ACORN Layoffs are Taxpayer Rip-offs
by Michael McCrayAllegations of continuing corruption continue to mount against the embattled Association of Community Organizations for Reform Now (ACORN). In the wake of tremendous negative publicity, much of which was featured here at Big Government, and adverse House and Senate votes ACORN has begun laying off dozens of low-level workers and staff across the country.
However, under conditions of strict anonymity, ACORN organizers and staff have complained to the ACORN 8 (www.acorn8.com) that senior management has ordered them to continue to work for ACORN as “volunteers” but for them to apply for unemployment insurance.
In order to legally collect unemployment insurance compensation, the applicant must attest that they are ready, willing and able to work elsewhere to qualify for benefits. This is unemployment insurance fraud. And fraudulently applying for unemployment insurance compensation is a crime.
When these allegations were first brought to the attention of the ACORN 8, we initially thought no way. This is unbelievable, no one in their right mind would ever agree to do this. But we kept hearing these same allegations, over and over again, from different people in different parts of the country. And this is ACORN – these are the same of workers who registered Mickey Mouse to vote and offered tax advice to a pimp and prostitute.
Consequently, we fear that ACORN senior management has launched yet another scheme to exploit the gullibility of some low income workers and bilk American taxpayers out of thousands of dollars of government benefits.
But who controls the staff at ACORN? The national president (Maude Hurd)? The Executive Director (Steve Kest)? The answer is the Chief Organizer, or Bertha Lewis. Under ACORN by-laws the Chief Organizer (not the board of directors) is responsible for all of ACORN staff and employees. Lewis has control of the staff; but the board has to reign in Lewis (and others).
Bertha Lewis has previously announced that an advisory council would assist her in getting ACORN’s “house in order”. This 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. In our opinion, the first order of business should be to “clean house” entirely and remove all culpable leaders and managers, including Lewis.
This will never stop until the corrupt leadership and senior management are purged from the organization. These individuals have gotten away with doing wrong for so long; they appear incapable of doing anything the right way. Greg Hall of Truth To Power once described ACORN as an organization that can’t count to “one” when preparing voter registrations. Now they can’t fill out unemployment insurance forms either.
The ACORN 8 have always sought to reform – not destroy – ACORN. But as scandal after scandal continue to emerge; it is getting hard for die hard supporters, like the ACORN 8, to believe that ACORN will survive. And there simply is no way that ACORN can continue to exist under the control of incompetent or corrupt senior management and executive leadership.
Email this to a friend | Print |
Share on Facebook
| Tweet this
| 
Follow Us on Twitter
Subscribe via RSS
Got a Tip?
67 Comments
WoW! Great point, and great article Michael.
Now, in addition to Community Organizind and voter fraud, we can add Federal Unemployment Fraud to the charges stacking up against ACORN. They certainly are running a house of ill repute, eh?
[...] This post was mentioned on Twitter by clarissa jones and SavageNews, DRIP USA. DRIP USA said: ACORN Layoffs are Taxpayer Rip-offs: Allegations of continuing corruption continue to mount a.. http://bit.ly/1nPMT #tcot #ocra #tlot [...]
Michael, thanks for staying on this story. It's just so amazing to me that the people ACORN is supposed to be helping are the ones that are being used while the management at ACORN are making out like fat-cats with power and money.
I feel bad that once again the low level workers are the ones chopped when sense tells you that to get rid of upper management would save much more money than several low level people. When will the communities realise that "Acorn" is not working for them.
I am curious. How much does Bertha Lewis get paid?
Dear Mr. McCray,
Please tell me why you can, in any way, still support this org.
“Reforming” them after over 30 years of their existence is just trying to get an unwilling leopard to change it spots.
Now, from what I read in your piece, they are willing to make modern day “slaves” out of their work force without any second thought.
This org. is truly despicable. They have absolutely no compassion for the poor and needy, just a hunger for power and control, and to praise their "Dear Leader" Obambi, blessed be his name.
Have they done anything, for anybody, that has ever benefitted anyone?
Not Over.
there is NO reprehensible behavior that you could tell me that ACORN is doing that I wouldnt believe.
Is this not what our government is now preaching. We want to help you. Is this not what the socialists have done in every situation, start by helping the people, is this not what Hezballah does first, help the people then use them.
ACORN doesn't comprehend the Law of Cause & Effect! When the Head is sick, the Body is sick. I don't consider Bertha-Butt to be the real head, or even Radtke brothers any more. The head is Mao Obama and Valerie Jarrett and somebody in Chicago.
And Thank You x 1,000 Mr McCray. Outstanding Job, Sir.
I have wondered myself and a little light would be nice. After all if we can cut the pay of major (private) corporations we should know what people on the taxpayer's dime are making. Yes I know ACORN is private and not for profit! Ha!
It seems now having employment with dirty Bertie International is a dirty inkspot on their resume.
Who needs workers skilled in agressive activist tactics? This is also illegal to not pay.
It's pretty rare that you come across a person/organization that cannot be parodied because you can't come up with anything more ridiculous or implausible than what they are already doing.
Laws, are for other people. We must remember that our Barry was counsel for this fine organization of extortionist, …ohhh…it all makes sense now!
The Obama Scam WOW! group.
My sentiment exactly and yet the Government can't wait to fund the deep pockets of Acorn in November.
ive asked this befor and ill ask again where the heck is that jerk holder oh wait he works for the orgenizer in chief never mind
Where's Obama defending his organization? Or is it now hands off since they got caught? Time to dump them from all federal funding, let them see if the Czars will donate their personal money to fund this illegal operation. When will we finally recognize that Obama and his "clan" are up to no good and need to be "tared and feathered" out of town. It's an old expression but one that needs to be revived.
"
lets hope when we get a real pres and jusice dept they go after all these creeps including holder for not doing his job
noo.. he didn't even know they were gettting funding … he doesn"t loose any sleep over it
So Bertha, you think you can garner some sympathy frim us by laying off the lowest level of your employees.
Your a fool! In a coruption crises like Acorns, you resign!
I doesn't really matter though because the entire organization starting with Andy and his thief brother sponsored by G. Soros are all corrupt and hate America.
That Soros guy is always around isn't he.
Gregory is correct, "when the head is sick, so is the body."
Great job Michael.
If this is indeed true, I suspect there's a Fair Labor Standards Act violation in there somewhere. If so, it's easy money for an enterprising plaintiffs' attorney …
These people invented Corruption and Fraud!! Time to clean house ACORN.
Wonder if there is an State Attorney General anywhere in the country willing to take this one on? Wonder if ACORN put anything in writing and if the ACORN* website was able to obtain it? I tell ya what, this organization is impressive in its ability to juggle so many illegal activities at the same time and still stand in front of a camera and claim its all someone else's fault.
Keep digging. We don't have much time before the 2010 elections and they are just itching to mess that one up too.
"This will never stop until the corrupt leadership and senior management are purged from the organization."
This won't stop until the underlying socialist principles that guide the organization are purged. Personally, I don't think that is possible.
But until that is done, IMO, any leadership change will ultimately fail in its attempt to create a permanent change the will effectively ignite the good will those who bear the majority of this country's tax burden, and are increasingly at odds with the entitlement mindset.
The prevaiiling wisdom in this country is never to stand up for what is right and conduct one's personal life with values, rather it is to say, "Well, everyone else is doing it." Wrongdoing is defended and doing right is ridiculed. In that vein, ACORN's promotion of having their "volunteers" apply for unemployment (illegally) is just one more blip on the radar screen of "justified" gaming of the system, and they believe it is ok to do so anticipating no consequences. Without this mindset, their frauds would be detectedgo. Using the label of "racist" to describe anyone who might question their egregious activities is disingenuous.
I wonder if Acorn employees were promised with future jobs once government restore their funding. Desperation? Or else why subject themselves to be used when Acorn are notorious for hanging their employees to dry when caught.
I have admiration for what the ACORN 8 is attempting to do, but I'm afraid the corruption runs too deep. Deeper than they even know.
Early 1980's, I responded to a Chicago Tribune classified ad for part-time work. The phone person was vague, but I made an interview appointment because I had gathered the work was something like product demonstrations or surveys in a shopping mall. No, the "work" for ACORN was protesting in street demonstrations for "fair housing," and the pay was not bad. I declined the job because I don't like deception, but I quite frankly assumed — and still believe — their funding likely came from CPUSA.
I really don't care if their organization goes out of business; I do care that it be prohibited from receiving state and federal money in any form, and any involvement in census and voter registration (which always used to require some registrar training in Illinois, and certification by a county clerk as a registrar. That apparently was changed as part of the "Motor Voter" Act in the 1990's).
[...] proof of ACORN's degeneracy comes today from Michael McCray who reports at BigGovernment.com that ACORN is asking workers it is laying off to continue working at ACORN as "volunteers" but to [...]
CowBoy Logic
Earlier you inquired as to Compensation for Bertha.
I worked for a tenticled 501-c3. The "game" is as a Director you setup your satelite organizations to provide you with consultation fees less then $50,000 is not publically supported. In the 501c3 I worked for I found 10 satelites with interlocking boards (family members) same accountant. Some of these only source of incomes were $50,000 grants from the mother organization thaty money was inturn spent as consultation fees. Outgoing Directors often keep consultation fees coming in for years from the satelites my guess is the Rathkes are still on the payroll
you may have stumbled across something…
"Your Honor, these fine, upstanding citizens had grown so accustomed to working for an organization that is so corrupt, so morally bankrupt, so utterly bereft of common human decency, honesty or integrity, that it never occurred to them that aiding & abetting an enterprise so relatively aboveboard as a brothel for illegal immigrant child prostitution could possibly be construed in any way as problematic…"
"WOW" its really hard to phantom this kind of abuse of the people that worked for ACORN. Washington needs to put a stop to these people now.
rank has its privileges. especially when the upper ranks are as rank as these scumbags…
now that you mention it, a sting involving setting up a brothel for illegal immigrant child prostitution would be too over the top for the most outlandish comedy skit. maybe it's all part of their evil plan?
EDIT
$50,000 is not publically supported… should.. read Publicly REPORTED..
they didn't invent it, but they have gone a very long ways toward perfecting it…
Folks,
you need to think outside the box on the last week. The reason the Obama staffers are trying to "kill " fox is because they must de-legitimize the messenger before it really starts to publish damning material. Maybe material so hot it brings about questions as to legitimate national election results.
Why try to shut fox down unless you have something so significant to hide that you fear it will bring about greater ruin? This attack is not only about the O administrations exacting revenge for bringing ACORN down but also about the potential information that may surface due to acorns fall from grace and spotlight focus.. Keep supporting the blogs(money folks! donate to the bloggers or give it to the government…) and beware of the alphabet news fringe(ABC, CBS,CNN, Media matters,MSNBC…)
Great Article…..Commit one fraudulent act after another is the ACON way. ACON 8 claiming to be the victim, Bertha Baghdad Bob Lewis is defending that they are helping the community and, Scott Levinson swears this is a Plot against ACON orchestrated by Fox! If you tell the Lie(s) long enough you will believe them.
This organization needs to be shut down, investigated, and it's members involved in criminal activities or conspiring to commit to be tried and incarcerated. Sorry Gitmo detainees….Looks like you will be staying in Cuba b/c we will need the jail space for ACON employees!
Isn’t it interesting that we have not heard “one word,” either in denial or support of ACORN/SEIU from one Obama???? Denial doesn’t work-oh it might for awhile. But, the truth always wins out. Support-whether it be verbal or monetary, has been shown to be given from Obama. AND, why are these former discharged employees not being formerly charged with criminal activity? And, under unemployment insurance laws-they will denied due to insubordination. The only “spoof” I see here is criminals stealing taxpayer dollars.
ACORN is violating the FLSA.
http://www.dol.gov/elaws/esa/flsa/hoursworked/scr...
Social comments and analytics for this post…
This post was mentioned on Twitter by AZgrassroots: ACORN Layoffs are Taxpayer Rip-offs http://bit.ly/1nPMT #dripusa #ocra #tcot…
Typical. ACORN and the workers doing this won't be charged most likely. We're dealing with a group that has no qualms about breaking laws as the Left will step in to muddy the waters to protect the group.
It's time to ask that difficult question. What did the President know and when did he know it? The closer this mess gets to the WH the uglier their response becomes.
Thank you Mr McCray for your continuing expose on ACORN. Unfortunately, the behavior of this organization is exactly what we will get from our own government if we continue to give them power by "voting" for those who offer to "give" us everything from free rent to free healthcare. Nothing is free. When you allow others to "help" you while you do what they say, you become their slave. Slavery was suppose to be abolished in the US. It still exists in Europe and other countries – it's just called something else. We are about to become slaves to the state and we are doing it willingly. Wake up America – even "Freedom isn't Free!"
But isn't this the case w/the black community in general. We have the likes of the Jacksons, Sharptons, etc…making MILLIONS off of the community they are supposed to be serving. Even Charlie (wow I found an extra $500K in my pocket) Rangel, an elected official has duped his consitiuency. I gotta tell ya…the last time I reached into my pocket and pulled out a $20 I was ecstatic…where the hell does hebuy his clothes?
Until those that are being misled by the fatcats, rise up and throw them the hell out…they will continue to be abused.
What I haven't seen in disseminating the frauda of ACORN is how much compensation the Board of Directors?Advisory Committee collects for their services. John Podesta et al is getting paid… How much??
RICO charges NOW. ACORN s/b NUTS–Natl Union of Thug Socialists.
More Salinsky…keep the pressure on!
I'm having trouble having sympathy for any "employees" of this organization. The system is corrupt from top to bottom. The only people I feel sorry for are all of the people that never received help. Millions in services were stolen from them and the taxpayer by ACORN.
You guys need to lay off the Koolaid. I am a ex-ACORN employee and still volunteer my time working with ACORN for my community. In no way, shape, or form does the management make you work for free. I was on unemployment, until I found a new job. But, I still volunteered my time running the office and organizing my community. I have a new job and still volunteer every waking spare hour, in order to make real change in my community. No-one is coerced to work for free or to commit unemployment fraud.
By the way, contrary to what Mr. McCray and the ACORN 8 claiming, they are not board member and are not even members of the organization. This is proof of their dishonesty.
The ACORN 8 are bitter ex-members. They have in many cases attempted to claim that they were acting on behalf of the executive board. That is false. ACORN is a democratically ran organization. This means you cannot go off on tangents without there being a vote on decisions. Those ladies did things on their own with no attempt at a democratic process.
Just because it didn't happen to you doesn't mean others weren't coerced to work for free or to commit unemployment fraud.
I know most of the managers of offices. None of them would coerce their employees to work for free. Most of them are very opinionated outspoken people. If this were to happen, those managers would start a huge fight and would probably resign, so as to not be a part of something like that. Those managers are people that put in a lot of hours, in order to make sure things are done correctly. I should know. I used to be one of those managers.
Anyone who claims otherwise is pulling your leg. ACORN is an organization that gives people a chance to make something of themselves. I for one did not have any experience in community organizing; but I have the heart to see change in the community. They saw my work ethic and hired me, even though I had not graduated from college yet and did not have a resume that would qualify me to do the work. But, they offer really good on the job training. In the end, I have been able to help people to stand up and become real leaders in their communities.
Unfortunately, giving people with no education and experience a chance, will sometimes yield crappy workers. Many of the workers in ACORN come from the poor communities they organize. Sometimes you get a lazy bum who thinks he or she can just coast and do nothing. Those people get fired and end up disgruntled and invent crazy allegations, to gain sympathy.
These attacks on ACORN are really about trying to put a stop to the biggest most successful community organization in the country. It is about taking away the people that help others to achieve their own potential.
I cannot wait until all this fuss is over. I plan on applying again, once they can afford to hire me again. Through ACORN, I have been able to accomplish some incredible things in my community and have seen thousands of people smile, when they realized that they can effect real positive changes in their communities. ACORN is a vehicle for democratic change. That is the real reason they are being attacked.
This has been going on for a very long time. I found this at: http://taxprof.typepad.com/taxprof_blog/2006/10/g...
I also found dozens of ACORN related nonprofit corporations on Guidestar (http://www.guidestar.org) with only slightly-changed boards, that cannot possibly have been meeting or doing due diligence. I have read the in-house attorney's letter (ignorded) to the ACORN board regarding their corporate practices, vulnerability to lawsuit, and required remediation for financial and other policies and oversight. It's par for the course that people who'd sign a pimp and ho up for "first time homebuyer assistance" (FHA/HUD/VA) to house 12-year old Salvadoran child prostitutes would do what's suggested above. "Worker Party?" How about "Work for Free?" Party – and isn't a person forced to work without pay also called a "slave?" WTF association does this have with ANYTHING these people lie about on a daily basis, and how is this defensible in any manner, putting the law aside (as obviously has been done for years).
That's the same way you take down union organizing. Publish the pay and perks of the bigwigs, publish the revenue from dues, then publish the amount of strike pay paid out in the last year. You're right; it would be an incredible wake-up call for the ACORN staff.
Mi Pain,
Thank you. Sincerely.
[...] proof of ACORN’s degeneracy comes today from Michael McCray who reports at BigGovernment.com that ACORN is asking workers it is laying off to continue working at ACORN as [...]
[...] ACORN organizers and staff have complained to the ACORN 8 (http://www.acorn-8.net/) that senior management has ordered them to continue to work for ACORN as “volunteers,” but for them t…. [...]
[...] ACORN Senior Management Launches Scheme to Exploit Low Income Workers and American Taxpayers In the wake of tremendous negative publicity, much of which was featured here at Big Government, and adverse House and Senate votes ACORN has begun laying off dozens of low-level workers and staff across the country. [...]
[...] have been telling paid employees to work for them as volunteers, instead, and earn their pay by collecting unemployment insurance. This, as blogger Michael McCray notes, would be a form of [...]
I suspect, if we could ever get accurate figures, that much of the money comes from administrative costs out of various federal grants downstream. With so many 'poverty program' grants, the money filters down thru several agencies – all of whom end up taking their 'allowable' 10-15% admin costs out (which is why billions spent show almost no money at the final receiving end). I have no doubt ACORN's funding comes far less from direct federal funding than from grants obtained at the state and local levels from Community Development Block Grants and the like. Many of these organizations have been operating in communities for twenty or more years and their winning a grant is almost a given. We have seen that ACORN obviously co-mingles funds and there's pretty good evidence that people working officially for one agency are actually doing the work for another at the same time. They are paid one salary – grants have budgeted for two or even three. The unused funds can easily be shuffled into other pockets. All of this is illegal but obviously there's no political will to clean it up.Some good forensic audits would uncover this in a heartbeat. But, now you're talking about the local levels where there is a desire to protect the local agencies who granted these funds to them: they dont want to uncover this as it reflects on their ability to get the funding they can then grant to other agencies. These can be agencies such as United Way who are above reproach that grant funding to low-income housing programs, child-care agencies and the like. They are ill-equipped to uncover this kind of fraud and really hope there isn't any. This is where you find your upper-middle-class do-gooders with a social work degree and firmly believe "its for the children". They are usually high social class gals whose husband is a judge or newspaper editor. It's just not in their realm of experience that this would ever be happening. Uncovering it would reflect badly on them, their families and their entire social network . . this cant be allowed to happen!
Then, there's the game of counting every 'recipient' that passes thru any agency; many of these are the same people and they're counted three, four, five times as they get services from each agency. This pumps the numbers up and practically guarantees more funding next grant cycle. Our entire social welfare system depends on honest, caring workers who wont game the system. This generous system is what allows a group like ACORN to develop methods of gaming the system and gives them some protection within the grantor agencies as they dont want to see the funding cut off because it 'does some good'. And the fact that some of these programs arent granted ANY administrative costs(the commodity foods program used to be that way) guarantees that billing staff to one grant while having them work for another becomes accepted practice – nobody even questions it. I know this because I worked in one of these final grantee agencies for over 15 years, writing the grants. We were sticklers for following the rules. Obviously, ACORN is not!
hi micheal got one for you he's receiving unemployment insurannce and collectiing workers compensation at the same time using a geogia address for the workers comp. and a new york address for the unemployment. He's getting workers comp. for total disability since 2005 and collecting unemployment since 2006 extented benefits and everything else
[...] or Distorting ACORN Child Hooker-Tax Fraud Scandal (video) Michael McCray, Big Government: ACORN Layoffs are Taxpayer Rip-offs Kenneth Gladney, Big Government: I Am Kenneth Gladney Hannah Giles, Big Government: LameStream [...]
[...] Video Investigation Stop The ACLU: And Yet Another ACORN Scandal Michael McCray, Big Government: ACORN Layoffs are Taxpayer Rip-offs James O’Keefe, Big Government: Unsolved Mysteries and Irreconcilable Difference for Mr. Scott [...]
measure; free online dating sites; propranolol 40 mg; msnbc.msn.com site tamiflu;
[...] Philadelphia Office Stop The ACLU: And Yet Another ACORN Scandal Michael McCray, Big Government: ACORN Layoffs are Taxpayer Rip-offs James O’Keefe, Big Government: Unsolved Mysteries and Irreconcilable Difference for Mr. Scott [...]
[...] — And Those Who Exposed It and And Yet Another ACORN Scandal Michael McCray, Big Government: ACORN Layoffs are Taxpayer Rip-offs James O’Keefe, Big Government: Unsolved Mysteries and Irreconcilable Difference for Mr. Scott [...]