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 –

(more…)

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

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

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

Those questions include:

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

(more…)