Fraud, Embezzlement, and Cover-Ups: A Brief History of ACORN
by Michael McCrayIn the wake of a series of embarrassing hidden-camera exposes and mounting congressional pressure to cut off its federal funding, Bertha Lewis, CEO of the Association of Community Organizations for Reform Now announced that ACORN will seek independent review. However, the ACORN review which followed the million dollar Rathke embezzlement was merely a smokescreen; eight former ACORN board members previously sought a complete forensic examination of ACORN and its related entities followed by an independent audit from a Big Four accounting firm.
Lewis noted that ACORN’s advisory council would assist her in choosing an outside auditor, former Massachusetts Attorney General Scott Harshbarger. The ACORN advisory council includes John Podesta, head of the Center for American Progress, a liberal think tank; Andrew Stern, president of the Service Employees International Union; and former Maryland Lt. Gov. Kathleen Kennedy Townsend.
“As a result of the indefensible action of a handful of our employees,” Lewis said in a statement, “I am, in consultation with ACORN’s Executive Committee, immediately ordering a halt to any new intakes into ACORN’s service programs until completion of an independent review.” Mind you, these are the same senior staff and executive committee members who concealed and covered up a million dollar embezzlement, but who themselves were never terminated.
Besides, ACORN already had its chance to do the right thing following the Rathke embezzlement when the board of directors appointed an interim management committee to investigate this fraud and reorganize ACORN. So what happened the last time that ACORN claimed to put in place its own internal management committee?
Last year, the national board of directors installed an Interim Management Committee (IMC) following a million dollar embezzlement by Dale Rathke and subsequent cover up by the ACORN executive committee, senior staff and co-founder Wade Rathke. The national board appointed Karen Inman (Legal Affairs), Carol Hemmingway (Financial Affairs) and Marcel Reid (Governance) to the IMC.
The national board authorized the IMC to hire independent professionals to investigate and reorganize ACORN following the million dollar Rathke embezzlement. While the ACORN board of directors took prompt corrective action after learning about the misappropriations, the IMC desired to take even more definitive remedial actions, including a complete accounting of all ACORN assets, a forensic examination of the known embezzlement and an independent audit of ACORN and it related entities.
These were all professionally prudent recommendations under the circumstances; unfortunately, 38 of 50 board members were swayed by the executive committee and ACORN insiders into condoning the cover up and removing the IMC board members who attempted to exercise their fiduciary obligations. Nevertheless, eight courageous board members banded together and formed the ACORN 8, LLC to reform the once venerable organization.
The ACORN 8 were the first to identify the nebulous Citizen’s Consulting Inc. (CCI) and attempted to “follow the money” at ACORN; the first to seek a forensic examination and independent audit of ACORN and its related organizations; the first to seek injunctions against ACORN, the Rathkes and CCI; the first to call for a national boycott of all charitable donations, federal funding and member dues; and the first to file Civil Rights and RICO complaints against ACORN’s corrupt management. Consequently, Louisiana Attorney General James “Buddy” Caldwell issued subpoenas and is investigating ACORN and Rathke.
Lewis also said that ACORN would name an independent auditor and investigator to conduct a wide-ranging “top to bottom” review of the organization.
Really?!? We’ve heard that one before; the IMC objected to ACORN’s duplicitous assertion that an “independent auditor” would be engaged following the Rathke embezzlement. When ACORN senior staff hired Mesirow Financial Services (not a licensed CPA firm) to conduct a review of ACORN’s financial controls, ACORN insiders presented this review as an “independent audit” to the board. Don’t be fooled: a review is not a forensic examination or an independent audit.
Worse still, the senior staff and executive committee members who were implicated by the embezzlement and continuing fraud cannot be the same individuals who hire the “independent auditors” to investigate – it is an inherent conflict of interest. If ACORN hopes to survive then the know nothing, see nothing, do nothing board of directors must by replaced by individuals with the strength, courage and capabilities to fulfill their fiduciary obligations. ACORN needs a qualified audit committee to formally engage truly independent outside auditors.
“ACORN has a long history of serving those who most need help, and giving voice to those who have been left behind.” Townsend said in a statement. “We will take the necessary steps to ensure that ACORN functions with the highest levels of ethical standards and competence.” But how is that possible when ACORN won’t terminate ACORN senior staff and executive board members who concealed a million dollar embezzlement and then ousted the board members who attempted to investigate the fraud?
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51 Comments
Excellent, concise and succinct article, summing up ACORN and tying all the pieces together. Now all we need is for Eric Holders Department of Justice, and the FBI to wake up. Perhaps Charlie Gibson will call and notify them. I am curious, if a crime is committed, and nobody comes to investigate it, is it still a crime?
Perhaps I need to look up the definition of what is, is……………
You all ought click on the link on Michael McRays name and read his bio. I have followed and researched Acorn 8 and am familiar with them. It is interesting information, and Mr. McCray is the spokesman. I like his articles, and respect his stance, wherein he states they are not disgruntled employees, nor do they want to see ACORN destroyed. I wholeheartedly support his right to take that stance.
Personally, in my opinion, ACORN is tainted, it is rotten nuts, and should be destroyed. It should be dismantled plank by plank, nut by nut and buried with a stake driven through its heart and a string of garlic hanging around its rotten branches. All of them: Rathke, Lewis, Podesta and everyone it touches. They are all tainted, and rotten…
Last year board members were fired with out a board meeting. Tells me their authority was fake.
Having audited banks in the past, something tells me if they are running 200 fronts, it will be impossible to trace all the transactions.
[...] This post was mentioned on Twitter by SavageNews, Michael Chavez. Michael Chavez said: Fraud, Embezzlement, and Cover-Ups: A Brief History of ACORN: In the wake of a series of embarrassing hidden-ca.. http://bit.ly/pIRne [...]
Mr. McCray, I applaud your stance and your desire to clean up ACORN. I question whether such a thing is possible, especially considering its co-dependent relationship with unions. Unions are second only to the government in their ability to tax and spend their constituents money, and they will not let you rebuild ACORN.
Pulled this off your website " we’re fighting now to make it an open organization with clean books, honest leadership and a willingness to grow through scrutiny and criticism."
With respect, I think you just need to bury the thing and start over. There are too many crooks involved and they have too many powerful friends in high places.
The question is whether ACORN is worth saving. And by that, I don't question Mr. McCrays' motives or ideals. My impression of ACORN, dating back to the late 70's is that it has always been a corrupt organization. It has been successful as a result of its ability to mask its corruption from many who would have otherwise laudable goals. My take is that people have been taken, and this is just the latest attempt to cover it up while trying to continue it. By all means out the corruption now, but looking forward it seems ACORN would be better left for dead.
If you want programs for low-income home ownership, fine. But couple those with efforts to organize block watch programs so those neighborhoods become strong and vibrant. Demand that vacant properties get condemned, or sold for tax delinquencies, quickly. Develop a solid social infrastructure too.
You want voter registration? Great. What kind of candidates are going to be voted for? Are school boards going to be held accountable? Are mayors and aldermen going to be? The entitlement mentality, a cornerstone of the ACORN history, is ultimately destructive to both the givers and the recipients. How about some real hope, for a change.
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Why is everyone so concerned about ACORN and it's alleged problems. After all, it was only brought to light by "something less" than a "real news" organization, ergo, everything must be just fine.
"ACORN has been corrupted from its original purpose by senior management and an organizational structure that exploits the low and moderate income membership ACORN was founded to serve." AMEN
The corruption is so intertwined in this organization, it must be put down.
You are correct. It was not NBC, CBS, ABC or CNN. It wasn't even MSNBC, the Washington Post or the new York Times. No "real" news orginization would touch such a story based on conjecture, rumor, innuendo and specultaion.
As I recall, it was just a couple of kids with a video camera and Grannies Chinchilla coat Makes one wonder, eh? I reckon the MSM have their sights set on bigger stories: The Obama Administration has declared was on FOX News. Thus far, FOX is unscathed, while the Administration is bruised and bleeding. How does Obama expect to prevail in two other fronts; against Global Jihad and Muslim extremists, when he can't even take on eighty year old Aussie Rupert Murdoch at FOX?
The other big stories that I am SURE the MSM is focused on, is the Administration loosing public opinion in the polls surrounding Health Care reform; the balloning Deicit that has US bordering on the brink of becoming a full fledged Banana Republic; and of course the facr Obama intends to cede US Sovereignty in Copenhagen on 7 December, 2009.
In light of those stories, it is no wonder the MSM cannot be bothered with ACORN………..
You are correct. It was not NBC, CBS, ABC or CNN. It wasn't even MSNBC, the Washington Post or the new York Times. No "real" news orginization would touch such a story based on conjecture, rumor, innuendo and specultaion.
As I recall, it was just a couple of kids with a video camera and Grannies Chinchilla coat. Makes one wonder, eh? I reckon the MSM have their sights set on bigger stories: The Obama Administration has declared was on FOX News. Thus far, FOX is unscathed, while the Administration is bruised and bleeding. How does Obama expect to prevail in two other fronts; against Global Jihad and Muslim extremists, when he can't even take on eighty year old Aussie Rupert Murdoch at FOX?
The other big stories that I am SURE the MSM is focused on, is the Administration loosing public opinion in the polls surrounding Health Care reform; the balloning Deicit that has US bordering on the brink of becoming a full fledged Banana Republic; and of course the facr Obama intends to cede US Sovereignty in Copenhagen on 7 December, 2009.
In light of those stories, it is no wonder the MSM cannot be bothered with ACORN………..
Hellow everyone i just thought i would let you all know about some video’s that i watched to day that i think will interest all of you all i don’t know how to post video’s or link’s so ill just give you the name of the man that made these video’s and you can type his name into your search bar and pull his video’s up on youtube.com his name is ( LORD CHRISTOPHER MONCKTON )this man says that obama is going to sign a treaty in December that will change our country forever and he said that he has read this treaty and he said in that treaty that it says that when it is signed we will loose all of our freedom and we will nolonger be able to vote and nomatter what we do we cant get out of this treaty everyone should look at these video’s and inform your friend’s and family and everyone that you may talk to on the intrenet we must put a stop to this i know there is going to be some one like cowboy logic that will critical of this posting but im just trying to get the word out about what is going on so please watch the video’s i think it is more important to try to help save our country than to critize some one that is trying to help like Dr. Orly Tatz if we all stand behind the ones that provide good information then they will be more likely to win their case’s so everyone please take a look at these video’s again the man’s name is LORD CHRISTOPHER MONCKTON thank you for your help and GOD BLESS AMERICA AND HER CITIZEN’S
My first negative impression of ACORN occured several years ago, when Missouri was considering raising the minimum wage. ACORN was a great supporter of this. At the same time, they were exempt from following the minimum wage laws in force at the time and paid their own clerical help less than the minimum wage. Some may think that is OK, since they are a charitable organization. I knew people who worked for ACORN in the past simply because they needed money to support their family. I respect no organization or executives that would accept pay higher than the minimum wage for themselves, but allow their own employees to earn less than a "living wage", while arguing that others should be forced to pay what they say for services
Very good article. Rathke really found a way how to milk the system. This has become like a family racketeering enterprise where his relatives working for his organization.
Obama dosent know what the definition of tax is.
I'll never forget watching the vainstream media election night 2000 bush vs. Gore…We feel confident predicting a winner….Bush…Gore…Bush Gore…News you can trust, lol what a bunch of bozos
Cowboy Logic, did you say the date for demise of National Sovereignty in Copenhagen is December 7? Another Day of Infamy on the anniversary of Pearl Harbor?
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Yes. Isn't that wildly ironic? That day, of all days!
Good article, I wonder if there ever will be justice on this issue?
[...] Originally posted here: Fraud, Embezzlement, and Cover-Ups: A Brief History of ACORN [...]
Yes. 7 December.
I very much admire the integrity, honesty and bravery of the ACORN 8. Unfortunately for them, the only news organization that actually gave news time to their story was FOX, and from what the WH says, they are not a "real" news organization.
How can ACORN be stopped when the only people that know the extent of their criminal activity are those of us who look for our news somewhere other than the MSM?
ACORN is full of crooks, criminals and communists. Anyone who thinks that they can be reformed should stop smoking the little green stuff that smells funny, or admit their own political agenda.
Ah, but when you "bury" an acorn, a sprout shows up in the spring…I think it best to dismantle the "acorn" layer by layer, thus ensuring that it doesn't sprout anew…
OMG!!! You people still milking this ACORN childishness? Y'all need to get lives, man!
Hey zipperhead. You're still coming around, eh?
It it weren't for people like US, people like you would not anything to complain about. You'd have to be out doing your community organizing thingey for hope and change that stoopid fools can believe in. I'd be willing to bet that whenever Buffy Wicks or Yosi Sargent had any particular "asks", you'd be the first one in line to drop to your knees.
People like you are part of the problem in this country. These people are thugs from the hood who lie, cheat and intimidate others to promote the liberal agenda (with our tax dollars no less). Can't just sweep this one under the rug. Turn on the lights and watch the rats scatter.
Zipperhead…that's kinda funny. Of course I'm still coming around. This ACORN Derangement Syndrome is the gift that keeps on giving. Still racking up those ACORN convictions I see. What's the count up to now…ZERO? Outstanding work lads! Keep up the great work.
Zipperhead (you do know the meaning of that, don't you?), it is not ACORN Derangement Syndrome (ADS) that keeps US here. it is ORS (Obama Revulsion Syndrome). There is a difference. The former is a mere compulsion; the latter is a vocation.
As to the conviction count? Nobody has been convicted yet, although several have been fired, and Wade Rathkes bimbo in new Orleans was shown the door. Of course there have been no convictions yet; how could there be any convictions without any arrests being made, or due process being accorded. Although this is the new Obummer Amerika, there are a few laws that still apply. There have been no arrests made, as there has been no invesigation, yet. Eric Holders Department of Justice is busy in Chicago investigating black on black murders, and the FBI is busy investigating the CIA for waterboarding rag-headed terrorists in Gitmo under the old Bush/Cheney Regime.
Sit back, grab yourself a beer and stay tuned…………………..
Cowboiy:>>> I am curious, if a crime is committed, and nobody comes to investigate it, is it still a crime?
I a tree falls in a woods, does it make a sound if no one is around to hear it?
If you find a pile of Bear turds in the woods, can you be certain if a Bear really took a Crap??
Ask Berta,,,,she will sniff the Bear turd to make sure it's for real, then twist it to say a rabbit did it
Cowboiy:>>> I am curious, if a crime is committed, and nobody comes to investigate it, is it still a crime?
I have asked that same question now for a month, and nobody has answered me. When a bank is robbed, the cops show up. When there is a fire, the fire department shows up. On trash day the garbage man shows up. Evidently, this ACORN scam wasn't a crime: nobody cared enough to even show up and investigate it.
"thugs from the hood" — oh so it's a racial thing. Well grab yer robe and burning cross Jethro. Them there negroes are a votin' again.
See how "youse people" are? You immediately interpreted that I had stereotyped you as Asian. I did not. There are about fifteen different definitions of what zipperhead means. I prefer two: one came from the SE Asian conflict; when a man was shot in the head, it looked like his head was unzipped, hence zipperhead. The second one, and the one I had in mind when addressing you had no racial connotations whatsover. It means simply "closed minded".
As to ACORN, there is a RICO case ongoing in Ohio, as we speak…………….
Well it's nice of you to concoct these meanings of "zipperhead" but to the rest of us…it's a derogatory slang term for Asians. That is according to the 15 definitions I can see. You seem like the type that watched the movie "Gran Torino" and enjoyed it (as I did) so I'm sure you knew exactly what the term means.
THIS JUST IN: Dateline Kabul, Afganistan, President Hamid Karzai is calling out President Obama for his recommending using ACORN to help with his get out the vote effort. Now thousands of votes for Karzai are being thrown out for fraud and he may have to face a run-off election. Bertha Lewis getting out infront of the breaking story strongly denies that James and Hannah were ever in their Afganistan Offices.
And Oh yes, the great big super duper huge RICO case filed in Ohio that was going to drag the evil empire known as ACORN to a smoldering heap of ash. The Conservative think tank, The Buckeye Institute filed this suit alleging like a million cases of voter fraud and voter intimidation and financial mismanagement and fraud and dead babies and dark side of the force and 9/11 and all sorts of nonsense in October of 2008? The super huge case against the empire that makes the Al Qaeda look like cub scouts and Patrick Fitzgerald was on the case and warming up the electric chair? The so-called "October Surprise" that the Republicans attempted that failed miserably?
Are you sure that actually even happened?
Obama has an uncanny sense for dates. After all he cut the legs out from the Poles on an historic anniversary. Don't think this is all just coincidence.
No. I never saw Gran Torino, but heard it was fair. I know exactly what the term means. I told you the definition I applied when referring to you. Nothing more, nothing less.
Perhaps not. Perhaps it was a figment of both our vivid imaginations. Keep coming here and exchanging dialogue. I won't give up on you. There is a chance we can convert you. Conservativism: changing hearts; one simple mind at a time………….
Praise the Lord, and pass the jar.
Thats funny!
In God we trust. All others pay cash. lol
Wait…wasn't Hamid Karzai a Bush.Cheney favorite? It's Florida 2000 all over again. Well, just let the so-called "out of control Liberal" Supreme Court hand the election to Daddy's little boy. lol
Just like Florida in 2000, ACORN will make sure that never happens again!
Yep, you got that right. Good ol BHO set up poor old Hamid so that his buddy Abdullah Abdullah (so good they named him twice) could upset him. Once AA is sworn in by Justice Roberts, AA has promised that SEIU will be given free rein unionizing all the home health care workers in both Kabul and Kandahar. Wade Rathke is busy providing training for the taliban on Chicago style unionization strageies. Taliban admit that BHO and company's strategy for destroying the west is much more effective and not so messy, they want to learn from the master.
This is the problem I have with the "ACORN 8."
ACORN is an engine of social disruption with Alinsky roots, it games the system however possible while gathering power to itself and causing further disruption.
What has been found are amateur mistakes easily revealed, leading to discovery of and greater recognition of more serious corruption.
What benefit is there in having a "reformed" more professional ACORN which may never get caught?
Besides, does ACORN really do anything that makes it worth saving? There are plenty of other social agencies doing the same legitimate work. Why should they be considered "must save" except for the non-legitimate work?
Yes I know what "zipperhead" is and it's funny because I'm not Asian. Calling me a derogatory term for someone of the Asian persuasion when I'm Scot/Irish is kind of funny.
Yeah, there's been about 5 terminations. Good. But, there has been quite a few investigation into ACORN over the past 2 years and every one of those investigations has exonerated ACORN of any wrong-doing. What's left to investigate them on that hasn't already been investigated and produced squat? I mean there is Nevada that if found guilty, could produce a whopping $5000 fine. Giles and O'Keefe's attorney will charge more than that per hour of legal defense.
I've been sitting back and drinking beers on this ever since Alberto Gonzales was forced to resign over this ACORN Derangement Syndrome. It's gotten to be quite entertaining.
Yeah, your little comment on "uppity" white folks and talks of taking over in a previous post weren't racist either? How come it's only racism when it comes from a caucasion? It works both ways!!
An excellent article. "when you put the fox in charge of watching the hen house", you know what will eventually happen. The people of America need to wake up, and demand a criminal investigation at the federal level independent of the white house.
maybe we all should stop and think that all this stuff that we are writing is bogus and we are just underminding america with our mess that we write. We should feel ashamed, thats right ashamed of just how stupid we sound with all these promote. Let's start loving this country again and be proud of all of it's people.
[...] Truth?; ACORN is About Power; Pittsburgh Trib-Review Nails it; Fraud, Embezzlement, and Cover-Ups: A Brief History of ACORN …. [...]