Attorney General James Secures 10-Year Ban On Wayne LaPierre From NRA

 

After Years of Violations and Jury Verdict that the NRA Broke the Law, Court Determines Changes Needed to NRA Governance

New York Attorney General Letitia James secured a 10-year ban on former Executive Vice President Wayne LaPierre from the National Rifle Association (NRA), and a court direction that the Office of the Attorney General (OAG) and the NRA propose reforms to be enacted at the NRA following years of mismanagement. Potential reforms that New York State Supreme Court Judge Joel Cohen outlined as priorities include retaining a compliance consultant to work with NRA staff to ensure needed changes are enacted, as well as changing the internal Audit Committee, reducing the size of the Board, and easing access for candidates to stand for Board positions. 

This court decision follows a jury verdict in February that found that the NRA broke the law, retaliated against whistleblowers, and lied on its annual regulatory filings. The jury verdict also concluded that Wayne LaPierre caused the NRA $5.4 million in damages and ordered him to pay $4.3 million.

“The NRA and its senior leaders broke the law and funneled millions of dollars in cash and lavish perks to themselves, their families, and NRA insiders,” said Attorney General James. “The damages portion of the case we presented, as well as the earlier trial before the jury, demonstrated that the NRA had a stunning lack of accountability and its leaders engaged in illegality and self-dealing. As a result of this case, Wayne LaPierre will be banned from the NRA for 10 years for spearheading this fraud, and the court called for additional proposed reforms to the NRA. After years of corruption, the NRA and its senior leaders are finally being held accountable.”

As a result of this case brought by Attorney General James: 

• A jury found that the NRA and members of its senior leadership violated the law, 
• Wayne LaPierre was found to have caused the NRA $5.4 million in damages and must pay $4.3 million, and is banned from serving in a fiduciary the organization for 10 years,
• Former Chief Financial Officer (CFO) and Treasurer Wilson “Woody” Phillips is required to pay $2 million in damages and accepted a 10-year ban from New York’s not-for-profit industry.

In February, Attorney General James won the first stage of the trial when a jury found the NRA, LaPierre, former General Counsel and current Corporate Secretary John Frazer, and Phillips violated state laws. The jury found that the NRA failed to properly administer charitable funds and protect whistleblowers, and that LaPierre and Phillips caused the organization $7.4 million in monetary harm. Ahead of the second stage of the trial, the Office of the Attorney General (OAG) reached a settlement with Phillips that included a 10-year ban from serving as a fiduciary of a not-for-profit in New York. 

Attorney General James filed a lawsuit against the NRA and the other current and former senior officers in August 2020. In January 2021, the NRA filed for bankruptcy in an attempt to avoid accountability by trying to reorganize in Texas. In May 2021, a federal bankruptcy court in Texas rejected the NRA’s bankruptcy petition, stating, “that the NRA did not file the bankruptcy petition in good faith.” In September 2022, Judge Joel Cohen rejected another attempt by the NRA to challenge OAG’s claims and affirmed that Attorney General James can seek an independent monitor to ensure the proper administration of the NRA’s charitable assets. In December 2023, the New York State Supreme Court, Appellate Division, First Department affirmed that decision. In January 2024, a final effort to delay the trial was rejected by the Appellate Division, First Department.

On the eve of the first stage of the trial, Wayne LaPierre abruptly announced his retirement as Executive Vice President and CEO of the NRA, a role he held for more than 30 years. In addition, OAG reached a $100,000 settlement with the NRA’s former Executive Director of Operations and Chief of Staff Joshua Powell before the trial’s beginning. At the conclusion of the six-week trial, the jury found all the defendants liable for violating New York not-for-profit laws and determined the damages due to the NRA from LaPierre are $4.35 million and from Phillips are $2 million, which is not affected by his settlement with OAG.  

Canadian Man Pleads Guilty in Scheme to Steal Millions of Dollars from Bank Accounts of Thousands of Victims in the United States

 

A Canadian man pleaded guilty in federal court in Las Vegas to conspiracy to commit wire fraud and money laundering in connection with a scheme to steal millions of dollars from thousands of victims in the United States.

According to court documents, Poupak Jannissar, 52, of Quebec, Canada, operated and controlled sham companies that used fake checks and other fraudulent debits to steal from victims’ accounts at banks in the United States. The defendant and his co-conspirators used various names for the sham companies, including Computer Run, EBooks, Joreeb, Memo Storage, Our Online Backup, You Can Fax Too and Your E-Library. These companies pretended to sell various internet-based services for consumers, such as cloud storage, internet faxing and online books. However, the sham companies did not actually provide any real products or services. Instead, the sham companies served to conceal the theft of money from bank accounts by Jannissar and his co-conspirators.

According to court documents, Jannissar and his co-conspirators bought lists containing misappropriated personal information belonging to thousands of potential victims. Jannissar and his co-conspirators then falsely represented to banks and others that individual victims had authorized debits from their bank accounts. If the individual victims did not notice and dispute initial charges made by the sham companies, the sham companies would fraudulently debit bank accounts multiple times. Jannissar and his co-conspirators transferred money they stole to accounts in Canada.

Jannissar pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering in front of U.S. District Judge Andrew P. Gordon of the U.S. District Court for the District of Nevada.

Jannissar was arrested on Jan. 22, at the Fort Lauderdale–Hollywood International Airport in Florida based on a criminal complaint and arrest warrant issued in the District of Nevada by U.S. Magistrate Judge Brenda Weksler. He was subsequently indicted on the charges to which he pled guilty today.

“Through various sham entities, the defendant and his accomplices stole consumers’ hard-earned money directly from their bank accounts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will use all of the tools at its disposal to apprehend and prosecute criminals, whether located inside or outside the United States, who steal from Americans.”

“This guilty plea demonstrates our commitment to finding and prosecuting individuals who steal from consumers,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “Defrauding consumers and stealing their hard-earned dollars is a crime against the individuals but it also violates the trust we have in free commerce. With our law enforcement partners, we are committed to holding accountable those who violate federal law. We thank our partners for their investigative efforts to help bring justice for victims.”

“Mr. Jannisar and his co-conspirators used sham companies to steal from unknowing victims by accessing their bank accounts using personal identifiable information from illegally obtained lists, and sadly nothing more than a keystroke on a computer,” said Inspector in Charge Eric Shen of U.S. Postal Inspection Service Criminal Investigations (USPIS-CI). “His actions and those of his co-conspirators represent a crime of greed and opportunity but will not go unpunished thanks to the law enforcement community, who have dedicated their mission to uncovering and putting an end to devious schemes like these.”

"The defendant's guilty plea holds him accountable for perpetrating a fraudulent scheme that stole funds from thousands of victims' bank accounts,” said Special Agent in Charge Vincent R. Zehme of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) Chicago Regional Office. “The FDIC OIG continues to work closely with our law enforcement partners to pursue those who cause financial harm to consumers and threaten to undermine the integrity of our Nation's banking system."

Jannissar faces a maximum penalty of 20 years in prison per charge. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

USPIS-CI and FDIC OIG are investigating the case. U.S. Customs and Border Protection provided valuable assistance.

Senior Trial Attorney Daniel Zytnick of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Richard Anthony Lopez for the District of Nevada are prosecuting the case.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Consumer complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

Governor Hochul Announces $350 Million in Direct Financial Assistance to Low- and Moderate-Income Families Across New York

Governor Hochul: “We're all parents and we talk about intensely how we can put more money back in the pockets of New Yorkers. We're delivering $350 million in direct financial assistance to low- and moderate-income families statewide through the Child Tax Credit program. $350 million meaning one million New York families with children will be receiving a check in the mail by the end of August.”

Hochul: “Together we secured a $7 billion investment to overhaul our state's child care system and making child care more affordable. And just a couple weeks ago, we announced a new digital portal to make free and low cost child care available for eligible families online. Get this, and I hope you all heard this last week: for a family earning up to $108,000 – a family of four earning up to $108,000, their child care expenses will not cost more than $15 a week. The average cost is $350. That's real money back in New Yorkers pockets, and I'm really proud of that as well.”

So, this is something that I can relate to having been a mom. I'm still a mom. My kids still consider me their mom, which is great. They've despite growing up with a political mother since they were preschoolers, they've stuck with me. I appreciate that. And I'm a grandma, and I understand profoundly how hard it is for families, just trying to make it all work out. It's so hard. And every night, the parents sit at the dinner table and talk about the math, and I remember seeing the stack of bills keep getting higher, and how we're going to pay the property tax bill or our rent, and just the basic needs, right? And then, of course you think you're doing fine, and it's oh yeah, school is around the corner. They don't fit into anything from last year. We need all new sneakers, they need new backpacks, they need to do everything. And it's just so hard, and you know what? You can't hear those stories and not feel compelled to act.

And I want to acknowledge two individuals who've been at the forefront of trying to solve this affordability crisis here in our State of New York. We have with us the Majority Leader of the New York State Senate, Andrea Stewart-Cousins. I want to acknowledge her and her strong support for what we're talking about here today. Let's give her another round of applause. The Speaker of the New York State Assembly, Carl Heastie, who has been a great partner of mine as well. Let's give him a round of applause.

As I mentioned at the outset, New Yorkers are facing really serious financial pressures. And all I can do is look at the cost of the bills, right? The cost of groceries have gone up 23 percent in the last five years. Who doesn't have to buy groceries, right? Every family needs to buy groceries every single week.

Housing prices, if you're trying to buy a house, have gone up 17 percent the same time. Child care has gone up 20 percent. And I think it's not a newsflash that wages have not kept up with that, right? So, the strain on working families is too much, and we're losing some families who are going elsewhere where they don't have the same challenges. And that actually threatens New York State's long term viability. And that's why, since becoming Governor, making New York State more affordable has been one of my top priorities. And as I said, “I have great partners who have the same feeling of who we're fighting for and what we must do.”

We fought to raise the minimum wage, and for the first time in history, tie it to inflation. Now that was back when inflation wasn't even a big factor. Leaders, aren't we glad we did that for New Yorkers? We tied the cost of minimum wage to inflation. We doubled tuition assistance together. We held the line on income taxes. We negotiated a historic deal to build more affordable housing because nothing was being built driving up the prices everywhere. We also are protecting our renters.

And we talk about child care. Together we secured a $7 billion investment to overhaul our state's child care system and making child care more affordable. And just a couple weeks ago, we announced a new digital portal to make free and low cost child care available for eligible families online. Get this, and I hope you all heard this last week: for a family earning up to $108,000 – a family of four earning up to $108,000, their child care expenses will not cost more than $15 a week. The average cost is $350. That's real money back in New Yorkers pockets, and I'm really proud of that as well.

As I said, it doesn't happen without the partnership of the State Legislature, but we know our work is far from over. We have to figure out ways – we're constantly seeking ways to ease the burden on New Yorkers. And there's a lot of talk about it used to be the three men in the room, remember? During budget negotiations. Now you have the two women and the man. And we're all parents. We're all parents and we talk about intensely how we can put more money back in the pockets of New Yorkers.

And today we're going to announce one of the many ways we've done just that. And so, I'm announcing we're delivering $350 million in direct financial assistance to low- and moderate-income families statewide through the Child Tax Credit program. $350 million meaning one million New York families with children will be receiving a check in the mail by the end of August.

Now depending on your income and the size of the family, that will determine the amount. Some families will receive up to $330 per child. You have three children, that's $1,000 in your family, doubling the amount of assistance that they've received in the past. And can you imagine the timing of that? While you're out there doing that last minute school shopping. That's why we wanted to do this for New Yorkers. And the best part is New Yorkers don't have to do anything to receive this payment. No forms, no phone calls, no hoops to jump through. It's just going to come to them.

As I mentioned, back to school in September. Those costs add up a lot. What do I know about this? I checked. A backpack today costs around $30-40. Some kids want the fancy ones. Some of the lower end sneakers cost about $45. They go way up from there. Some kids need uniforms, a lunch box, notebooks, and pens. I'm having PTSD from buying all this. I used to go in that shopping cart and just pile it all in, pile it all in, and it just seemed unending.

And with this check, this is how parents will be able to cover the cost of back-to-school supplies and even some clothes in there. And that's why I'm so proud of this. And no other Governor and no other State Legislature in the history of this great state has distributed this much direct financial assistance to the degree we have to families in New York.

In the last two years alone, we provided over $2.6 billion in financial relief for families and helped homeowners with their bills. What we've done: we helped homeowners with their property tax bills, we had additional assistance from the Earned Income Tax Credit recipients and we even saved gas – the cost of buying gas at the pump for New Yorkers during the pandemic.

So, this all comes back to our collective commitment to support New York's working families, and this child tax credit program is a vital program offering support to families with kids. And I know this is going to make a real difference.

This is part of the cornerstone of our collective efforts to help families navigate the cost of living in New York. We're going to continue finding ways to drive the cost down. And I will also say this – what I realized when I became Governor, this tax credit was only available for families with kids aged four and up.

Any parents in this room? Yeah, I thought so. They're kind of expensive as newborns, aren't they? They outgrow everything in three months. The clothes say, ‘zero to three months,’ ‘three to six,’ ‘six to nine,’ because your babies are growing. And then they want to buy little sneakers, and they don't stay in those very long. And then all of a sudden the cost of formula – my gosh, formulas and diapers. I told my husband as soon as our kids are out of formula and diapers, we're going to be rich again. It was that much of a strain on us. I'd run out to BJ's, just fill up the shopping cart with everything I could buy as cheaply as I could. So, we said “no.” We're going to make that tax credit available from birth on upward and not just the age of four.

That's a huge change. So, we did that last year, so that means over 600,000 more children are covered with this from infants all the way on up to high school and that's one more way we're just making life a little bit easier.

But I know I threw a lot of numbers at you, but I wanted you to hear from a real person in a couple minutes – not that we're not all real people – a person who's living through this right now. A young woman, Lisa Chin, a mom from Westchester, Mount Vernon, who's going to tell her story in a few moments about what it's like with a 2.5-year-old daughter and a 2-month-old son. I think she came up here just to get a little break in the action. So, let her – Lisa, you can stay as long as you want here.

And this year, since we expanded the eligibility, her family received the tax credit for the very first time. And she's balancing life as a full-time mom, pursuing her own dreams, and she's finishing up her bachelor's degree at FIT, and she's one of the recipients of our Tuition Assistance Program.

So, with the state's support, she's just an example of the people that we care about, why we do what we do, and how we're helping, not just her future, but her children's future as well.

It's not just making life livable in New York, it's also making it affordable for every single family, and we won't stop fighting.

There's always ways that we can work together to alleviate that burden, and it would not have been possible, as I mentioned, without incredible partners in our State Legislature.

WILLIAMS' STATEMENT ON THE NOMINATION OF RANDY MASTRO AS CORPORATION COUNSEL

 

"Now that the administration has decided to ignore the laws it opposes and rewrite the rules that get in its way, the mayor has nominated a corporation counsel who will defend these and future tactics. Randy Mastro’s record does speak for itself, and what it says should cause New Yorkers great concern. Both the Council and our office made these concerns clear for months, and the administration stubbornly insisted upon this nomination. Despite the mayor’s recent power grab through charter revision, the Council still has to vote on this appointment, and I hope they use that power to reject it." 

Bronx Borough President Vanessa L. Gibson - Community Resources & Updates

 

Dear Neighbor,

 

Thank you for joining us for another week in review.

The week started off with us at A Night in Full Bloom, raising awareness of fibroids and their impact on women’s health. We are so grateful to have joined this incredible group of influential and inspiring women to share our stories and discuss work to educate and provide more outreach on fibroids.

Next up was NYCHA Family Day, where we came together with our local Tenants Association and their resident communities to show love and admiration for everything that they do. It was a day full of fun activities and recreation that showed forth the unity within our beloved communities.

Last, but certainly not least, we were at this year's Bronx Dominican Day Parade along the Grand Concourse and the Dominican Heritage Breakfast that kicked off the festivities. We're grateful for the vibrant energy and love from the community at the Dominican Day Parade and Dominican Heritage Breakfast in the Bronx, and we want to thank all of our colleagues in government who came out to show love and support to our Dominican communities.

We also want to thank everyone who has joined us for our Bronx Summer Concert Series! We kicked things off earlier this summer at the Bronx Night Market in Fordham Plaza, and we will be returning for a second round on Saturday, August 3rd, from 4pm to 10pm. We are traveling across the borough this summer visiting our local parks and providing free entertainment for our residents and families. Click here for a full listing of our summer concerts. 

If you have any questions or concerns, please do not hesitate to contact our office at 718-590-3500 or email us at webmail@bronxbp.nyc.gov.

In partnership,

Bronx Borough President Vanessa L. Gibson

IN THE COMMUNITY

Last week, we joined A Night in Full Bloom - raising awareness of fibroids and their impact on women’s health. We're so grateful to join this incredible group of influential and inspiring women to share our stories and discuss work to educate and provide more outreach on fibroids. A special thank you to our Hosts, Cynthia Bailey & Kym Lee, and our special guests, Kenya Gibson, Angela Yee, and Cara Maria. We are grateful to our Founder & CEO of USA Fibroids Clinic, Dr. Yan Katsnelson, for your commitment and leadership in creating important spaces to discuss fibroids and our collective work. Thanks to everyone who joined us from near and far for an inspiring night in full bloom.

Additionally, we had a great time with our residents and families at Moore Houses Family Day and 1010 East 178th Street Family Day. Thanks to our wonderful Tenants Associations for bringing fun activities and recreation to our communities by showing love to our NYCHA families. 

Lastly, were grateful for the vibrant energy and love from the community at the Dominican Day Parade and Dominican Heritage Breakfast in the Bronx! Thank you to my colleagues in government for all of your continued support for the diverse communities in our borough. Your spirit and culture light up our streets and hearts.

UPCOMING EVENTS

 

Founder Of “BitClout” Digital Asset Charged With Fraud In Connection With Sale Of “BitClout” Tokens

 

Nader Al-Naji Defrauded Investor of Approximately $3 Million

Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of NADER AL-NAJI, the founder and promoter of the “BitClout” token.  AL-NAJI was charged with defrauding a “BitClout” purchaser by making false and misleading representations disclaiming control over the use of the investment funds.  AL-NAJI was taken into custody on Saturday, July 27, 2024, and was presented yesterday before a U.S. Magistrate Judge in California. 

U.S. Attorney Damian Williams said: “BitClout may have been a new token, but Nader Al-Naji’s alleged fraud was nothing new.  He allegedly lied to get access to millions of dollars, then gave the money away to family and friends.  Today’s arrest signifies this Office’s commitment to holding to account people who use deception to enrich themselves.” 

FBI Acting Assistant Director in Charge Christie M. Curtis said: “Nader Al-Naji, founder of the BitClout protocol, allegedly lied to investors and misappropriated investments in the protocol for personal expenses and gifts.  Failing to properly disclose the use of invested funds disrupts the integrity vital to investing and can breed distrust for future opportunities.  The FBI does not tolerate individuals who use false promises and half-truths to exploit well-intended investors of their funds.

According to the allegations contained in the Complaint:[1]

AL-NAJI is the founder of BitClout, a social media and cryptocurrency trading platform that purportedly allowed users to purchase BitClout tokens using Bitcoin, ostensibly through a decentralized protocol without any centralized issuer, for the purpose of trading BitClout tokens in connection with the social media profiles of other BitClout users.

BitClout held itself out as a “cross between a financial app and a social app.”  Specifically, BitClout was touted as “a social network built from the ground up as its own custom blockchain.  It’s not a company, it has no employees—it’s just code and coins . . . . [W]e refer to BitClout as a ‘protocol’—it is ultimately nothing more than an open-source piece of code running on machines all over the world.  No company, just code and coins.”

In or about January 2021, AL-NAJI contacted representatives of a prospective investor (“Investor-1”) to discuss the BitClout project and provided Investor-1 with BitClout’s marketing material.  On or about January 18, 2021, AL-NAJI met with representatives of Investor-1 and stated, in substance and in part, his intent to use the Bitcoin raised from selling BitClout to develop the BitClout protocol.  As part of negotiations with Investor-1, AL-NAJI claimed, in substance, that the role played by his entity was merely to purchase BitClout tokens from the protocol, and that he did not have any control over the funds after the purchase was complete.

In fact, contrary to AL-NAJI’s representations to Investor-1, AL-NAJI did maintain control over the proceeds provided by Investor-1 and used them for, among other things, personal expenses and gifts to AL-NAJI’s family members.  After inducing Investor-1 to invest approximately $3 million, AL-NAJI routed the funds through multiple accounts for the ultimate benefit of himself and family members.

Al-NAJI, 32, of Los Angeles, California, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Williams praised the investigative work of the FBI and also thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendant, for its assistance in the investigation.     

The case is being overseen by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Sarah Mortazavi and Nicholas Folly are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.