Professional radical shill Peter Dreier, an Occidental College professor, has been very busy writing propaganda for his paying customer ACORN in recent days. Dreier is the driving force behind the “Cry Wolf” project, a push to encourage academics to help spread more lies about the corrupt group.

Now, taking a cue from America’s BP-Asskicking-Commander-In-Chief, Dreier affectionately oozes that the dissolving ACORN assaulted posteriors like nobody else. There was “[n]o group [that] was better at kicking ass,” Dreier writes.

What Dreier should have written was that there is no group better than ACORN – at kicking its own ass!

In a review of his friend John Atlas’s new institutional hagiography of ACORN, Seeds of Change, Dreier writes that ACORN brass “expected Obama’s victory in 2008 to give the organization even greater influence.”

But the New York Times and eeevil right-wingers spoiled the party.

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ACORN demanded and received changes to a congressional report that –surprise, surprise– fails to find ACORN did anything wrong.

Longtime ACORN lawyer Arthur Z. Schwartz sent a letter to the Government Accountability Office (GAO) which was examining federal grants to ACORN, under orders from Congress. Schwartz’s demands appear at pages 32 and 33 of the report which is called “Preliminary Observations on Funding, Oversight, and Investigations and Prosecutions of ACORN or Potentially Related Organizations.” The paper is available at GAO’s website.

ACORN’s election fraud assurance division, Project Vote, which used to employ President Obama, even threw in a few helpful suggestions in an effort to trick Americans into believing it no longer has anything to do with ACORN. Project Vote lawyer Brian Mellor’s letter appears at pages 35 and 36 of the report.

The preliminary -as in incomplete, insufficient, and downright superficial- report is less than enlightening. I got the distinct impression while reading it that its authors hadn’t actually been following ACORN’s troubled history. You can’t expect much from a federal investigation when the question posed, namely, whether some of the grants ACORN received, were misused. Instead of doing actually shoe-leather investigating, all GAO appears to have done is talked to other government agencies and compiled existing data.

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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 is attempting to perpetrate yet another spectacular fraud on the American people in order to keep tax dollars and foundation grants flowing into its coffers.

With the fallout from the hidden camera videos last fall, congressional funding of ACORN’s election fraud and racketeering business is no longer guaranteed, so ACORN is trying to pass off various state chapters as ”new” groups

As part of the radical group’s fraudulent rebranding scheme, ACORN has renamed its New York chapter New York Communities for Change. Unlike on the West coast where ACORN is at least pretending its renamed California chapter (Alliance of Californians for Community Empowerment or ACCE) is not part of the ACORN network, New York Communities for Change shares the same Nevins Street address as ACORN’s Brooklyn office.

A March 4 fundraiser for New York Communities for Change is being hosted by Debra Cooper.

Meanwhile, the Massachusetts branch of ACORN has been renamed New England United for Justice.

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The California chapter of ACORN has split from the group and changed its name.

Thousands of Californians who live in or close to poverty in the state have worked hard for decades to score victories that level the playing field. They’ve passed laws that increase affordable housing and raise the minimum wage, so they can provide for their families. They’ve also spent their personal time, which is in chronically short supply, pushing for better teachers and textbooks so the kids in their neighborhoods can have better opportunities. On these and other issues the odds have been against them, but these Californians leveraged their significant numbers with coordinated grassroots organizing to achieve victory.

Until now, they carried out this work as a chapter of the national organization ACORN. Until now, governance and financial management resided at the national level. In recent months it has become increasingly clear to the leadership, staff and members in California that the serious challenges ACORN is facing are jeopardizing the important work we are doing here in California.

The new entity will be called Alliance of Californians for Community Empowerment (ACCE). It will, on paper at least, be entirely separate now from ACORN. The relationship will be what Wade Rathke characterized the relationship between ACORN and ACORN Housing. ACORN is its own entity and ACCE is its own entity and the two are fighting for common goals.

It’s important to note that most, if not all, of the staff and board of ACORN in California will be kept on with the new company. In fact, at the bottom of the press release the contact person is Amy Schur. Schur, according to a source, was privvy to the knowledge that Dale Rathke had been involved in embezzlement from ACORN and kept that knowledge from the board.

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The “independent” investigation of ACORN has been completed, and the final report is in.

The verdict? ACORN has done nothing illegal, and most of its problems stem from the subpar leadership of its founder and former “chief organizer,” Wade Rathke. As long as Rathke and his allies are out of the picture, everything should be good to go at ACORN headquarters, according to Scott Harshbarger, former attorney general of Massachusetts.

I get the feeling Mr. Harshbarger produced exactly the type of report (which can be viewed at ACORNcracked.com) that the ACORN board of directors paid him to produce: a rationalization of the group’s behavior, designed to deflect the growing chorus of criticism and breathe new life into the organization.

I doubt that anybody will be fooled by the silly conclusions in Harshbarger’s report. But I fear that ACORN’s friends in the White House and Congress may use it as an excuse to allow the organization back into the federal government’s good graces.

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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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I was driving to my local OSH hardware store in West L.A. yesterday to buy some tools for the house where I spotted an ACORN rally across the street at some FOX studio.  After buying some supplies, I went into my car to get the brand new hand-held HD video camera I had purchased just the night before for an upcoming vacation.  With camera in hand, I walked towards the protesters to gather some pictures and video footage of the rally.  I also called my friend Andrew Breitbart and suggested he come down. I had a feeling he’d be interested.

But before he could make it to the rally, an ACORN organizer had crossed the street and approached me with an ACORN flyer in her hand.  As she started to talk, I clicked the record button of the new camera I had bought on a whim, not knowing what it would capture or how it even worked, for that matter. I heard the same things you will now hear on this recording.  Three minutes later I walked away in shock.  I started to tremble from what she admitted to me with utter nonchalance.  I walked inside a nearby store and found a quiet place to play the tape for myself and realized that I had wintessed something maybe no one was ever supposed to hear:

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Follow along with the transcript:

Have you seen this organizer?

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Today I received a phone call from my friend, Gary H., who said that ACORN was staging a protest outside the Fox News studios in West Los Angeles. I called someone at the Fox News bureau to find out that there were no protesters there, but quickly realized ACORN had gotten that wrong too. They were protesting in front of FOX Television Center, the home of local affiliate KTTV.

Since I woke up to the news that ACORN had sued the U.S. government to get its federal funding back, it struck me as obvious that ACORN is in the process of trying to get its mojo back absent any real investigations by the Holder Justice Department, the Democratic-controlled Congress, and the Jerry Brown sham investigation in California – not to mention the  so-called “internal investigation” whose chief investigator was picked by number one ACORN defender, John Podesta, and SEIU head Andy Stern, whose union is deeply aligned with the troubled “community organizing” group.

Despite all the evidence we have published that exposes ACORN as both corrupt and criminal, no other mainstream media organization has shown any signs of investigating ACORN despite countless angles and document trails.  So I knew I had to go down to the protest on Bundy Drive to ask ACORN protesters a few questions.

With very little time I got in the car with Big Government Associate Editor Alex Marlow to meet Gary H. down at the protest. When we arrived, the protesters were fifty or so strong, monitored by a few police units standing to the side. Given that the police made me feel safe, I walked straight toward the chanting protesters while accepting an ACORN full-color single page handout entitled, “ACORN MEMBERS — MAKE A DIFFERENCE IN  THEIR COMMUNITIES,” which sung the praises of the organization. (more…)

Story filed by the Pelican Institute’s Steve Beatty:

Amid the paperwork associated with a search warrant served on ACORN’s New Orleans headquarters Friday is a one-sentence acknowledgement by the embattled activist group’s attorneys that it is has been subpoenaed by a federal grand jury.

“Regarding the federal grand jury subpoenas, ACORN does not object to the provision of information and documents to the federal government…” reads a letter from Abbe David Lowell of the Washington law firm of McDermott, Will & Emery. 

The letter was included in court filings from ACORN explaining the legal basis for why they weren’t complying with a subpoena issued by Louisiana Attorney General Buddy Caldwell, which seeks a wide range of accounting information regarding the group’s many affiliated agencies. 

Lowell disclosed the federal investigation as he was writing to a New Orleans lawyer representing ACORN’s local outside accountants. The accounting firm of Duplantier, Hrapmann, Hogan & Maher was served with a subpoena from Caldwell, and, apparently, at least two from federal officials. In the letter, Lowell said ACORN was asserting accountant-client privilege, which is recognized in Louisiana, but not at the federal level.

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Citigroup executive Eric Eve (pictured below) has resigned from ACORN’s phony, allegedly independent panel of inquiry, a move that removes one of the few people on the panel who could even remotely claim to actually be independent.

If you read between the lines, it also seems to mean Citigroup agrees the panel is a sham.

Eve, senior vice president of Global Consumer Group, Community Relations, at Citigroup, quit after the National Legal and Policy Center pressed Citigroup CEO Vikram Pandit to cut ties with ACORN.

In a letter to NLPC president Peter Flaherty, Citigroup announced Eve’s resignation from the panel.

“We too are deeply concerned about the recent media reports regarding ACORN and, because of those reports, have suspended our charitable financial support and program relationships with ACORN, and we are awaiting the results of the independent audit of ACORN activities now underway,” wrote Natalie Abatemarco, Citigroup’s vice president, Global Community Relations.

“On a related topic, please be advised that Eric Eve has resigned his position on the ACORN Advisory Council,” she added.

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Did ACORN chief organizer Bertha Lewis say anything that was true in her recent speech at the National Press Club?

The embattled ACORN CEO deserved an Academy Award nomination for her virtuoso performance in which she not only depicted ACORN as an innocent victim but also as a whistleblower that tried to nip the subprime mortgage crisis in the bud.

She blamed everyone but herself: “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.”

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.”

Lewis’s statement about the Republican National Committee was immediately torpedoed by RNC chairman Michael Steele who defended ACORN.

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In the wake of a series of embarrassing hidden-camera exposes and mounting congressional pressure to cut off its federal funding, Bertha Lewis, CEO of the Association of Community Organizations for Reform Now announced that ACORN will seek independent review.  However, the ACORN review which followed the million dollar Rathke embezzlement was merely a smokescreen; eight former ACORN board members previously sought a complete forensic examination of ACORN and its related entities followed by an independent audit from a Big Four accounting firm.

Lewis noted that ACORN’s advisory council would assist her in choosing an outside auditor, former Massachusetts Attorney General Scott Harshbarger. The ACORN advisory council includes John Podesta, head of the Center for American Progress, a liberal think tank; Andrew Stern, president of the Service Employees International Union; and former Maryland Lt. Gov. Kathleen Kennedy Townsend.

“As a result of the indefensible action of a handful of our employees,” Lewis said in a statement, “I am, in consultation with ACORN’s Executive Committee, immediately ordering a halt to any new intakes into ACORN’s service programs until completion of an independent review.” Mind you, these are the same senior staff and executive committee members who concealed and covered up a million dollar embezzlement, but who themselves were never terminated.

Besides, ACORN already had its chance to do the right thing following the Rathke embezzlement when the board of directors appointed an interim management committee to investigate this fraud and reorganize ACORN. So what happened the last time that ACORN claimed to put in place its own internal management committee? (more…)

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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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.

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…)