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	<title>Big Government &#187; Citizens Consulting</title>
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		<title>Anonymous Donors, Liberal Foundations and Labor Unions Fuel Renamed ACORN affiliates</title>
		<link>http://biggovernment.com/kmooney/2010/05/17/anonymous-donors-liberal-foundations-and-labor-unions-fuel-renamed-acorn-affiliates/</link>
		<comments>http://biggovernment.com/kmooney/2010/05/17/anonymous-donors-liberal-foundations-and-labor-unions-fuel-renamed-acorn-affiliates/#comments</comments>
		<pubDate>Mon, 17 May 2010 18:29:45 +0000</pubDate>
		<dc:creator>Kevin Mooney</dc:creator>
				<category><![CDATA[ACORN]]></category>
		<category><![CDATA[Big Labor]]></category>
		<category><![CDATA[Culture]]></category>
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		<category><![CDATA[Politics]]></category>
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		<category><![CDATA[ACORN funding]]></category>
		<category><![CDATA[ACORN Housing]]></category>
		<category><![CDATA[acorn scandal]]></category>
		<category><![CDATA[Affordable Housing Centers of America]]></category>
		<category><![CDATA[American Institute for Social Justice]]></category>
		<category><![CDATA[Anita MonCrief]]></category>
		<category><![CDATA[Annie E. Casey Foundation]]></category>
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		<category><![CDATA[Bob McDonnell]]></category>
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		<category><![CDATA[Herb Sandler]]></category>
		<category><![CDATA[labor unions]]></category>
		<category><![CDATA[Marguerite Casey Foundation]]></category>
		<category><![CDATA[Marion Sandler]]></category>
		<category><![CDATA[Matthew Vadum]]></category>
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		<category><![CDATA[Project Vote]]></category>
		<category><![CDATA[Robin Hood Foundation]]></category>
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		<category><![CDATA[Ronald Sykes]]></category>
		<category><![CDATA[Sandy Newman]]></category>
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		<category><![CDATA[Tides Foundation]]></category>
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		<category><![CDATA[William Ayers]]></category>
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		<guid isPermaLink="false">http://biggovernment.com/?p=121142</guid>
		<description><![CDATA[Even if Congress does move decisively to cut off funding from the self-described network of community organizers who previously called themselves ACORN, the renamed entities are likely to remain potent and well-funded into the foreseeable future, former insiders say.

In fact, donors may find it easier to channel funds in the direction of liberal activists who [...]]]></description>
			<content:encoded><![CDATA[<p>Even if Congress does move decisively to cut off funding from the self-described network of community organizers who previously called themselves ACORN, the renamed entities are likely to remain potent and well-funded into the foreseeable future, former insiders say.</p>
<p style="text-align: center;"><img class="aligncenter size-full wp-image-121146" title="acorn-irs" src="http://biggovernment.com/files/2010/05/acorn-irs.jpg" alt="acorn-irs" width="416" height="283" /></p>
<p>In fact, donors may find it easier to channel funds in the direction of liberal activists who describe themselves as community organizers now that the sullied name has been dropped, they suggest.</p>
<p>Shortly after ACORN’s leadership announced that it was dissolving on April 1, national and state affiliates repackaged themselves under generic sounding descriptions. ACORN Housing, for example, became known as the Affordable Housing Centers of America.</p>
<p>“Anyone who celebrates the demise of ACORN has celebrated prematurely because they are not going away,” Anita MonCrief, a former Project Vote/ACORN employee, said in an interview. “The network is repositioning itself so it can receive new donations.”</p>
<p>ACORN, which stands for the Association of Community Activists for Reform Now, has received over $53 million in federal funds since 1994, federal records show. Although the U.S. Supreme Court turned away a legal challenge to last year’s congressional ban on public funding, there does not appear to be any concerted effort on the part of lawmakers to have it reimposed.</p>
<p>Moreover, it is worth noting that only four Democrats joined with Rep. Michele Bachmann (R-Minn.) to oppose an amendment that would allow organizations with a criminal history to receive funding. The amendment was submitted as part of a mortgage bill several months before the videotape scandals broke.</p>
<p>“There’s a real boldness on the part of Democrats who want to keep funding ACORN,” Rep. Bachmann said. “They are incredulous about the possibility of losing their majority and they know which side their bread gets buttered on and ACORN is their friend.”</p>
<p>Even so, only a small-percentage of ACORN’s overall financial support comes from the government, MonCrief, explains. “The rest of the money comes from left-leaning foundations and there is no indication these funding sources will dry up,” she said. “There are also individual donors and you also have to include organized labor.”</p>
<p>MonCrief indentified Wellspring Advisors, Vanguard Charitable Endowment, the Rockefeller Fund and the Tides Foundation as the major conduits for facilitating anonymous donations.</p>
<p>“If someone wanted to contribute directly to ACORN without having their name attached to it they could give a  check to Wellspring Advisors, they can give to Vanguard Charitable Endowment, they can give to Tides Foundation,” she said. “There are so many ways ACORN can obtain money through these anonymous donors  and some are connected to the Rockefeller  Fund.  So long as there is an agenda they are going to make sure that money is funneled to them anyway they can.”</p>
<p><span id="more-121142"></span></p>
<p>Wellspring Advisors is the critical component in this equation, she emphasized.</p>
<p><strong>“</strong>Donors were able to give anonymously to Wellspring so the money would not be traced back to where it was coming from and Wellspring would then cut a check from Vanguard,” MonCrief continued. “That’s one way it happened.”</p>
<p>Sandy Newman, who founded Project Vote, operated as a conduit between Wellspring and the ACORN affiliate, MonCrief points out on her <a href="http://www.thenextright.com/anita-moncrief/acorn-part-iv-the-payoff">blog.</a></p>
<p>“ It&#8217;s interesting that Wellspring is one of Project Vote&#8217;s major donors and Sandy Newman steers other money in Project Vote’s direction,” she wrote. “Newman founded Project Vote along with Zach Polett, who was also head of ACORN Political Operations. ACORN voter registration drives are intentionally partisan undertakings with the intent to replace elected officials with ACORN friendly candidates. This is once again the “wink, wink” approach to doing business. It all seems so legal on the surface.”</p>
<p>Other former insiders such as Ronald Sykes, who served as treasurer for the Washington D.C. ACORN affiliate, have raised questions about Citizens Consulting Inc (CCI), which was the major accounting arm for the national group and its allied organizations. A report from the House Oversight Committee concluded that CCI was largely responsible for misappropriating and comingling funds.</p>
<p>“Money was funneled through Wellspring, from there it went into various bank accounts controlled by CCI,” MonCrief said. “CCI had dozens and dozens of accounts. Some were Project Vote and some were ACORN.”</p>
<p>MonCrief, who testified against ACORN in 2008 as part of a voter registration fraud case in Pennsylvania, said the Project Vote affiliate was closely interlinked with the national organization’s operations.</p>
<p>“It is laughable to say Project Vote was in any way separate because it functioned as one cohesive arm with ACORN,” MonCrief explained. “Project Vote could not exist without this support because it doesn’t have the field capacity to run voter registration programs.”</p>
<p>ACORN remains the subject of voter registration fraud investigations in at least 14 states and MonCrief  anticipates that the same network will find a way to remain active in the 2010 midterm elections and beyond. The political operatives that continue to stand behind the renamed affiliates are very shrewd in the sense that they will target areas where elections are close and where they have sympathetic local election officials, MonCrief warned.</p>
<p>Despite the publicity that followed various criminal investigations, there is much about ACORN that remains hidden from public view, Matthew Vadum, a senior analyst and editor with the Capital Research Center (CRC) suggests.</p>
<p>“We really don’t know how much ACORN has received from its aggressive corporate shakedown efforts,” Vadum observed. “The renamed network could remain well-funded thanks to liberal foundations and high dollar donors such as Herb and Marion Sandler.”</p>
<p>An intrepid researcher and investigator, Vadum has kept <a href="http://bigjournalism.com/mvadum/2010/05/11/tracking-acorns-rebranding-process-a-handy-updated-guide-2/">careful tabs</a> on the rebranded ACORN entities. Most recently, he reported on the <a href="http://dailycaller.com/2010/05/11/acorn-lobbying-efforts-continue-in-washington-under-communities-united-name/">lobbying efforts</a> of the rebranded D.C. affiliate.</p>
<p>As public attention dissipates and the ACORN name fades, foundations that pulled back in the wake of negative press attention last year may find they have more flexibility and dexterity to re-establish their support. This would be a significant development as ACORN drew in millions of dollars from foundations in the span of just a few years.</p>
<p>The lead ACORN organization registered in Arkansas and New Orleans has received $3 million from the Marguerite Casey Foundation, $821,000 from the Robin Hood Foundation, $595,000 from the Edna McConnell Clark Foundation and $65,000 from the Annie E. Casey Foundation, according to CRC.</p>
<p>Other foundations have contributed to ACORN&#8217;s affiliates.</p>
<p>Project Vote has received $4,047,500 from the Rockefeller Family Fund, $1,460,801 from the Tides Foundation, and $2,643,100 from the Vanguard Charitable Endowment Program, financial records show. ACORN&#8217;s American Institute for Social Justice (AISJ) has received almost $30 million in foundation grants, since 2000, according to CRC.</p>
<p>Other generous benefactors to AISJ include the Marguerite Casey Foundation, which donated $5,125,000 and the Bill and Melinda Gates Foundation which donated $4,130,000, CRC research shows.</p>
<p>In <a href="http://www.capitalresearch.org/pubs/pdf/v1225222922.pdf">previous reports</a> for CRC, Vadum has also called attention to the Woods Fund of Chicago, where President Barack Obama and former Weather Underground leader William Ayers sat as board members. The Woods Fund has donated about $190,000 to the ACORN network, according to financial records.</p>
<p>The corporate shakedown efforts, which have also been lucrative for ACORN, were largely funded by the Service Employees International Union (SEIU), according to the testimony MonCrief delivered in Pa.</p>
<p>One of the most aggressive and successful joint SEIU-ACORN nationwide campaigns known as “Muscle for Money” targets corporations and top officers who resist union demands, MonCrief has explained.</p>
<p>Even in the teeth of ongoing scandals, ACORN and its affiliates received over $1 million from organized labor in 2009 including over $220,000 from the Change to Win coalition, U.S. Department of Labor financial disclosure forms show.</p>
<p>The 2009 LM-2 disclosure forms show that SEIU Local 32 donated $25,400 to the national ACORN organization, Local Union 1 donated $32,791 to the ACORN Community labor Training Center and the national SEIU donated $37,878 to the ACORN Labor Partnership.</p>
<p>All told, organized labor has contributed over $10 million to ACORN, since 2005 with SEIU contributing about $8.7 million of this sum, according to Labor Department records.</p>
<p>In 2009 gubernatorial races, ACORN was active in attempting to swing the New Jersey election in cooperation with SEIU, according to other press reports. However, the network was less visible in Virginia where Republican Bob McDonnell won by a large margin.</p>
<p>As it turns out, Gov. Chris Christie’s margin of victory over the Democratic incumbent in N.J. was large enough to avoid a recount.  But there is a lesson here for Republican operatives in that community organizers who were supposedly setback by on-going scandals still found expression where they could most be effective; in close-competitive races where it is possible to maximize the influence of organized labor.</p>
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		<title>What Happened to That ACORN Investigation Jerry Brown Promised?</title>
		<link>http://biggovernment.com/droach/2010/03/01/what-happened-to-that-acorn-investigation-jerry-brown-promised/</link>
		<comments>http://biggovernment.com/droach/2010/03/01/what-happened-to-that-acorn-investigation-jerry-brown-promised/#comments</comments>
		<pubDate>Mon, 01 Mar 2010 13:27:41 +0000</pubDate>
		<dc:creator>Derrick Roach</dc:creator>
				<category><![CDATA[ACORN]]></category>
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		<category><![CDATA[ACORN document dump]]></category>
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		<category><![CDATA[Darrell Issa]]></category>
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		<category><![CDATA[proposition 13]]></category>
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		<guid isPermaLink="false">http://biggovernment.com/?p=81306</guid>
		<description><![CDATA[California Attorney General Jerry Brown seems to be getting a lot of reminders from his gubernatorial challengers Steve Poizner and Meg Whitman about his failed governorship of the state from 1975-1983 when Californian’s endured high unemployment, home foreclosures, large scale labor strikes and fuel shortages at the gas station.  Recognizing the failed policies of [...]]]></description>
			<content:encoded><![CDATA[<p>California Attorney General Jerry Brown seems to be getting a lot of reminders from his gubernatorial challengers Steve Poizner and Meg Whitman about his failed governorship of the state from 1975-1983 when Californian’s endured high unemployment, home foreclosures, large scale labor strikes and fuel shortages at the gas station.  Recognizing the failed policies of then Governor Brown, California voters revolted and passed Proposition 13 which is a landmark initiative that limited politician’s ability to arbitrarily raise taxes on California residents.</p>
<p style="text-align: center;"><img class="aligncenter size-full wp-image-82266" title="jerry_brown_crossed-arms" src="http://biggovernment.com/files/2010/02/jerry_brown_crossed-arms.jpg" alt="jerry_brown_crossed-arms" width="277" height="348" /></p>
<p>Over a week ago, Attorney General Jerry Brown got yet another reminder, this time coming from the U.S. House of Representatives Committee on Oversight and Government Reform.  The report &#8220;Follow the Money: ACORN, SEIU and their Political Allies&#8221; focuses public attention on AG Brown’s failed investigation of ACORN.  While some of Brown’s gubernatorial challengers talk of the need for a California Governor to have a spine of steel, AG Brown has instead crumpled like an aluminum can cowardly hiding behind state bureaucrats and a wall of state agencies.</p>
<p>On October 1, 2009, Jerry Brown publicly announced that an investigation had been opened concerning undercover videos that were obtained by citizen journalists James O’Keefe and Hannah Giles who videotaped ACORN employees at two California offices.  ACORN employees were filmed providing advice regarding tax evasion, prostitution and human smuggling of underage girls.  Gov. Arnold Schwarzenegger was informed by AG Brown in a letter that he had “opened an investigation of both ACORN and the circumstances under which ACORN employees were videotaped.&#8221;  Since that announcement, AG Brown has found himself at the center of a controversy surrounding the mismanagement of the investigation as well as a potential scandal due to a double standard involving one of his own state employees secretly recording conversations with reporters.</p>
<p>Shortly after ACORN had been alerted to the immanent investigation as a result of AG Brown’s public announcement, ACORN employees at the San Diego, CA office were caught engaging in a massive document dump on October 9, 2009.  Those records were retrieved from an unsecured shared public dumpster where they had been thrown revealing sensitive personal, financial and banking information for both clients and employees in addition to revelations about the political inner workings of ACORN’s relationship with major U.S. banks and labor unions.</p>
<p><span id="more-81306"></span></p>
<p style="text-align: center;"><img class="aligncenter size-full wp-image-82258" title="ACORN Dave Photo" src="http://biggovernment.com/files/2010/02/ACORN-Dave-Photo.jpg" alt="ACORN Dave Photo" width="360" height="480" /></p>
<p>Just a few days later, David Lagstein, ACORN’s head organizer in San Diego, was caught on an audio tape bragging how investigators from the Attorney General’s office had visited the local ACORN office that day and that communication from the Attorney General&#8217;s office indicates, &#8220;the fault WILL BE found with the people that did the video &#8211; not ACORN.&#8221;  Mr. Lagstein appears to have been speaking with greater knowledge and authority than he has led people to believe since my investigation revealed that in addition to being ACORN’s head organizer, he is also married to Clare Crawford who is a National Political Director for ACORN and who has ties to ACORN’s head office in Chicago, IL.</p>
<p>First Clip: Attorney&#8217;s General Office Visits ACORN</p>
<p>Second Clip: Fault Will Be Found With Filmmakers</p>
<p>On November 22, 2009 while on KFI 640 radio with Andrew Breitbart, the story broke that I had over 20,000 documents ACORN unceremoniously threw into a dumpster in advance of Attorney General Jerry Brown’s visit to the local San Diego office.  The following day, in a rambling statement on a Los Angeles radio show, AG Brown spoke about ACORN’s “right to privacy” of their trash.  Californians quickly saw an Attorney General shift into political “duck and cover” mode rather than show the leadership that is expected from California’s top law enforcement official.</p>
<p>After being granted access to the documents, photographs and recordings that I obtained, investigators from the attorney general’s office stated in a written letter dated December 7, 2009, “California Teachers Association (CTA) paid California ACORN Special Projects nearly $140,000 in April-May, 2009 to conduct what CTA reported as “voter registration,” yet, according to documents found in the ACORN trash…it is apparent that ACORN workers solicited voter support for Proposition 1B.”</p>
<p>My investigation clearly showed that ACORN’s support of the ballot initiative was done with resources provided by the CTA and their explicit approval that specifically solicited partisan support from Democrat voters in California.  Proposition 1B was a California ballot initiative during the May 19, 2009 special election that earmarked $9.3 billion for schools and was supported by CTA.  The letter further states, “Because the issues raised by Mr. Roach’s claim seems most appropriately handled by the Fair Political Practices Commission (FPPC), we are referring this matter to you.”  The FPPC is a state agency consisting of two republicans and three democrats that investigate violations of California’s Political Reform Act.  On December 30, 2009, Roman Porter Executive Director for the FPPC responded to the referral by the Attorney General’s office stating in a written letter, “There is no evidence of a Political Reform Act violation.”</p>
<p style="text-align: center;"><object id="_ds_26995843" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="550" height="550" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="name" value="_ds_26995843" /><param name="FlashVars" value="doc_id=26995843&amp;mem_id=1318219&amp;doc_type=pdf&amp;fullscreen=0&amp;showrelated=0&amp;showotherdocs=0&amp;showstats=0 " /><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /><param name="src" value="http://viewer.docstoc.com/" /><param name="flashvars" value="doc_id=26995843&amp;mem_id=1318219&amp;doc_type=pdf&amp;fullscreen=0&amp;showrelated=0&amp;showotherdocs=0&amp;showstats=0 " /><param name="allowfullscreen" value="true" /><embed id="_ds_26995843" type="application/x-shockwave-flash" width="550" height="550" src="http://viewer.docstoc.com/" allowfullscreen="true" allowscriptaccess="always" flashvars="doc_id=26995843&amp;mem_id=1318219&amp;doc_type=pdf&amp;fullscreen=0&amp;showrelated=0&amp;showotherdocs=0&amp;showstats=0 " name="_ds_26995843"></embed></object><br />
<span style="font-size: xx-small;"><a href="http://www.docstoc.com/docs/26995843/ACORN - FPPC Ltr 12-30-09"> ACORN &#8211; FPPC Ltr 12-30-09</a> &#8211; </span></p>
<p>In the wake of Jerry Brown alerting ACORN to an investigation that was to be conducted by his office, ACORN’s actions of dumping records into a dumpster in what appeared to be possible obstruction of justice, statements from ACORN officials that some interpret as possible collusion between ACORN and the Attorney General’s office and a referral of an investigation to another state agency in what appears to be an abdication of responsibility and the equivalent of a political passing-of-the-buck now comes new allegations that ACORN did in fact violate multiple California state and federal laws.</p>
<p>On February 19, 2010 Congressman Darrell Issa (CA-49) stated on nationally syndicated The Roger Hedgecock Show that documents from the San Diego office of ACORN were vital in showing a pattern of fraud, waste and abuse.  The documents also showed that ACORN and the California Teachers Association were directly involved in California elections without the proper firewalls that are legally required to distinguish non-profit from political activities.</p>
<p>Congressman Issa also referred to the recent report &#8220;Follow the Money: ACORN, SEIU and their Political Allies&#8221; which was released by the U.S. House Oversight and Government Reform Committee on February 18, 2009.  The report finds, “There is no distinction between ACORN and any of its affiliates.  Affiliates share staff, funds, office space, responsibilities, and common controls-there is no real separation between the parts, making it impossible to consider them as truly separate organizations.”</p>
<p>Documents obtained from the San Diego ACORN office included information about Citizens’ Consulting Inc which the report found is “an arm of ACORN that commingles funds from ACORN’s non-profit organizations and transfers this money to organizations to use for political purposes.”  Documents that I provided to the House Oversight and Government Reform Committee also showed a relationship, not only with the California Teachers Association but with the local chapter of Service Employees International Union (SEIU).  The findings in the congressional report found that, “SEIU and ACORN are not only financially but also politically codependent” and that “ACORN directly runs two of the most prominent SEIU locals.”  ACORN and SEIU were also found to share offices in nine cities across the United States utilizing staff and resources to advance both organizing and political goals.</p>
<p>Documents obtained from the San Diego ACORN office included financial records for Whitney Bank located in New Orleans, Louisiana.  The congressional report that was released found that ACORN maintained nearly 700 bank accounts at Whitney Bank alone not to mention numerous bank accounts at other banks including Bank of America.  It was revealed that ACORN had ownership interest in Whitney Bank.  The report findings shockingly revealed that Whitney Bank inexplicably wired several million dollars to an ACORN Bank of America account in San Francisco and that money has not been accounted for.</p>
<p>It is astoundingly amazing that with video evidence obtained by James O’Keefe and Hannah Giles, documents that show an undisputed pattern of political activism by a “non-profit” organization, millions of dollars that have been unaccounted for and a congressional investigation that has documented a pattern of criminal activity that has deprived the State of California from desperately needed tax revenues; that California Attorney General Jerry Brown has yet to show any real sign of leadership or fortitude necessary to protect the citizens of California or seriously investigate ACORN.</p>
<p>Instead he is hiding behind a state bureaucracy hoping that nobody will notice his lack of leadership until after the next election.  It is no wonder that Democrat elite are quietly whispering in their inner circles that Attorney General Jerry Brown failed California as Governor and is once again failing to show any signs other than that of a washed up politician who is once again trying to become Governor before heading of to retirement to enjoy his family’s trust fund. Perhaps it is time to investigate those in Sacramento for their ties to this corrupt organization.</p>
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		<title>Lousiana Attorney General Serves ACORN With 2nd Subpoena: Full Text</title>
		<link>http://biggovernment.com/kkane/2009/10/06/lousiana-attorney-general-serves-acorn-with-2nd-subpoena-full-text/</link>
		<comments>http://biggovernment.com/kkane/2009/10/06/lousiana-attorney-general-serves-acorn-with-2nd-subpoena-full-text/#comments</comments>
		<pubDate>Tue, 06 Oct 2009 20:00:45 +0000</pubDate>
		<dc:creator>Kevin Kane</dc:creator>
				<category><![CDATA[ACORN]]></category>
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		<guid isPermaLink="false">http://biggovernment.com/?p=13550</guid>
		<description><![CDATA[From Steve Beatty, investigative reporter for the Pelican Institute:

 

The brother of ACORN&#8217;s founder embezzled $5 million from the organization, nearly five times more than the figure previously acknowledged by the New Orleans activist group&#8217;s officials, according to a subpoena served Monday by the Louisiana Attorney General&#8217;s Office.
&#8220;The exact amount of the embezzlement was unknown until [...]]]></description>
			<content:encoded><![CDATA[<p>From Steve Beatty, investigative reporter for the <a href="http://http://www.pelicaninstitute.org/files/pdf/PELICAN%20NEW%202.pdf">Pelican Institute</a>:</p>
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<p> </p>
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<blockquote><p>The brother of ACORN&#8217;s founder embezzled $5 million from the organization, nearly five times more than the figure previously acknowledged by the New Orleans activist group&#8217;s officials, according to a subpoena served Monday by the Louisiana Attorney General&#8217;s Office.</p></blockquote>
<blockquote><p>&#8220;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,&#8221; reads the court document. &#8220;It is still unclear if some of the monies embezzled are from state, federal of private funds.&#8221;</p></blockquote>
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<span style="font-size: xx-small;"><a href="http://www.docstoc.com/docs/12695807/ACORN-2nd-Subpoena">ACORN 2nd Subpoena</a> &#8211; </span></p>
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<blockquote><p>ACORN officials have said that Dale Rathke, brother of founder and former CEO Wade Rathke, in 1999 and 2000 inappropriately charged $948,000 to accounts controlled by Citizens Consulting, the bookkeeping arm of ACORN. Under a quiet arrangement known to only a fraction of the organization&#8217;s 50-member board, Dale Rathke was allowed to set up a repayment plan. He eventually repaid about $200,000 before a private donor paid the balance.</p>
<p>Attorney General Buddy Caldwell said the statute of limitations for theft from ACORN could present problems. However, the language about the source of the money in the new subpoena hints that ACORN might not be the only victim of the alleged embezzlement and could open new avenues of investigation or prosecution.</p>
<p>Though the debt is paid, the attorney general&#8217;s office can still consider whether ACORN or Citizens Consulting intended to defraud the state when it failed to submit employee payroll withholding taxes for nearly six years.</p>
<p>The document says former members of the ACORN board of directors approached state officials with claims that the group was breaking laws &#8220;related to the filing of employee withholding taxes, failing to report an embezzlement of nearly $1 million by the brother of the founder&#8230;., obstructing justice and violations of the Employee Retirement Security Act.&#8221;</p>
<p>The obstruction allegation comes from the failure to report Dale Rathke&#8217;s improper charges, and the retirement-account contention refers to the possible illegal use of money in those accounts for ACORN employees.</p>
<p>It seeks myriad financial records dating from 1998 from Citizens Consulting regarding ACORN and all related entities, such as income paid on behalf of all ACORN affiliates, all financial audits and statements, a list of all employees for each related group, notices of tax liens and all tax returns.</p>
<p>The subpoena also focuses on Dale Rathke&#8217;s actions, seeking information &#8220;detailing the theft of funds by Dale Rathke&#8230;and failure to report the theft to the proper law enforcement agencies.&#8221; It also demands records &#8220;dealing with the issue of Dale Rathke&#8217;s illegal use of employee benefit funds&#8221; and &#8220;records that detail all of the funds received by Dale and Wade Rathke in either income, benefits, use of properties, credit cards or other accounts, loans or other means of deferred compensation.&#8221;</p>
<p>Regarding the tax many tax liens filed against ACORN and related groups, the subpoena said that &#8220;a substantial portion&#8221; of the $306,000 owed was not paid until &#8220;bank accounts were levied.&#8221;</p>
<p>Records in the Orleans Parish Clerk of Courts Office shows that ACORN-related entities still owe more than $1.5 million in federal taxes, as well as about $30,000 in state taxes. The most recent filing from the IRS was recorded last month for more than $500,000. It makes a claim on the ACORN building on Canal Street until the debt is paid.</p>
<p>Most liens stem from payroll taxes withheld from employees but not submitted to the state or the IRS. The $306,000 bill from the state says payments were missed in 66 tax periods, from 2002 through mid-2008.</p></blockquote>
<p>Original story <a href="http://www.pelicaninstitute.org/files/pdf/PELICAN%20NEW%202.pdf">here</a>.</p>
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		<title>ACORN’s Lawless Ways</title>
		<link>http://biggovernment.com/mvadum/2009/09/14/acorns-lawless-ways/</link>
		<comments>http://biggovernment.com/mvadum/2009/09/14/acorns-lawless-ways/#comments</comments>
		<pubDate>Mon, 14 Sep 2009 16:05:18 +0000</pubDate>
		<dc:creator>Matthew Vadum</dc:creator>
				<category><![CDATA[ACORN]]></category>
		<category><![CDATA[ACORN 8]]></category>
		<category><![CDATA[Amy Busefink]]></category>
		<category><![CDATA[Amy Schur]]></category>
		<category><![CDATA[Bertha Lewis]]></category>
		<category><![CDATA[Christopher Edwards]]></category>
		<category><![CDATA[Citizens Consulting]]></category>
		<category><![CDATA[Dale Rathke]]></category>
		<category><![CDATA[Inc.]]></category>
		<category><![CDATA[Industrial Workers of the World]]></category>
		<category><![CDATA[Karen Inman]]></category>
		<category><![CDATA[Las Vegas]]></category>
		<category><![CDATA[Las Vegas Sun]]></category>
		<category><![CDATA[Liz Wolf]]></category>
		<category><![CDATA[National Labor Relations Board]]></category>
		<category><![CDATA[New Orleans]]></category>
		<category><![CDATA[Rep. Darrell Issa]]></category>
		<category><![CDATA[Sandra Stewart]]></category>
		<category><![CDATA[Sarah Manowitz]]></category>
		<category><![CDATA[SEIU Local 100]]></category>
		<category><![CDATA[Steve Kest]]></category>
		<category><![CDATA[voter fraud]]></category>
		<category><![CDATA[Wade Rathke]]></category>

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		<description><![CDATA[ACORN is not only a radical organization devoted to undermining the American system of government: It is a massive, ongoing criminal conspiracy that should be investigated for possible violations of federal racketeering laws.
With a long history of lawbreaking that is finally getting media attention, the poverty pimps of ACORN are currently in retreat across the nation, [...]]]></description>
			<content:encoded><![CDATA[<p>ACORN is not only a radical organization devoted to <a href="http://townhall.com/columnists/MatthewVadum/2009/09/10/acorn_exposed_stealing_democracy">undermining the American system of government</a>: It is a massive, ongoing criminal conspiracy that should be investigated for possible violations of federal racketeering laws.</p>
<p>With a long history of lawbreaking that is finally getting media attention, the poverty pimps of ACORN are currently in retreat across the nation, and an upcoming voter registration fraud trial may reveal embarrassing information that disrupts the operations of the embattled radical activist group. This is in addition to the <a href="http://spectator.org/blog/2009/09/14/pimpin-aint-easy-but-it-sure-i">undercover child prostitution sting videos</a> revealed in recent days on this website.</p>
<p>The testimony will come soon from former ACORN Las Vegas field director Christopher Edwards. <a href="http://spectator.org/blog/2009/05/04/nevada-vote-fraud-charges-for">Charged with election fraud</a> by Nevada’s Democratic attorney general, he cut a deal last month with prosecutors and has pleaded guilty to two counts of conspiracy to commit the crime of compensation for registration of voters.</p>
<p><img class="aligncenter size-full wp-image-1974" src="http://biggovernment.com/files/2009/09/ACORN-Raided.jpg" alt="ACORN Raided" width="454" height="371" /></p>
<p>Sentencing is scheduled for Nov. 17.</p>
<p>ACORN stands accused of enforcing voter registration quotas with its employees and offering bonuses for extra registrations. Nevada law forbids the use of such incentives on the theory it encourages canvassers to file fraudulent registrations. No wonder: ACORN registers “Mickey Mouse” and various celebrities, out-of-state residents, and dead people, every election cycle.</p>
<p>As part of the plea deal, Edwards, whom state investigators consider to be the mastermind of the incentive program, has <a href="http://www.lasvegassun.com/news/2009/aug/18/deal-ex-acorn-official-cops-voter-quota-scheme/" target="_blank">agreed to testify</a> against former regional director, Amy Busefink, and against ACORN, which is a co-defendant. The <em>Las Vegas Sun</em> reported that Edwards acknowledged he conspired with Busefink and ACORN to create the “Blackjack” incentive program that gave canvassers an extra $5 for submitting 21 or more registration cards each day. The daily quota was allegedly 20 forms.</p>
<p><span id="more-1970"></span></p>
<p>If ACORN (Association of Community Organizations for Reform Now) happens to be convicted, it could have its status as a nonprofit corporation revoked in Nevada, which could make it very difficult for the ACORN network to operate in that key battleground state.</p>
<p>Such a conviction would send shock waves through leftist organizing circles across the nation and might embolden more prosecutors to take on ACORN. Until it was charged by Nevada this year, ACORN had boasted about its ability to duck prosecution for election fraud.</p>
<p>Amy Schur, a senior ACORN official who has been in charge of the group&#8217;s national campaigns, is likely to testify in the Nevada case, said Karen Inman of St. Paul, Minnesota, a former member of ACORN&#8217;s national board.</p>
<p>Schur&#8217;s testimony might be devastating to ACORN because it provide a public airing of many of the group&#8217;s skeletons, suggested Inman, a lawyer by training.</p>
<p>That&#8217;s because Schur has intimate knowledge of how ACORN operates and was one member of a group within ACORN including then-chief organizer and founder <a href="http://spectator.org/archives/2009/07/16/wrathful-wade-rathke">Wade Rathke</a> that covered up a nearly $1 million embezzlement by Rathke&#8217;s brother, Inman said. Wade Rathke was fired by the board last summer and ordered to sever all ties with ACORN. He has failed to do so. He is still, for example, chief organizer of SEIU Local 100 in New Orleans, an ACORN affiliate he founded.</p>
<p>Inman herself was ousted from the national board by management last fall after she asked too many questions about the embezzlement. Now she&#8217;s one of the leaders of the “<a href="http://www.acorn-8.net/" target="_blank">ACORN 8</a>,” a group of former ACORN members trying to reform ACORN.</p>
<p>Inman also made the point that ACORN is in turmoil throughout America.</p>
<p>Liz Wolf of Citizens Consulting Inc. (CCI), the shadowy financial nerve center of the ACORN network, has been negotiating with tax collectors on behalf of ACORN to have interest on its tax debts waived and to have some of the debts partially forgiven, Inman said.</p>
<p>CCI alone owes at least $400,000 in <a href="http://www.capitalresearch.org/blog/wp-content/uploads/2009/08/cci-tax-liens-pending-aug-15-2009.pdf" target="_blank">back taxes</a> to the IRS, various states, and the District of Columbia. Collectively, the many affiliates within the ACORN network owe <a href="http://spectator.org/archives/2008/10/28/lien-on-me">millions of dollars</a> to tax authorities. The tax debts remain even after ACORN took a controversial payment from a developer in exchange for the group&#8217;s support for a sports stadium and mixed-use complex in <a href="http://spectator.org/archives/2009/07/09/acorn-sells-out-the-poor">Brooklyn</a>. (The Pelican Institute recently <a href="http://www.capitalresearch.org/blog/2009/08/26/pelican-institute-liens-on-acorn/">unearthed</a> $1 million in ACORN tax debts.)</p>
<p>Experts say the taxes owed are probably employment taxes, the same taxes used to support the Big Government programs that ACORN is so enamored of. Always resourceful, ACORN is using its massive tax liabilities to cry poor and beg funders for more money.</p>
<p>According to Inman, so far this year ACORN has closed many of its offices nationwide. Offices in Ohio (Dayton and Columbus), Michigan (Grand Rapids), and Texas have closed their doors. The offices in Oakland, California, and in her hometown of St. Paul are barely operating, she said.</p>
<p>&#8220;This is the first time in Minnesota that the office has gone dormant after an election,&#8221; she said.</p>
<p>ACORN is moving much of its operations out of its traditional headquarters in New Orleans to New York so executive director Steve Kest and chief organizer Bertha Lewis can exercise tighter control over the whole network, Inman explained.</p>
<p>Former ACORN employees are facing trial on election fraud charges in Pittsburgh, but those charges appear to be on hold now that the <a href="http://spectator.org/blog/2009/07/23/aclu-acorn-sue-to-overturn-pen">ACLU is challenging</a> the constitutionality of Pennsylvania&#8217;s voter registration law. ACORN remains under investigation by the local Democratic prosecutor in Cleveland, Ohio, after a grand jury indicted a local man for voting illegally after being registered multiple times by ACORN. The <a href="http://michellemalkin.com/2009/08/06/acorn-watch-louisiana-investigates/" target="_blank">Louisiana attorney general&#8217;s office</a> is also investigating ACORN.</p>
<p>The Edwards plea bargain came the same week that CCI, the financial heart of the ACORN network, was accused of filing <a href="http://spectator.org/archives/2009/08/17/money-for-nothing">false lobbying disclosure reports</a> with Congress. That revelation is important because, as former D.C. ACORN housing committee member Charles Turner said earlier this year, CCI &#8220;is where the shell game begins.&#8221;</p>
<p>&#8220;ACORN has over 200 different entities that the money gets moved around to &#8211; for this purpose to that purpose, this organization to that organization,&#8221; said Turner. &#8220;We believe the way the money has been moved around, they&#8217;ve been laundering money.&#8221;</p>
<p>Federal lawmakers have known for years about ACORN&#8217;s unorthodox practices including its use of government resources to promote legislation and its extensive commingling of funds within its network of affiliates.</p>
<p>Former ACORN officials say these activities are controlled by the mysterious CCI, which is located in ACORN&#8217;s headquarters in New Orleans. CCI handles the financial affairs of hundreds of affiliates within the ACORN network. ACORN member dues, government money, and foundation grants, are all sucked into the CCI vortex often never to be seen again.</p>
<p>This summer, Rep. Darrell Issa (R-California), ranking member on the House Oversight and Government Reform Committee, sent an <a href="http://republicans.oversight.house.gov/media/pdfs/20090811ShulmanIRS.pdf" target="_blank">information request</a> to the IRS about CCI, which he noted &#8220;simultaneously managed the accounts of political and private donor-funded organizations.&#8221;</p>
<p>In the letter, Issa asked if &#8220;CCI&#8217;s co-management of various tax-exempt and non-exempt affiliate accounts, many of which receive federal funds and some of which are 527s, violate[d]&#8221; the Internal Revenue Code. His follow-up question was, &#8220;If so, has the IRS taken steps to prevent CCI&#8217;s co-management of affiliate accounts that are legally required to be separate and segregated?&#8221;</p>
<p>Issa&#8217;s committee investigators released a report last month stating that ACORN &#8220;is a shell game played in 120 cities, 43 states and the District of Columbia through a complex structure designed to conceal illegal activities, to use taxpayer and tax-exempt dollars for partisan political purposes, and to distract investigators.&#8221;</p>
<p>The report examines the ACORN network&#8217;s abusive interlocking directorates, and claims that the group deliberately organized itself to escape legal and public scrutiny. &#8220;ACORN hides behind a paper wall of nonprofit corporate protections to conceal a criminal conspiracy on the part of its directors, to launder federal money in order to pursue a partisan political agenda and to manipulate the American electorate.&#8221;</p>
<p>There is &#8220;a pattern of loose financial accounting and no firewalls&#8221; within the community-based group&#8217;s byzantine network of hundreds of affiliated groups, Issa said.</p>
<p>Although the actions and possible outcomes explored in this article aren&#8217;t likely to end up killing ACORN outright, it&#8217;s clear that the group has already used up more than a few of its nine lives.</p>
<p>Even if allegations in the Issa report don&#8217;t lead to criminal charges, it&#8217;s worth noting that the nation&#8217;s largest community-based activist organization, which claims to defend the working class, has a record of <a href="http://spectator.org/archives/2009/08/07/acorns-labor-pains">visceral, abiding hostility</a> to the very same pro-labor laws it claims to support.</p>
<p>Although it supports the continued imposition of equal employment opportunity laws on the rest of America, it argued it shouldn&#8217;t have to comply with those same laws. The Equal Employment Opportunity Commission had to sue ACORN in the 1990s to force it comply with Title VII of the Civil Rights Act of 1964, the crown jewel of the civil rights movement&#8217;s legislative accomplishments.</p>
<p>And for a group that poses as a champion of workers&#8217; rights, ACORN doesn&#8217;t treat its own workers well. What follow below are just a few select examples from ACORN&#8217;s sordid history of employee abuse.</p>
<p>The Industrial Workers of the World complained that Wade Rathke&#8217;s SEIU Local 100 sabotaged a union drive by employing union-busting techniques used by corporate America. In 2003 the National Labor Relations Board determined ACORN had unlawfully blocked its workers from organizing.</p>
<p>Fed up with long hours and paltry pay, four ACORN organizers were canned by ACORN two days after they started a union certification drive against the group in Portland, Oregon. &#8220;We felt there was a lot of deceit in the organization,&#8221; organizer Sarah Manowitz <a href="http://wweek.com/editorial/2818/2532/" target="_blank">told</a> <em>Williamette Week</em>. Employees reportedly worked 54 hours per week, including Saturdays, for annual pay of just $20,200. Two organizers said they were often paid late.</p>
<p>In 2006, $250-a-week ACORN intern Sandra Stewart told <em>Baltimore City Paper</em> that the Baltimore chapter hadn&#8217;t bothered to pay her for her work. Three other former ACORN workers told the paper that the group failed to pay them back wages.</p>
<p>A 2003 study of ACORN by the Employment Policies Institute found the group paid a wage of $5.67 per hour, which was &#8220;less than half the level demanded by many proposed &#8216;living wage&#8217; ordinances that ACORN supports.&#8221;</p>
<p>ACORN doesn&#8217;t like paying its employees overtime. In 1996 the federal Department of Labor sued Citizens Consulting Inc. (CCI), a shadowy ACORN affiliate that traditionally took care of administrative matters for ACORN. The next year a federal court ordered CCI to cough up $10,000 in back wages.</p>
<p>A 1995 court case offered a window it what ACORN thinks of itself.</p>
<p>ACORN sued the state of California seeking an exemption from the law that requires that it pay its own employees a minimum wage. The group treated its workers as if they were mendicant friars, arguing that keeping its employees in poverty helps to boost their zeal to help the poor.</p>
<p>&#8220;We have employees who come to work for us because they&#8217;re politically committed to the things we&#8217;re doing,&#8221; Steve Kest, ACORN’s executive director, said in 1996. &#8220;They do their work, then [as volunteers] they do similar work, sometimes late into the night.&#8221;</p>
<p>ACORN lost.</p>
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