Pelican Institute reporter Steve Beatty has a new story demonstrating that hundreds of jobs allegedly “saved or created” in Louisiana may be incorrect or exaggerated:

The issue of phantom Congressional districts listed in the national stimulus database recently created a stir. But the tally of Louisiana jobs allegedly created or saved by President Obama’s signature domestic policy program raises more serious questions about this database.

A review of the self-reported information may inspire a chuckle or a sneer, particularly when less-than-savvy recipients of federal money don’t know what Congressional district they’re in, or that the state only has seven such districts. That unsophisticated approach made headlines when money was listed as being spent in various districts that just didn’t exist. In the end, though, those reports are likely to be modified and will land in the appropriate district.

A greater concern is the 475 jobs listed as created or saved in Louisiana, even though the related projects aren’t started. And the 171 jobs chalked up when small raises were given to Head Start workers. And the over 100 low-paying work-study jobs on college campuses that count just as much as, say, a full-time architect for a major building program. Other entries indicate what could be an under-reporting of jobs.

These are just some examples of questionable figures in the statewide data analyzed by The Pelican Institute for Public Policy.

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Story filed by the Pelican Institute’s Steve Beatty:

Amid the paperwork associated with a search warrant served on ACORN’s New Orleans headquarters Friday is a one-sentence acknowledgement by the embattled activist group’s attorneys that it is has been subpoenaed by a federal grand jury.

“Regarding the federal grand jury subpoenas, ACORN does not object to the provision of information and documents to the federal government…” reads a letter from Abbe David Lowell of the Washington law firm of McDermott, Will & Emery. 

The letter was included in court filings from ACORN explaining the legal basis for why they weren’t complying with a subpoena issued by Louisiana Attorney General Buddy Caldwell, which seeks a wide range of accounting information regarding the group’s many affiliated agencies. 

Lowell disclosed the federal investigation as he was writing to a New Orleans lawyer representing ACORN’s local outside accountants. The accounting firm of Duplantier, Hrapmann, Hogan & Maher was served with a subpoena from Caldwell, and, apparently, at least two from federal officials. In the letter, Lowell said ACORN was asserting accountant-client privilege, which is recognized in Louisiana, but not at the federal level.

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From Steve Beatty, Pelican Institute’s investigative reporter:

More than two years before an ersatz pimp and prostitute raised troubling questions about Acorn Housing Corp.’s financial advice, Louisiana officials criticized the organization’s bookkeeping as it denied the group tens of thousands of dollars from a potential $1.5 million state contract.

The office overseeing the contract recommended against rehiring Acorn Housing in part because it couldn’t document its work.  The contract was designed to inform low-income residents about the Road Home program and help them apply for post-hurricane benefits.

A much smaller $53,000 contract that Acorn Community Land Association had with the state attorney general’s office also was criticized for thin financial justification, though the group got its full payment and was recommended for future work. The contract was to tell hurricane victims of non-discriminatory housing policies as they sought temporary rentals.

In both contracts, the state files contain promotional materials extolling the virtues of paying for an ACORN membership – a solicitation expressly forbidden under the contracts.

“If you are not rich, you need to join your ACORN community group and work on the problems affecting you,” reads one flier in the attorney general’s file.

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From Steve Beatty, investigative reporter for the Pelican Institute:

The brother of ACORN’s founder embezzled $5 million from the organization, nearly five times more than the figure previously acknowledged by the New Orleans activist group’s officials, according to a subpoena served Monday by the Louisiana Attorney General’s Office.

“The exact amount of the embezzlement was unknown until it was recently acknowledged in a board of directors meeting on October 17, 2008 by (ACORN Chief Executive Officer) Bertha Lewis and (ACORN board member) Liz Wolf that an internal review had determined that the amount embezzled was $5,000,000,” reads the court document. “It is still unclear if some of the monies embezzled are from state, federal of private funds.”

ACORN 2nd Subpoena –

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From the Pelican Institute’s investigative reporter, Steve Beatty:

Despite landing $625,000 worth of work with the city of New Orleans to develop or repair housing for poor people, an offshoot of the activist group ACORN appears to have done nothing to fulfill the contract, no longer has the specified office in New Orleans and no longer employs the director who signed the contracts.

Acorn Housing Corp. has received no city money in connection with the two contracts, city spokeswoman Ceeon Quiett told WDSU-TV recently. Neither Quiett nor her representatives responded to requests from The Pelican Institute to address other questions about the contracts, one of which expired Aug. 31.

Those questions include:

• How did Acorn Housing get the contracts, through competitive bid or otherwise?
• Why did no one with the city monitor the contract to ensure the city got what it expected?
• Is the money still available to help low-income residents of New Orleans?
• Do city officials expect the current contract, which expires Jan. 31, to provide any services?
• Will Acorn Housing continue to be included on the city’s list of designated non-profit Community Housing Development Organizations?  

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