Exclusives

Frank Gaffney

Shariah Finance, Criminal Wrongdoing in the AIG Takeover: Will the Special Inspector General for the TARP Funds Investigate the Illegal Trust?

by Frank Gaffney

Yesterday we broke the story of possible criminal wrongdoing in regards to the bailout of AIG by Treasury Secretary Tim Geithner, then Director of the New York Federal Reserve, and Federal Reserve Chairman Ben Bernanke.

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It appears that, through it’s 77.9% control of AIG’s equity and voting rights, the NYFed “sought to accomplish an illegal financial transaction through false means” by creating an “independent”: trust that was in fact not independent, placing it “in violation of federal anti-money laundering statutes (18 USC § 1956).” Here we elaborate a bit further, laying out the issue in the text of a letter submitted to Neil Barofsky, Special Inspector General for TARP (SIGTARP)– as the government takeover of AIG was accomplished using funds provided to the Troubled Asset Relief Program.

First, however, some context: Crucially, these facts were discovered while securities litigator David Yerushalmi and the Thomas More Law Center was representing Iraq War vet Kevin Murray in Murray vs. Geithner, et al. Mr. Murray is rightfully horrified that the very doctrines of the enemy he faced in combat would be promoted by the US government. Specifically, prior to the U.S. government’s takeover of the insurance giant AIG, the company was the world’s leading promoter of Shariah-compliant finance products and businesses. Bailing out and forcefully (and illegally) taking ownership of AIG put the American taxpayer in the position of advocating Shariah-compliant finance, which is troubling on many levels:

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Mike LaChance

The People of Massachusetts Are Taking Back Their Seats

by Mike LaChance

The Scott Brown revolution is alive and well in Massachusetts.

Tuesday night, January 26th at 7:00 when most people would like to be home relaxing after work, almost 500 average citizens from Massachusetts packed a convention hall in the Boston suburb of Braintree. They shared some common interests. They’re either running for office or helping someone else run for office. Some of them are running for federal or state offices, some for seats in local towns and cities and some for school boards. The one sentiment they share is clear: They’ve had enough.

The CrowdA capacity crowd!

The event they showed up for was a “candidate school” offered by Boston talk radio host Michael Graham of 96.9 WTKK, a man the Boston Phoenix dubbed “Boston’s maestro of conservative controversies.” In between his tenure at WTKK and a career in stand-up comedy, Graham ran political campaigns. Today, he is sharing his knowledge with the citizens of the Bay State and encouraging them to participate in the system.

Attendees included people like Francis McLaughlin, a retired Boston fire fighter and registered Republican since 1975. McLaughlin is running for the Massachusetts House of Representatives for specific reasons:

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Publius

Lech Walesa Endorses Republican for Illinois Governor

by Publius

In an exclusive, Big Government has obtained a letter addressed by Nobel Prize Winner and anti-Communist hero Lech Walesa to the people of Illinois, endorsing Adam Andrzejewski, Republican candidate for Governor.


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Publius

EXCLUSIVE INTERVIEW: Military Blogger Michael Yon Detained, Handcuffed by CBP in Seattle Airport

by Publius

Corrected: The federal enforcement agency involved in the incident with Mr. Yon at Sea-Tac was previously misidentified as the Transportation Security Administration (TSA).  The article has been updated to reflect that it was Customs and Border Protection (CBP) agents who questioned and detained Mr. Yon.

Award winning war correspondent Michael Yon was detained and handcuffed at Seattle-Tacoma International Airport Yesterday by Customs and Border Protection (CBP) personnel.

Yon was returning to the United States from Hong Kong to visit family when CBP officials stopped him during a routine security checkpoint.  “Officials asked me what was in my bag—nothing wrong with this question,” Yon said in an interview with BigGovernment.com.  “I told them it was normal stuff, clothes and toothbrushes.”

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At this point the Customs officials escorted Yon to a designated screening area where they examined the contents of his bag.  “Then they asked me how much money I make,” Yon said.  Yon suggested to the Customs officials that the question was inappropriate and unrelated to transportation security.  The award-winning blogger noted another CBP officer approached Yon: “he asked who do I work for.”  ”I did not answer the question which clearly was upsetting to the [CBP] officers.”

Yon was escorted to a room elsewhere in the airport where he said he remained silent during much of the questioning.   According to Yon, “they handcuffed me for failing to cooperate.  They said I was impeding their ability to do their job.”

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Larry  O'Connor

Exclusive Audio: Was Bomber Ushered on to Flight 253 Without Papers?

by Larry O'Connor

Earlier today, while guest hosting on The Dennis Miller Show, Andrew Breitbart interviewed Kurt Haskell from Taylor, Michigan.  Mr. Haskell was a passenger on the now infamous Flight 253 on Christmas day from Amsterdam to Detroit.  We all know now how this flight ended (with the Flying Dutchman careening across multiple seats to stop a would-be-suicide bomber from exploding the plane and hundreds of innocent lives).  But, Mr. Haskell shared his story of what he witnessed before anyone even boarded the plane.

While waiting in the holding area in the Amsterdam airport, in a room designated for only the passengers of Flight 253, Mr. Haskell saw a well-dressed man of apparent Indian descent accompany a young, poorly attired man of African descent to the boarding gate.  What Mr. Haskell saw and heard next is of seemingly great significance:

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

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Capitol  Confidential

EXCLUSIVE: Transvestites, Mao And Obama Ornaments Decorate White House Christmas Tree

by Capitol Confidential

Why let a holiday season come between the White House and making some political statements? The White House pegged controversial designer Simon Doonan to oversee the Christmas decorations for the White House. Mr. Doonan, who is creative director of Barney’s New York has often caused a stir with his design choices. Like his naughty yuletide window display of Margaret Thatcher as a dowdy dominatrix and Dan Quayle as a ventriloquist’s dummy. For this year’s White House, he didn’t disappoint.

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These photos of ornaments on the White House Christmas tree in the Blue Room were taken just days ago. Of course, Mao has his place in the White House.

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Mike Flynn

UN Security Stops Journalist’s Questions About ClimateGate

by Mike Flynn

A Stanford Professor has used United Nation security officers to silence a journalist asking him “inconvenient questions”  during a press briefing at the climate change conference in Copenhagen.

Professor Stephen Schneider’s assistant requested armed UN security officers who held film maker Phelim McAleer, ordered him to stop filming and prevented further questioning after the press conference where the Stanford academic was launching a book.

McAleer, a veteran journalist and film maker, has recently made a documentary “Not Evil Just Wrong’ which takes a sceptical look at the science and politics behind Global Warming concerns.

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Kyle Olson

Exclusive: Ex-Convict Bob Creamer Laid Out Health Care Reform Plan In 2008 Speech

by Kyle Olson

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ACORNcracked.com recently obtained an audio recording a speech by Robert Creamer, given at the Take Back America 2008 conference in Washington, DC, that was hosted by Campaign for America’s Future, an ultra-liberal organization.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

In a March 19 session entitled, “Health Care: The Politics of Winning,” ex-convict Creamer and husband of Congresswoman Jan Schakowsky (D-IL), laid out his vision for health care reform.  Of Creamer’s 10-point plan, number 5 is:

To have a movement that both deals with that fact [that health care reform should be personal] and creates a movement we have to have two elements.  In a lot of campaigns we run are either about a populist kind of message and feel because it’s about people’s pocketbooks and needs directly.  Or it has a moral dimension that is inspirational and empowering – the civil rights movement, for instance.

This movement needs to have both.  To have a movement, to mobilize people, to inspire people, you have to appeal to their sense of meaning and purpose and something important.  So we have to create a sense that this is a historic battle. This is about you’re being part of something that will make you meaningful. (emphasis added)

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Joel B. Pollak

Was Democrats’ Health Care Strategy Written In Federal Prison?

by Joel B. Pollak

On August 31, I headed to the health care town hall meeting of my congressional representative, Jan Schakowsky (D-IL). I suspected that she planned to stack the meeting with paid organizers, after she vowed on Real Time with Bill Maher to bring “millions” of people into the streets to support the so-called “public option.” So I brought a video camera.

A friend and I took turns filming protesters on both sides of the issue. We caught an organizer from the group Health Care for America Now (HCAN) instructing followers to block dissenting views: “So if they stand up and start asking questions, and you’re in that area, simply stand up, and start chanting… ‘Health care now! Health care now!’”

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Washington News Observer

Ann Coulter – Part 2 – On Fort Hood, Single Mothers, And Protected Groups

by Washington News Observer

Washington News Observer recently sat down for an exclusive interview with acclaimed author and commentator Ann Coulter. In the second part of the interview, Ann Coulter  discusses the “victimization” of single mothers and minorities, the Fort Hood massacre and other hot topics. Coulter is the author of seven New York Times bestsellers. This interview is the final segment of a two part series. If you missed the first part, it is available HERE.

Washington News Observer

Exclusive: Ann Coulter on Obama, Terrorism and Afghanistan.

by Washington News Observer

Washington News Observer recently sat down for an exclusive interview with acclaimed author and commentator Ann Coulter. As always, Ann Coulter is blunt about her opinions of President Obama and the War on Terror.  Ann Coulter is the author of seven New York Times bestsellers. This interview is part one of a two part series.

Derrick Roach

BREAKING: San Diego ACORN Document Dump Scandal

by Derrick Roach

On October 1st, 2009 California Attorney General Jerry Brown announced that an investigation had been opened into ACORN’s activities in California, resulting from undercover videos showing employees seemingly offering to assist the undercover film makers with human smuggling, child prostitution and even tax advice to boot.

Although ACORN has denied any wrongdoing, some of the employees involved were terminated, and ACORN has publicly stated that they would fully cooperate with any investigations that followed.

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Interestingly, the local head ACORN organizer in California, David Lagstein was caught on tape earlier this month speaking to an East County Democratic Club.

Mr. Lagstein stated: “…the attorney general is a political animal, but certainly every bit of the communication we have had with them has suggested that the fault will be found with the people that did the video and not the people with ACORN.”

Continuing, Mr. Lagstein stated: “…we are fully cooperating, some of the investigators visited our office this morning and I think they really understand what’s going on.”

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Sue Lowden

Conservative Principles Will Defeat Harry Reid

by Sue Lowden

Ronald Reagan once quipped that when you start referring to government as “we” instead of “they,” you have been in office too long. Not only is Senator Harry Reid referring to his liberal majority in Washington as “we,” he complains to reporters about the “smell” of American taxpayers when they visit our nation’s Capitol. Harry Reid has been in Washington far too long.

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While families struggle in the face of rising unemployment, the housing crisis, and falling income, Harry Reid has chosen to carry out the bidding of Washington’s special interests and his party’s extreme liberal base. He has proven to be completely out-of-touch with overburdened taxpayers in my home state of Nevada. Currently, Nevada leads the nation in home foreclosures and we are second in the nation in unemployment. And despite Harry’s promises, Nevadans continue to lose their jobs and homes.

In 2004, voters held another out-of-touch Senate Democrat Leader accountable for failing the American people and his constituents. It took the right leadership, conservative principles and the support of conservatives from across the nation to defeat Tom Daschle.  Now we have the chance to do it again.

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Capitol  Confidential

Exclusive: Police Report on Gladney Beating by SEIU Thugs

by Capitol Confidential

It has been more than three months since Kenneth Gladney was viciously attacked by SEIU employees. The assault wasn’t an accident, but a deliberate attempt to intimidate and silence tea party activists and town hall protesters. The morning of the Gladney assault, the White House presented to Senate Democrats a ‘battle plan’ to quell the protests. The White House advised Democrats “punch back twice as hard.” Gladney was the first casualty.

The Gladney beating took place at a forum on ‘Aging’, sponsored by Rep. Russ Carnahan. Carnahan had been caught flat-footed by earlier protests. This time he was more prepared; the day before the forum, Sara Howard took over as his communications director. Ms. Howard is a veteran leftist activist, holding senior positions with SEIU.

SEIU and partisan hacks like Media Matters have tried to spin away the Gladney beating. They would have you believe a 130 lb diabetic, recovering luekemia patient, picked a fight with men almost twice his size. The police report puts an end to that lie.



GLADNEY PART 2.1


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Publius

Exclusive Poll of Likely Voters: Strong Opposition to Health Reform Plans

by Publius

A new Fabrizio McLaughlin national poll of likely voters finds the public strongly resistant to the health care proposals currently under consideration in Congress. The poll also finds that health care isn’t the top issue on likely voters minds, despite the wall-to-wall news coverage of the debate over the last several weeks. The economy or jobs were the top issue of 50% of likely voters. More troubling for supporters of Congressional health care legislation, is the finding that, the more likely voters learn about the proposals, their opposition to the legislation is overwhelming.

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As reported earlier, the poll began with the same question tested earlier by the Washington Post. Even with this neutral phrasing, likely voters were opposed 48-45%. As the questions became more detailed, however, opposition grew and any support collapsed. Below are the detailed questions and results. These should give serious pause to ObamaCare proponents pushing for quick legislation action.

Based on what know, do you favor or oppose a “public option” health insurance plan?  (Asked only of those who were aware of the debate over a public option.)

Total Favor      39%

Total Oppose   53% 

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Washington News Observer

Exclusive: Rep. Michele Bachmann On Health Care

by Washington News Observer

Yesterday, Big Government contributor Washington News Observer sat down with Rep. Michele Bachmann to discuss the latest twist and turns in the health care debate. Rep. Bachmann has taken the lead in calling for citizens concerned about a government take over of health care to rally at the U.S. Capitol on Thursday, November 5th and make “house calls” on their members of Congress. Info on that event can be found here.  


Publius

Exclusive: New Poll Finds 59% of Likely Voters Say Nation Is on the Wrong Track

by Publius

As voters in several states go to the polls today, a new Fabrizio McLaughlin national poll of likely voters finds treacherous ground for incumbents. 59% of voters feel the nation has “gotten off on the wrong track.” (Only 31% felt the country was heading in the right direction.) The GOP leads the generic ballot test for both House and Senate by seven points (42-35 in both) Republicans in Congress, though, have slightly lower approval ratings than Democrats. The findings show more a shift away from Democrats than a move towards the GOP.

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When asked to name their top issue, 50% of likely voters names the economy or employment/jobs. Health care was the top issue for 27% while 13% listed government spending and deficits.

Likely voters split on both their personal opinion of President Obama and his job performance. 41% of likely voters had a favorable opinion of President Obama and the same number had an unfavorable opinion. 48% approved of his job performance and the same number disapproved. 38% approved the job Democrats were doing in Congress (57% disapproved) while only 33% approved of the job Republicans were doing in Congress (58% disapproved).

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Washington News Observer

Exclusive: Interview with GOP Leader John Boehner, Discusses Health Care, Afghanistan, And Elections

by Washington News Observer

[Editor: Big Government's news partner, Washington News Observer, caught up yesterday with GOP Leader John Boehner. We welcome WNO to the Big Government team and look forward to future news reports and interviews.]


Capitol  Confidential

Exclusive: NUTBUSTERZ Launched To Expose Working Families Party/ACORN Scam

by Capitol Confidential

A new citizen action group is committed to exposing the danger that ACORN and the Working Family Party poses to our democracy based on their record of subverting elections through voter fraud, falsifying petitions and engaging in absentee ballot fraud for favored candidacies, looting government housing programs, blackmailing corporations and cheating the public campaign finance system.

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Nutbusterz will serve serve as a clearinghouse for media coverage of the illegal activities of ACORN. Media reports on ACORN and the New York Working Families Party (WFP) will be updated daily. Candidates and causes that ally themselves with ACORN will be exposed and held to account.

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Charles Gasparino

Exclusive Book Excerpt: Fannie and Freddie’s Starring Role in the Housing Debacle

by Charles Gasparino

Despite the few voices of caution, risk and leverage had become a national fixation, embraced both on Wall Street and in government. The SEC and the Fed, the main regulators in charge of monitoring the buildup of risky assets on the banks’ books, together with the rating agencies, were the modern-day equivalents of Nero fiddling as Rome burned.The fire in this case was the massive and rapid buildup of mortgage debt on the balance sheets of the banks; by 2006 it was approaching $1 trillion and heading higher without so much as a peep from the traditional watchdogs.

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Still, the risk taking and leverage went beyond the brokerage houses and the banks. The GSEs, Fannie Mae and Freddie Mac, were in the game as well. By now, Fannie and Freddie had fully and completely conceded their original mandates to the whims of the Washington political class, which demanded “affordable” housing for all, even those who couldn’t afford it. The politicians were giddy with Fannie and Freddie’s conversion from staid mortgage banks to subprime lenders that would make Angelo Mozilo, the CEO of the largest subprime lender in the markets, Countrywide Financial, envious.

It was an evolution that took years in the making. As HUD secretary, Andrew Cuomo boasted in one report in the late 1990s that the new mandates he was imposing on Fannie and Freddie to ramp up subprime lending “could be of significant benefit to lower-income families, minorities, and families living in underserved areas.”

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Capitol  Confidential

HHS Chief Actuary on ObamaCare: Total Health Care Spending Will Go Up, Not Down

by Capitol Confidential

Richard Foster, Chief Actuary for the Department of Health and Human Services’ Centers for Medicare and Medicaid Services, released this week to several Congressional offices a financial analysis of HR 3200, the House version of ObamaCare. He reached some inconvenient conclusions for President Obama and Congressional Leadership:

-“Total national health expenditures under this bill would increase by an estimated 2.7 percent in 2019…”

 -“The additional demand for health services could be difficult to meet initially with existing health provider resources and could lead to price increases, cost-shifting, and/or changes in providers’ willingness to treat patients with low-reimbursement health coverage.”

-More than half of the expansion in coverage (18 million out of 34 million) would be from increased Medicaid coverage.

-12 million people would lose employer-sponsored coverage.

-The productivity adjustments to Medicare are “unrealistic” and providers “might end their participation” because the cuts would make serving Medicare beneficiaries unprofitable.

-Medicare Advantage enrollment would decrease by 64 percent (from a projected level of 13.2 million to 4.7 million under the proposal).

As of today, HHS still hadn’t published the analysis on their website, even though it was written by its own staff. We have a feeling it may never find a home there. So, we’ve brought it to you directly. Full financial analysis below.  

 


CMS OACT – Memo on Financial Impact of H R 3200 09-10-21

Capitol  Confidential

Florida Journalist Speaks His Own ‘Truth’ to Those Out of Power

by Capitol Confidential

Some items need little comment. The email below, from a reporter of the Key News in Florida, speaks volumes about the mainstream media’s outlook on the political issues of the day. It is hard to know where to begin in dissecting this e-mail. Our personal favorite is the sense that, because Obama’s policies are so “needed” by the country, we can’t possibly brook any dissent. Journalists have been laid-off across the country, because of the media’s broken business model. Surely, the Key News can recruit a less-biased reporter. We have reached out to Mr. Guerra for his version of events. No comment yet, but we will keep you posted if we hear anything.

Click “full screen” to view larger image.



Doug Hoffman

Exclusive: Why I am Running, Doug Hoffman, Candidate for Congress in New York

by Doug Hoffman

I did not make the decision to run for Congress lightly. I have never aspired to be a politician, but seeing the direction our country was heading, I had to act. I believe in the bedrock principles that have made our nation great; limited government, individual liberty and personal responsibility.  I also think the public is more receptive to that message than ever before. The tea party and townhall movements have awakened the public and reconnected Independents, Democrats and Republicans to the ideals that made our nation, in the words of Ronald Reagan, “the shining city on the hill.”

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Unfortunately, some individuals in the GOP leadership forgot their principles and misread the public sentiment. They orchestrated the nomination of a far-left candidate as the Republican nominee. Rather than compromise the principles I believe, I proudly threw my hat in the ring as the Conservative Party candidate.

The GOP candidate, Dede Scozzafava, has voted for taxpayer funded abortions, higher taxes, more government spending and has regularly sought the support of ACORN’s Working Families Party.  She loudly voiced support for the stimulus bill that has increased our national debt but has failed to improve the economy. She is a vocal supporter of legislation that would force many workers into unions. She is an Olympia Snowe Republican willing to sell out her party and GOP principles of limited government, lower taxes, and more individual liberty.  These are principles I hold strongly.

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Matthew Vadum

ACORN Plans Massive Layoffs

by Matthew Vadum

A credible source claims the embattled left-wing advocacy group ACORN is poised to announce massive staff layoffs but an ACORN spokesman denies this is the case.

A credible source close to the Association of Community Organizations for Reform Now revealed that the activist network intends to lay off all staff members operating out of its New Orleans headquarters. All information provided by the source to this reporter in the past has turned out to be correct.

 

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However, ACORN spokesman Scott Levenson of the public relations firm The Advance Group in New York City said the source was incorrect.

In an interview Friday afternoon with Levenson said (referring to BigGovernment.com), “You guys just can’t get it right. You’re wrong again.”

When pressed to elaborate, Levenson declined to do so.

Levenson received media attention earlier this year when Fox News host Glenn Beck ejected the combative publicist from his studio during a commercial break. Beck said at the time that Levenson accused him of being a racist.

My source said that one of the employees to be cashiered in the Crescent City is the daughter of disgraced ACORN founder Wade Rathke. Rathke’s wife, Beth Butler, also works for ACORN but it is unclear at this point if she too will be laid off. Rathke’s son also reportedly is employed by ACORN. (more…)

Matthew Vadum

EXCLUSIVE: ACORN Legal Memo Confirms Depths of Troubles

by Matthew Vadum

“But whether you try to implement some or all of these recommendations, there must be someone committed to follow-up. There must be a review mechanism, and a means of holding people accountable after any final decisions are made. If you do not make some hard choices now and ensure they are carried out, they almost certainly will be made for you.”

–Elizabeth Kingsley of Harmon, Curran, Spielberg Eisenberg LLP, in a prophetic legal memo to ACORN dated June 19, 2008, the day before ACORN’s national board ousted ACORN founder organizer Wade Rathke

 
 

 

ACORN’s lawyer warned ACORN 15 months ago to begin fixing its massive internal problems or face certain catastrophe. It chose to do nothing.

The advice from Elizabeth Kingsley of Harmon, Curran, Spielberg Eisenberg LLP came in the form of an eerily prophetic legal memo to ACORN dated June 19, 2008, the day before ACORN’s national board fired disgraced founder Wade Rathke.


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The memo is a kind of Holy Grail for ACORN researchers. One source of mine keeps a copy in a safety deposit box. I’ve lost track of how many people have asked me over the last year if I knew how to get ahold of it. One source told me that there are many people who would “kill” to gain possession of it. This is a bit of an exaggeration perhaps, but not much. (more…)

Capitol  Confidential

Exclusive: FEMA Awards Fire Prevention Grant to ACORN

by Capitol Confidential

Just a few weeks ago, on September 4th, FEMA handed over $1 million to the ACORN Institute, an ACORN affiliate in New Orleans. The grant is for “fire prevention.” You can find the grant here. Virtually every other organization receiving “fire prevention” grants is a fire deparment or medical facility.

Here’s some background on ACORN Institute:

An affiliate of ACORN, the ACORN Institute, has been a participant in the IRS tax assistance program. The institute prides itself as a one-stop shopping service for low-income households seeking free benefits. In addition to tax preparation, it also provides information on how to secure government aid and to prevent mortgage foreclosure. Among the ACORN Institute’s partners are Citigroup, H&R Block and the Marguerite Casey Foundation. If even many Democrats in Congress are embarrassed by their history of support for ACORN, surely these entities can be as well.

Unclear what any of that has to do with “fire prevention.” According to FEMA, anyone with questions about the grants is urged to contact them at 1-866-274-0960, or via email at firegrants@dhs.gov.

Rusty Shackleford

‘Pioneer of Guerrilla Marketing,’ Specialist in ‘Leveraging’ Arts Community for Health Care Issues Coincidentally in on NEA Conference Call

by Rusty Shackleford

The NEA apology from the White House is laughable, at best.  Again, if this was just all a big misunderstanding then why was a representative from one of the country’s largest political advertising firms involved?  And pushing the health care agenda on company time?

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I believe the following information might help explain Bim Ayandele’s involvement.  Not only did he help set up the Office of Public Engagement, but before joining a division of one of the largest PR firms in the world — which specializes in “grassroots organization”, “issues management” and “crisis communications” — Ayandele:

served as the Director of Cures Now, a Los Angeles based non-profit organization leveraging a coalition of actors, directors, producers, musicians, and writers to promote the rapid, responsible and ethical advancement of science-related social issues, such as stem-cell research and diabetes awareness.

It seems Mr. Ayandele’s expertise is in “leveraging” the entertainment industry to “promote” health care related issues. A skill which would have been useful should, say, the White House or another interested third party wish to get NEA grant recipients to push President Obama’s health care agenda.

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Matthew Vadum

Breaking (**Final Update**): Hill’s Leading Nonprofit Watchdog Sen. Charles Grassley Demands ACORN Probe

by Matthew Vadum

FINAL UPDATE 9/24/2009 6:50 PM Eastern time

The senior Republican on the Senate Finance Committee, Sen. Charles Grassley (R-Iowa), asked the IRS to probe ACORN – and asked that ACORN be dropped from the Combined Federal Campaign, a charitable program for government workers.

Grassley, long known as Capitol Hill’s foremost policeman of the nonprofit community, is expected to make his formal announcement this evening. In a letter the senator indicated he has been concerned about ACORN since at least 2006.

Grassley sent a letter to IRS Commissioner Douglas H. Shulman earlier today and a separate, shorter letter to John Berry, Director of the U.S. Office of Personnel Management. Both letters are available here.

In the letter to Berry, he asks that the ACORN Institute “and any other ACORN affiliates, particularly any of those reviewed by my staff, be prohibited from participating in the CFC. The acts perpetrated by ACORN employees were impermissible and should not be supported with CFC dollars.”

CFC refers to the Combined Federal Campaign, which bills itself as “the world’s largest and most successful annual workplace charity campaign.” CFC is a federally administered program that channels donations from federal civilian, postal and military employees into causes deemed worthwhile. It is unclear how much money the ACORN network receives through CFC. (more…)

Zena Crenshaw

ACORN Scandal: Will Harshbarger Intervention Make or Break the ACORN?

by Zena Crenshaw

ACORN’s CEO, Bertha Lewis announced last week that the group will seek an independent review of its operations. ACORN also announced that former Massachusetts Attorney General Scott Harshbarger would oversee the review. Although it seems difficult to imagine that the credentials of an attorney could allay public skepticism about the ethics of ACORN—especially in an era where lawyer-dominated institutions are frequently enmeshed in scandal—the professional background of Harshbarger makes him possibly the right person for the job.

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That is, if ACORN—and Bertha Lewis—let him do the job.

Bertha Lewis is among the ACORN senior staff and Executive Committee members who actively concealed an apparently million dollar embezzlement from the organization by Dale Rathke, brother of ACORN founder and Lewis’ predecessor Wade Rathke.  So it is hard to believe Scott Harshbarger’s first line of business will be recommending or otherwise arranging for ACORN to fire Bertha Lewis and all her admitted, embezzlement concealing co-conspirators.

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Publius

IRS Severs Ties with ACORN Over Scandal

by Publius

From the Associated Press:

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WASHINGTON (AP) – The IRS says it is severing ties with ACORN, the community activist group involved in a scandal after employees were caught on video giving advice to a couple posing as a prostitute and pimp.

The Internal Revenue Service said Wednesday it would no longer include ACORN in its volunteer tax assistance program. The program offered free tax advice to about 3 million low- and moderate-income tax filers this spring.

The IRS said ACORN, which is short for the Association of Community Organizations for Reform Now, provided help on about 25,000 returns.

Read the full article here.