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The second phase of\u00a0the trial in a civil lawsuit against<\/a>\u00a0the National Rifle Association began Monday in Manhattan, with New York Attorney General Letitia James seeking an independent monitor to oversee the powerful gun rights group\u2019s finances.<\/p>\n In addition, the Democrat wants\u00a0Wayne LaPierre<\/a>, the organization\u2019s former CEO, banned from returning to the NRA. She is also asking for other restrictions on John Frazer, the NRA\u2019s corporate secretary and former general counsel. James had previously asked that LaPierre be banned from holding leadership positions or collecting funds for charitable organizations conducting business in New York, but that is no longer the case.<\/p>\n In the trial\u2019s first phase, a jury in February found LaPierre misspent millions of dollars of NRA money to fund an\u00a0extravagant lifestyle<\/a>\u00a0that included exotic getaways and trips on private planes and superyachts.<\/p>\n Jurors also found the NRA failed to properly manage its assets, omitted or misrepresented information in its tax filings and violated whistleblower protections under New York law.<\/p>\n NRA lawyers argued Monday that an independent monitor isn\u2019t necessary because the organization is enhancing its internal oversight, including through annual audits, hiring a compliance officer, and disclosing to members how it spends on executive travel and other perks.<\/p>\n Jeffrey Tenenbaum, a lawyer testifying for the state as an expert in nonprofit law, acknowledged that the NRA had made some strides toward transparency \u2014 but said it had only done so in the wake of James\u2019 lawsuit. In lieu of an independent monitor, there\u2019s nothing guaranteeing the organization will continue to adhere to its reforms, he said.<\/p>\n Among other things, Tenenbaum said, the organization\u2019s policy manual is \u201ca dumpster fire.\u201d<\/p>\n The second phase of proceedings in Manhattan state court is a bench trial, meaning there is no jury and the judge will hand down the verdict. It is expected to last about two weeks.<\/p>\n Charles Cotton, an NRA board member and president, was the first witness to take the stand. He revealed that the organization did not have a succession plan in place when LaPierre announced his retirement in January, just before the start of the trial\u2019s first phase \u2014 suggesting his exit was hasty and not expected. Cotton rejected a state lawyer\u2019s suggestion that the NRA\u2019s \u201cold guard\u201d was standing in the way of reforming the organization. At the same time, he conceded it had not reprimanded or punished LaPierre for his spending.<\/p>\n LaPierre is not required to attend, according to his lawyer, but he was in the courtroom Monday.<\/p>\n The NRA, through its lawyer, called the request for a court-appointed monitor to oversee administration of the organization\u2019s charitable assets \u201cunwarranted.\u201d<\/p>\n William Brewer, a lawyer for the NRA, said Friday that the organization was the victim in the case and has since taken a \u201ccourse correction\u201d to make sure it is fully complaint with the state\u2019s nonprofit laws.<\/p>\n \u201cThe focal point for \u2018phase two\u2019 is the NYAG\u2019s burden to show that any violation of any law is \u2018continuing\u2019 and persistent at the NRA,\u201d he said in an email. \u201cThis is a burden the NYAG cannot meet.\u201d<\/p>\n Spokespersons for James declined to comment ahead of Monday\u2019s proceedings, as did a lawyer for LaPierre. An email also was sent to Frazer\u2019s lawyer.<\/p>\n Bob Barr, the organization\u2019s president and a former congressman, and Douglas Hamlin, the NRA\u2019s CEO, are among the current employees and board members also listed as potential witnesses, according to James\u2019 office.<\/p>\n The first phase of the trial cast a spotlight on the leadership, organizational culture and finances of the lobbying group, which was founded more than 150 years ago in New York City to promote rifle skills and grew into a political juggernaut that influenced federal law and presidential elections.<\/p>\n The jury ordered LaPierre to repay almost $4.4 million to the organization he led for three decades, while the NRA\u2019s retired finance chief,\u00a0Wilson \u201cWoody\u201d Phillips<\/a>, was ordered to pay back $2 million.<\/p>\n Last week, James\u2019 office announced details of a settlement it reached with Phillips.<\/p>\n Under the agreement, he agreed to be banned for 10 years from serving as a fiduciary of a not-for-profit organization in New York. He also agreed to attend training before returning to any such position.<\/p>\n The deal means Phillips, now retired, doesn\u2019t have to take part in the proceeding that started Monday, but he is still on the hook for $2 million in damages from the initial verdict.<\/p>\n<\/div>\n\n