Aug. 13, 2019 12:35 pm ET
A top National Rifle Association executive signed a document agreeing that the gun-rights organization would be 99% owner of a company formed to buy a $6 million Dallas mansion for NRA CEO Wayne LaPierre, according to a copy of the document reviewed by The Wall Street Journal.
The document also shows the NRA agreed to contribute $6.5 million to the company formed to buy the property, raising yet more questions about the NRA’s previous statements that none of the gun-rights group’s money was to be used to purchase the house for Mr. LaPierre.
The house-purchase deal never happened, but conflicting explanations from the NRA and its former ad agency for the aborted transaction have renewed the focus on Mr. LaPierre’s financial dealings with the agency, Ackerman McQueen Inc.
The NRA and Ackerman McQueen agree that the plan to buy the Dallas property started early last year, when Mr. LaPierre had concerns about his safety in the wake of the February 2018 mass shooting at a high school in Parkland, Fla.
Mr. LaPierre and his wife, Susan, twice toured the 10,000-square-foot house, in a gated golf community near Dallas, according to people familiar with the matter.
Ackerman McQueen, which at the time had a close relationship with the NRA dating back more than 30 years, agreed to help facilitate the transaction and to manage the property after closing, these people said.
When the Journal reported the aborted house deal last week, the NRA said the house was to have been purchased by a company owned by senior Ackerman executives, and Mr. LaPierre shut down the transaction after discovering that the ad agency intended to use NRA funds for the deal. “Not a cent of NRA money was ultimately spent,” an outside NRA attorney, William A. Brewer III, said then.
The Wall Street Journal reported Monday that the NRA sent a $70,000 check in May 2018 to a company formed to buy the house, WBB Investments LLC. WBB Investments, set up in Delaware by an Ackerman attorney, returned the money the following month, but the NRA check was the most tangible sign of money flow in the proposed deal.
The newly revealed document reviewed by the Journal was dated at the time of WBB Investments’ formation in May 2018, and was signed by Wilson H. Phillips Jr., the NRA’s then-chief financial officer and treasurer. In it, he agreed that the NRA would contribute $6.5 million for 99% ownership of WBB Investments, while an Ackerman entity would contribute $10 for 1% ownership.
In a statement, NRA spokesman Andrew Arulanandam said: “As we have said repeatedly, neither Mr. LaPierre nor the Board ever formally considered, much less approved, an investment in the house in question or the other properties shown by Ackerman McQueen’s real estate agent.”
The NRA didn’t provide a detailed response to questions about the document’s terms or its former CFO’s signature on it. Mr. Phillips couldn’t be reached for comment.
Mr. LaPierre previously has fended off boardroom dissent over earlier revelations about more than $540,000 of clothing and travel expenses that Ackerman picked up for the NRA chief. The NRA has said the costs were justified for business reasons.
The NRA ended its contract with Ackerman earlier this year, and the two organizations are embroiled in litigation.
Ackerman recently turned over documents related to the proposed house purchase to the New York attorney general’s office, which is probing Mr. LaPierre’s dealings with the agency as part of a broad investigation of the NRA.
Write to Mark Maremont at
mark.maremont@wsj.com
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