Unlike most nonreligious nonprofit associations, NAAG doesn't file financial reports with the Internal Revenue Service.

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"We don't go out and target an industry, " says Idaho Attorney General Lawrence Wasden, the past president of NAAG.

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Left unremarked upon was one of the largest beneficiaries of the settlement: NAAG.

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After a request from forbes, NAAG turned over three years' audited financials.

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Much of what NAAG and the AGs do is conducted in secret.

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Also within NAAG is something called the "milk fund" (named after a 1989 settlement of a school-milk case), where NAAG keeps money it gets from antitrust settlements.

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Lynch, president of NAAG, said Tuesday at the news conference.

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He says NAAG attorneys provided advice.

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Washington Attorney General Robert McKenna, cochairman of NAAG's Tobacco Committee, told the audience how an army of lawyers at NAAG and state AG offices keeps tabs on the tobacco industry, from monitoring sales to stepping in to halt taboo marketing tactics such as running cartoon ads in Rolling Stone.

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