Despite its recent setbacks, the renamed ACORN network remains well positioned to receive support from left-leaning foundations, corporations, unions and the federal government, according to a whistleblower group comprised of former board members. Moreover, the existing financial apparatus that made it possible to transfer public money away from their stated purpose and into partisan political efforts remains intact.

The American Institute of Social Justice (AISJ), one of four national affiliates, deserves greater scrutiny and attention in this area. Over $53 million was transferred between ACORN and AISJ from 2000-2004, according to a report from the House Oversight Committee.

ACORN was also on the receiving end of a $4,952,288 grant from AISJ, according to the Institute’s 990 tax form for 2006. This is instructive because AISJ itself received almost $4 million from ACORN Housing Corp. (AHC) between 2000 and 2006, tax documents show.

“The money flowing to AISJ from ACORN Housing should be a huge red flag for investigators because almost all the federal money that the ACORN network receives goes into its housing affiliate,” Matthew Vadum, a senior editor with the Capital Research Center (CRC) observes. “So it’s entirely possible that when money was being transferred to the national ACORN organization from AISJ, taxpayer money designated for nonpartisan purposes might have been used for blatantly partisan purposes. These transfers are extremely suspicious. This is the type of financial activity that we see with organized crime and it should be investigated.”

On April 1, ACORN’s leadership announced it was dissolving its national network, but in reality the national affiliates and their many state level counterparts are simply remarketing and rebranding themselves, former insiders have warned.

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The ACORN crime syndicate is not going away anytime soon, but it’s going to look different.

ACORN will probably run out of money and fold by year’s end but a dozen ACORN state chapters reincorporated to seem like new, independent organizations will spring up in the next week to carry on ACORN’s business, a leaked email from ACORN’s online director suggests.

“The truth is that it is hard for us to forsee [sic] any scenario where ACORN continues beyond the end of 2010 and some of us think it might not last that long,” writes Nathan Henderson-James, director of ACORN’s online campaigns, in an apparently authentic Feb. 22 email.

“Last one to leave turn out the lights and wipe the server,” he writes at the end of the message.

In the email Henderson-James explains the subterfuge ACORN will use to lead Americans to believe ACORN is breaking apart.

“It is definitely true that over the next week or so we should see a dozen or more organizations launched on the state level by staff who used to work for ACORN and leaders who developed their skills as ACORN members. These are not just simple name changes, but reimaginings of how best to organize low and moderate income constitiuencies [sic] without any of the legal problems and funding issues dogging ACORN, not to mention the brand damage.”

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ACORN is no stranger to shady lobbying practices.

Months before GOP  investigators on the House Oversight and Government Committee revealed that ACORN appears to be lobbying illegally in Delaware, a former ACORN employee alleged ACORN violated federal lobbying laws.

The ex-ACORN employee, Ron Sykes, said that Citizens Consulting Inc. (CCI), the shadowy financial nerve center of the ACORN network, filed false lobbying disclosure reports with Congress.

This is important because, as former ACORN national board member Charles Turner said earlier this year on “The Glenn Beck Program,” CCI “is where the shell game begins.”

“ACORN has over 200 different entities that the money gets moved around to – for this purpose to that purpose, this organization to that organization,” said Turner. “We believe the way the money has been moved around, they’ve been laundering money.”

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The internal report issued by former Massachusetts Attorney General is out. Clearly, here’s what the headline will be.

The high-profile lawyer hired to investigate ACORN has found no pattern of intentional illegal conduct in the community organizing group — a finding that was dismissed as “damage control” by one of the two filmmakers who, posing as a pimp and prostitute, videotaped staffers offering advice on how to operate a brothel .

This was immediately mocked by conservatives in the media.

Harshbarger has determined — wait for it — that ACORN engaged in no wrongdoing
depicted in the nationwide undercover stings conducted by BigGovernment.com / James O’Keefe III and Hannah Giles.

In fact, everyone is getting into word games here. ACORN did in fact engage in no criminal wrongdoing by offering advice to a “pimp” and “prostitute” about how to hide assets and their business practices. Simply offering such advice is not illegal. If that’s what Harschbarger was brought in to do, I could have saved everyone plenty of time. In fact, if that’s what he was investigating, then it’s clear they gave him a scope that would lead to a conclusion that would maximize their positive press. In fact, these videos occurred at no less than five offices. That’s a pattern of behavior for which management, and not merely those on the videos, must take some responsibility. That’s at the heart of the series of exposes by Giles and O’Keefe. It’s not about whether or not the behavior on the videos is or is not technically legal. It’s about what it says about an organization when a “pimp” and “prostitute” can so routinely walk into just about any office and be offered advice that the advisor knows is illegal if implemented. That reality is barely acknowledged and not really addressed.

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Yesterday, I finished the third part of my interview with Wade Rathke. I felt, correctly, or not that after spending several hours with Rathke, that I was starting to understand Rathke, his vision, and his goals. So, I tried to make these questions as pointed and interesting as possible.

1) What can the local, state, and federal government do right now to help the poor and middle class?

The answer that Rathke gave was both surprising and impressive. I expected him to rattle off several laws that could be implemented, maybe a moratorium on foreclosures, and other policy changes that he believed in. Instead, Rathke was practical and pithy.

He said that all government programs: unemployment insurance, welfare, etc. should be streamlined on the internet so that all citizens would be given access to electronic files. By doing this, the government would cut all sorts of red tape and save those in need all sorts of time and energy in receiving these benefits. For the money the government would spend in implementing these systems, the benefit to the people would come back ten fold.

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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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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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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…)

“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…)

ACORN’s CEO, Bertha Lewis announced last week that the group will seek an independent review of its operations. ACORN also announced that former Massachusetts Attorney General Scott Harshbarger would oversee the review. Although it seems difficult to imagine that the credentials of an attorney could allay public skepticism about the ethics of ACORN—especially in an era where lawyer-dominated institutions are frequently enmeshed in scandal—the professional background of Harshbarger makes him possibly the right person for the job.

That is, if ACORN—and Bertha Lewis—let him do the job.

Bertha Lewis is among the ACORN senior staff and Executive Committee members who actively concealed an apparently million dollar embezzlement from the organization by Dale Rathke, brother of ACORN founder and Lewis’ predecessor Wade Rathke.  So it is hard to believe Scott Harshbarger’s first line of business will be recommending or otherwise arranging for ACORN to fire Bertha Lewis and all her admitted, embezzlement concealing co-conspirators.

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Citizens Consulting Inc. (CCI), the shadowy financial nerve center of the embattled radical activist group ACORN, has filed false lobbying disclosure reports with Congress, according to Ron Sykes, a former ACORN employee.

This revelation is important because, as former ACORN national board member Charles Turner said earlier this year on “The Glenn Beck Program,” CCI “is where the shell game begins.”

“ACORN has over 200 different entities that the money gets moved around to – for this purpose to that purpose, this organization to that organization,” said Turner. “We believe the way the money has been moved around, they’ve been laundering money.”

ACORN founder Wade Rathke (left) and ACORN enabler Drummond Pike (right) of Tides Foundation in an undated photo taken in Peru. On the wall is a large poster of Communist icons Che Guevara and Fidel Castro.

When former ACORN activist Ron Sykes was informed by this reporter that ACORN affiliate CCI registered him as a lobbyist, he was angry. “It’s like identity theft,” said Sykes in an interview. “I have no idea why they registered me. I didn’t register myself and was not aware that they were doing it.”

Whether this reflects ACORN’s institutional carelessness or a calculated effort to deceive, the discovery throws some light on how ACORN treats its employees, moves money around the ACORN network, and deals with the federal government. Federal lawmakers have known for years about ACORN’s unorthodox and possibly illegal practices, including its use of government resources to promote legislation and its extensive commingling of funds within its network of affiliates.

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The announcement by ACORN that it is creating a panel of inquiry consisting of its corrupt friends is a fairy tale. ACORN did the same thing last year after an internal scandal but when the honest people on ACORN’s internal panel began asking uncomfortable questions, it cast them out.

Since it’s a fairy tale, let me tell the story the fairy tale way:

Once upon a time there was a group called the Association of Community Organizations for Reform Now (ACORN). It was run, and continues to be run today, by very bad people who do very bad things while they pretend to make America a better place.

They get very upset when people point out the bad things they do. They always lie about those things and call those people who speak against them nasty names like “racist” so those people will get scared and run away. Often it works.

They carry out voter registration drives strictly with a view to meeting predetermined quotas. They don’t give a farthing’s cuss if their canvassers register Mickey Mouse or the dead to vote; in fact, they encourage it. As long as the big fat checks keep coming in from billionaire leftist George Soros and Herb and Marion Sandler everything is OK in their eyes.

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