Douglas Varley Speaks to Washington Post on NRA Lawsuit

The chief executive of the National Rifle Association and several top lieutenants engaged in a decades-long pattern of fraud to raid the coffers of the powerful gun rights group for personal gain, according to a lawsuit filed Thursday by the New York attorney general, draining $64 million from the nonprofit in just three years.

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“It is a watershed moment in nonprofit regulation,” said Douglas Varley, who advises nonprofit organizations at the law firm of Caplin & Drysdale.

With a decline in IRS funding and enforcement, there has been a widespread belief that “the locus of nonprofit enforcement is shifting from IRS to the states,” Varley said. “Here is the clearest possible evidence of that reality. I think everyone who believes a strong regulator is needed would heartened by this.”

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