New York Daily News

NRA charged over alleged finance scam

- BY DENIS SLATTERY

ALBANY — The New York State Department of Financial Services filed civil charges Wednesday against the National Rifle Associatio­n, accusing the gun lobbying group of acting as an unlicensed insurance producer and engaging in misleading marketing practices.

The state previously fined insurance broker Lockton Cos. LLC $7 million for underwriti­ng an NRA-branded insurance program called Carry Guard, which prompted the group to file a lawsuit in 2018 against Gov. Cuomo and other state officials.

The new charges accuse the NRA of working with Lockton to sell insurance to gun owners and their families that would cover losses and costs associated with the aftermath of the purposeful use of a firearm, including defense costs in a criminal prosecutio­n. Under New York law, such acts cannot be insured.

The NRA also misreprese­nted to its members that the products were being sold at the lowest possible cost. According to the department, the group kept “substantia­l” royalties, sometimes exceeding 20% of premiums paid.

The allegation­s, which date all the way back to 2000, include claims that the group has been offering an assortment of insurance for decades.

“For example, the charges allege that the NRA participat­ed in offering its members insurance products involving coverage for firearms instructor­s, gun collectors, gun clubs, gun shows, federal firearms dealers, and other aspects involving firearms, as well as life, health, and property offerings for their members,” the state regulators said in a statement.

The state is seeking upwards of $14 million in civil fines and other remedies, and scheduled an April 6 hearing at its office.

Last year, NRA head Wayne LaPierre issued a stark warning to supporters that the group was under siege and could be forced to shut down due to financial woes associated with investigat­ions in New York — a sentiment then echoed by President Trump.

In addition to this investigat­ion, Attorney General Letitia James is probing the group’s finances and nonprofit status.

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