The New York Times reported today that long-suffering Brooklyn homeowner Daniel Goldstein has finally been forced out by the state’s eminent domain abuse in the Atlantic Yards case. And the paper turned to ACORN chief Bertha Lewis for some gloating commentary:

Bertha Lewis, a housing advocate who supported the project, bid Mr. Goldstein “good riddance.”

“Low- and moderate-income people had to wait years for housing while he obstructed the Atlantic Yards project,” she said.

Of course, Lewis is much more than just a “housing advocate who supported the project,” she was the CEO of ACORN, a group that signed a contract with Atlantic Yards developer Bruce Ratner “to publicly support the [Atlantic Yards] Project by, among other things, appearing with the Developer before the Public Parties, community organizations and the media as part of a coordinated effort to realize and advance the Project.” In return, Ratner pledged to include a certain amount of “affordable housing” in the project, units that ACORN stood to make a fortune from marketing and managing. As the New York Post reported, “Anita MonCrief, a former ACORN official-turned-whistleblower, estimates the anticipated deal could bring the group $5 million to $10 million annually over multiple years.”

And the money didn’t stop there.

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ACORN founder Wade Rathke has been gloating on his blog about the recent arrest of James O’Keefe in Rathke’s hometown of New Orleans.

Andrew Breitbrat and his www.biggovernment.com site stopped pretending that James O’Keefe, bungler-in-charge, was not his boy, and realized that he needed to stop shouting and start ‘splaining.

Breitbrat?  Zing!  How adult of you, Wade.

Similarly, current ACORN chief organizer Bertha Lewis issued a statement upon the news:

The recent arrest of James O’Keefe, is further evidence of his disregard for the law in pursuit of his extremist agenda. From the day that O’Keefe’s undercover “sting” videos came out, ACORN leadership pledged accountability for its own staff while pointing out that the videos had been shot illegally and edited deceptively in order to undermine the work of an organization that has empowered working families for four decades.

It’s as if O’Keefe’s problem somehow is vindication for the corrupt web of organizations she oversees.

Bad news, Bertha: it’s not.

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Last month, New York’s highest court heard oral arguments in the case of Goldstein v. New York State Urban Development Corporation. At issue was the state’s controversial seizure of private property on behalf of a 22-acre development project known as the Atlantic Yards. Situated in central Brooklyn, this taxpayer-subsidized boondoggle was the brainchild of real estate tycoon and New Jersey Nets owner Bruce Ratner, who wants to build an “urban utopia” complete with more than a dozen office and apartment towers, a 180-room hotel, and a fancy new basketball arena for Ratner’s Nets to call home.

Real Estate Tycoon Bruce Ratner and ACORN's Bertha Lewis

To get his way, Ratner turned to his buddies in big government, specifically the Empire State Development Corporation, a controversial state agency with the power to bypass zoning laws and seize private property via eminent domain. In other words, this is a classic case of eminent domain abuse. Ratner isn’t building a bridge or a tunnel or any other legitimate public project that might justify the forceful taking of private property by the state. He wants to build a basketball arena, sell tickets to the games (not to mention broadcast rights, concessions, and luxury boxes), and collect a big fat profit.

So what in the world is ACORN, a self-described champion of “social and economic justice” and “low- and moderate-income people” doing in bed with a shady corporate powerbroker like Bruce Ratner? Let’s follow the money.

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Last Tuesday, I had round two with former ACORN Chief Organizer and current head of Community Organizations International, Wade Rathke. This interview was a lot more sweeping. It ranged from Rathke’s philosophy, his philosophy on organizing, his views on the tea parties, to all sorts of issues surrounding ACORN.

1)What do you think of the tea parties?

It’s important to note that I wasn’t asking about political philosophy or personal preference, but rather as an organizing philosophy.

Rathke is impressed by their ability to organize. As an organizing phenomenon, the tea parties are effective and, as an organizer, Wade Rathke believes they took advantage of a vacuum, stepped in, and filled a void that the president never saw coming. Rathke once referred to the tea party movement as “tea baggers”. He did this only once. He never really took any pot shots at them besides this and so I don’t know that this was a deliberate dig.

Rathke did, however, also point out that often the tea parties fail basic organizing principles.

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For decades the Crescent City has played host to one of the most feared and revered political organizations in America, the Association of Community Organizations for Reform Now (ACORN). Today, the Louisiana Attorney General’s office executed a search warrant on ACORN’s National Headquarters at its Canal Street address.

“We’re looking for corporate records and financial documents” states Investigator Scott Bailey; which are essentially the same things the ACORN 8 sought nearly 18 months ago. “We also wanted ACORN real estate records” states Marcel Reid, President of ACORN 8.

“We sent letters to the entire ACORN Board of Directors nearly a year ago, stating that it was either provide this information through the ACORN 8’s Writ of Mandamus (request for books and records) or we were going to go to the Police” continues Reid.

“It could not have happened at a better time” states Michael McCray, National Spokesman for the ACORN 8. “We believe that ACORN is trying to flee this jurisdiction. Since Louisiana seems to be the only government agency that is seriously investigating ACORN.”

“If ACORN hopes to survive then the know nothing, see nothing, do nothing board of directors must by replaced by individuals with the strength and capabilities to fulfill their fiduciary obligations and the courage to reign in corruption within ACORN’s senior management ranks” continues Reid.

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Photo from Big Government Contributor Kevin Kane

In a fast-breaking development comes word that agents of the Attorney’s General office in Louisiana have raided ACORN’s offices in New Orleans. ACORN’s New Orleans was, for decades, the headquarters of the national community organizing association. News of the raid comes from Marcel Reid and her colleagues at ACORN 8, an association of former ACORN leaders and board members. Many of the individuals involved with ACORN 8 were fired from ACORN for demanding a forensic audit following an embezzlement scandal involving Dale Rathke, brother of ACORN co-founder Wade Rathke.

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If you have been following the unending revelations about ACORN on BigGovernment.com, then you are likely aware of ACORN’s $1 million embezzlement cover-up which has now grown to an alleged $5 million embezzlement cover-up. 

This new $5 million revelation was posted just days after ACORN founder and the embezzler’s brother Wade Rathke nonchalantly explained his reasons for the embezzlement cover-up to Megyn Kelly on Fox News:

“Because we made a decision that between restitution and retribution, that restitution was more in the interest of the [ACORN] organization and that decision was unanimous.”  

A pimp, prostitute, underage human trafficking and now a self-professed murderer; what could be next for the embattled Association of Community Organizations for Reform Now?!?

Margaret Williams, Maryland ACORN board member and Sonja Merchant-Jones, Baltimore ACORN President both reported that the low level ACORN employees caught on tape in the Baltimore office were immediately terminated for behaving unprofessionally; but yet, senior staff members who assisted and concealed a million dollar Rathke embezzlement remain employed.

The ACORN 8 commends these board members’s decisive action, but find it extremely ironic since the board of directors do not actually control ACORN employees. According to ACORN’s by-laws that authority is exclusively exercised by the “Chief Organizer,” formerly Wade Rathke and now Bertha Lewis. This fundamental disconnect between an actual functioning board of directors and senior management is the true problem and real scandal within ACORN. It causes low-income members and staff to become mere pawns of senior management.

Ultimately, ACORN’s low-income workers are simply trying to meet and fulfill unreasonable membership quotas set by senior staff. This undue management pressure results in fraudulent voter registrations, tax assistance for “pimps and prostitutes” or worse. Poor governance and lack of accountability are the real problems. Voter fraud or rather voter registration fraud are just symptoms of a far greater problem. And that is the lack of meaningful control and accountability by the membership. So don’t fault poor workers – blame the board!

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Imagine: In the days following the public revelations of the accounting scandal at Enron, then-CEO Ken Lay convened a news conference. He forcefully expressed his disgust with the actions of his subordinates and vowed to begin “cleaning house” at the company. Taking a few turns to slam the company’s critics and the reporters who had uncovered the scandal, he stressed that, this time, there would be a thorough revamp of the company. He even said that people would be fired! Reassured, reporters, lawmakers and regulators shrugged and went back to their daily lives.

ACORN CEO Bertha Lewis and Former Enron CEO Ken Lay

Substitute Bertha Lewis for Ken Lay and ACORN for Enron, in this hypothetical situation, and you’ll have a pretty good idea of what was asked of us at Lewis’ tour-de-force theatrical performance at the National Press Club earlier this week. She alternated between attacking her critics, expressing disgust with the actions of her employees caught on tape by James O’Keefe and Hannah Giles and vowing to pursue a lawsuit against the filmmakers for capturing on film her employees’ misdeeds. Oh, and by the way, she really, really—she means it this time—intends to “clean house” at ACORN.

Washington Post columnist Dana Milbank captured the surreal tableau best:

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The Washington Post’s Dana Milbank weighs in on Bertha Lewis’ theatrical show at the National Press Club:

Bertha Lewis, the head of ACORN, is one tough nut.

She came to the National Press Club on Tuesday, ostensibly to report on the community group’s “internal probe” into the ACORN workers who were caught on tape advising people posing as a pimp and a prostitute. But Lewis made it clear that, far from apologizing, she was on a “set-the-record-straight tour” — and a tour de force it was.

The internal review by ACORN’s board, disclosed this week by the Louisiana attorney general, that $5 million had been embezzled from the group rather than the $1 million previously alleged? “This is speculation, completely false and not based on any documentation or any audit or anything other than two disgruntled former board members,” Lewis reported.

Accusations of voter fraud after ACORN workers filled out voter registrations for Mickey Mouse, Donald Duck and the starting lineup of the Dallas Cowboys? “An utter fabrication and a work of fiction that was created by the people who wrote it.”

The report by Republicans on the Senate Finance Committee that ACORN created a “shell game that funneled charitable funds to for-profit organizations”? “Another stretch of allegations of how to pound on ACORN. . . . It’s just false.”

And, of course, the secretly recorded videos of ACORN workers providing help to people claiming they wished to set up an underage-prostitution business? “These highly edited tapes,” Lewis said, “don’t tell the whole story.” ACORN’s accusers “have to stoop to break the law in order to create something sensational,” she added.

In creativity, the ACORN boss’s denials were matched only by her assignments of blame. She blamed her predecessor: “I don’t think it’s fair to judge me, as I’m cleaning up a previous administration.” She blamed the powerful: “We’ve seen this play before, whether it was the civil rights movement or whatever, when you organize poor people to have real power, what you do is often turned against you.” And most of all, she blamed Republicans: “The RNC . . . because we’ve been inflated as the boogeyman, raises almost $2 million a day, every day, and this form of modern-day ACORN McCarthyism has got to stop.”

Assigned only a minor role in this orgy of blame were ACORN and Lewis herself. “My biggest weakness is a certain naivete about folks coming after you,” she said in a moment of self-interested introspection. “I guess maybe others might have known and could have set up some other barriers and could’ve been better with media and PR.”

Read the whole story here. But, first savor this quote. Perhaps one of the best Big Media comments during this breaking saga:

But Lewis, in playing the victim, is her own worst enemy. Forget the film of the pimp and prostitute: Watching a film of Lewis’s performance yesterday would probably be enough to cause lawmakers to cut off ACORN’s federal funding.

Issa Responds to Bertha Lewis Charge that ACORN the Victim of Republican McCarthyism

WASHINGTON. D.C. – House Committee on Oversight and Government Reform Ranking Member Darrell Issa (R-CA) issued the following statement today in response to comments made by ACORN CEO Bertha Lewis at the National Press Club where she accused Republicans of ACORN McCarthyism:

“Was it Republicans who embezzled millions from within their own organization and have yet to report the embezzlement to the IRS or Labor Department?  Was it Republicans who conducted the internal review that highlighted the lack of firewalls between their charitable and political activities?  Was it Republicans who hired a man convicted of multiple counts of conspiracy and money laundering to raise funds and register voters in Oklahoma?  The fact that ACORN’s leadership refuses to even acknowledge and accept responsibility for the state of their organization is disturbing and brings into question the sincerity of ACORN’s pledge to reform their organization.”

While ACORN CEO Bertha Lewis addressed the National Press Club, the House Committee on Oversight and Government Reform Republican Staff were reviewing new internal ACORN documents that shed further light on ACORN’s intent to capitalize on the opaque nature of their funding structure in order to fund its partisan political activities.  (more…)

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 NOLA.COM:

An internal review by the board of directors of the community organization ACORN determined that the amount allegedly embezzled from the community organization was $5 million, well more than the previously reported amount of nearly $1 million, according to a new subpoena in an investigation by Louisiana Attorney General Buddy Caldwell.

The subpoena, released this afternoon, says, “It is still unclear if some of the monies embezzled are from state, federal or private funds.”

Caldwell issued subpoenas in August seeking documents related to Acorn International then-President Wade Rathke and his brother Dale Rathke, who kept the group’s books. Those subpoenas were focused on possible Acorn violations of state employee tax law, obstructing justice and violating the Employee Retirement Security Act.

Whole blockbuster story here.

Update: According to the new subpoena issued by the Louisiana Attorney General, it seems ACORN leadership was aware of the full extent of the embezzlement. That they have covered up the true figure cast doubt on their ability to truely reform the organization. In other words, they will only admit to what they get caught at.

Last week was both good and bad for the leftist “activism for profit and power” leadership of ACORN. Their tentacles will finally reach New York City Hall – and the Pension funds of New York City ,when the Democratic nominees for Public Advocate and City Comptroller, both of whom owe their nomination to the ACORN front- the New York Working Families Party, are elected this November. At the same time  a scandal started to unravel in a upstate New York county where, for the first time, ACORN is under the scrutiny of a District Attorney who is not a Democrat cross-endorsed by the WFP.

Make no mistake about it , the so called Working Families Party, a party with no county chairmen or county committees, and no unpaid workers, is merely a front for ACORN. They share the same office and addresses. ACORN Executive Director Bertha Lewis is the Co-Chair and de-facto boss of the well heeled little “party”. Labor pours in millions to leverage the Democratic Party to the Left….on their issues. With New York deeply in the hole and with state revenue dropping sharply, there is no discussion of cutting the state’s bloated labor costs.
 
The WFP, controlled by  ACORN, has no shortage of cash, indeed the party’s founder embezzeled $1 Million dollars but the ACORN elected not to prosecute him for fear of a court laying bare their financial books and records. 

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Earlier this week, ACORN founder Wade Rathke brought his traveling “everyone-is-against-us” road show to DC to promote his new book, Citizen Wealth. The book doesn’t contain surprises; a 200 page polemic laying out a stale progressive agenda for America. What was interesting though, was a rare glimpse from ACORN’s long-time Chief Organizer into the current scandal now overwhelming the organization. Rathke did not disappoint.

I should note that on a personal level Rathke is easy-going and downright charming. And having been around the political/policy block for decades, he’s mastered a tight control of messaging. A control that makes his successor, Bertha Lewis, sound like an amateur college activist by comparison. That said, his Q & A exchange was fascinating. (Video below from Founding Bloggers.)

But Rathke, for all his political prowess, does slip up. While extrapolating about why he and ACORN’s leadership made an executive decision not to disclose his brother’s nearly $1 million embezzlement, Rathke explains that they were afraid their opponents would “weaponize” the crime in order to destroy ACORN. He went on to suggest that the current turmoil engulfing ACORN justifies the decision to cover-up the embezzlement scandal for eight years. He clearly believes that the end (ACORN’s existence) justifies the means (a cover-up). Rathke still doesn’t appear to acknowledge his brother’s crime for what it was. He refers to his brother’s embezzlement as a “misappropriation” of funds. His moral calculus, while seemingly sincere, is disturbing. Other organizations that truly attempt to aid low-income families (without political agendas) should be alarmed.

Another item of interest came at the end of this interview clip. Rathke talked about the “subculture of organizing” and intimated that it was much different than the broader culture we inhabit. Taking a rare jab at ACORN, he noted that “There is a different culture,” a distinction he believes ACORN doesn’t fully appreciate. Different culture, indeed.

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“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.

Vadum_TheKingsleyMemo_CapitalResearchCenter –

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…)