New York, NY – The New York attorney general issued a subpoena to the National Rifle Association (NRA) seeking more information about the way money flowed between the NRA and its charitable foundation.
The investigation has been going on for eight months, according to The New York Times.
The newest subpoena covered areas such as campaign finance, payments made to board members, and tax compliance.
Documents sought by the subpoena included records of NRA-controlled entities such as the NRA Foundation, The New York Times reported.
Recent tax filings showed that $36 million was diverted from the foundation to the NRA in 2018, which raised concerns among tax experts.
The New York Times did an analysis and found that the NRA Foundation had transferred more than $200 million of the funds it raised to the NRA between 2010 and 2017.
Both the NRA and its foundation are tax-exempt organizations, but only foundation contributions are tax-deductible.
Tax experts have expressed concern that the NRA Foundation has become a back door way for people to make tax-deductible donations to the NRA, the New York Times reported.
The subpoena sought documents involving internal communications about NRA filings to the Federal Election Commission and communications with two political consulting firms who worked for the NRA.
Court records showed that it appeared the NRA had run several million dollars’ worth of expenses through their consulting advertising firm, Ackerman McQueen, The New York Times reported.
The NRA has blamed Ackerman McQueen for overbilling and accused them of fraud, and claimed the discovery of the discrepancies was discovered during an internal audit last year.
Prosecutors are also looking for information on hiring decisions and the salaries paid to the 76 members of the NRA’s Board of Directors, according to The New York Times.
In one questionable example, the NRA paid actor and long-time board member Tom Selleck $476,000 for collectible guns they planned to use for fundraising.
The New York Attorney General’s Office and the NRA refused to comment for the New York Times story.