach to compliance can be among such a firm’s greatest weaknesses, increasing the size of the target on its back.
That notion is expected to take center stage as dueling lawsuits filed by the NRA and the New York Attorney General’s office (NYAG) last week play out. In the lawsuit seeking to dissolve the NRA, NYAG Letitia James alleges that a “culture of noncompliance” allowed NRA Executive Vice President Wayne LaPierre and three other officers to steal $64 million from the organization over three years. Meanwhile, the NRA in its countersuit says it operates in “substantial compliance” with New York not-for-profit law andis the victim of a politically motivated attack.
