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ACORN’S Enron-Style Accounting: Playing Musical Chairs with Big Money

The activities of the radical, corrupt to the core, left-wing Association of Community Organizations for Reform Now, which has tangled itself up in an infinitely complex web of deceit, thuggery, and questionable financial dealings, are long overdue for a RICO probe.

Recent well-publicized events that I need not recount here show ACORN’s criminal propensities. In a moment I’ll explain how ACORN’s financial affairs ought to raise a red flag for investigators at the U.S. Department of Justice, but first some background.

ACORN_ENRON

The Racketeer Influenced and Corrupt Organizations (RICO) Act, which was created to prosecute organized crime, allows the federal government to go after individuals who commit any two RICO-related crimes over a decade. The law allows courts to convict persons if it can be shown that they committed those crimes as part of an illegal enterprise and can order disgorgement of their ill-gotten gains from the enterprise.

RICO is the right tool for the job.

Perhaps it’s the only tool for the job because the ACORN network is deliberately structured to deter scrutiny. Its nebulous legal status and opaque corporate structure allow it to keep its activities largely hidden from public view.

The social justice entrepreneurs of ACORN sit on the boards of ACORN and of ACORN affiliates. Many, many, many of them.

These “interlocking directorates” create an appearance of conflict of interest. Such arrangements may be widespread and lawful, but they always raise legitimate questions about the quality and independence of board decision-making. The ACORN network claims to be a “family” of organizations embodying the ethos of community organizing, which stresses local action and decentralized authority.

In fact, ACORN is tightly controlled from the top. One blogger discovered last year that 294 ACORN affiliates operate out of ACORN’s building on Elysian Fields Avenue in New Orleans.

ACORN’s many affiliates have extraordinarily sophisticated financial arrangements that are largely hidden from public view. ACORN uses its system of interlocking boards of directors to oversee its affiliates and make financial mischief.

As Jim Terry of the Consumers Rights League has noted, “ACORN has a long and sordid history of employing convoluted Enron-style accounting to illegally use taxpayer funds for their own political gain.”

Look at a person named Donna Pharr. Pharr sits on the boards of at least 22 ACORN affiliates. She’s also deputy treasurer of the Minnesota ACORN Political Action Committee and is listed by Michigan as the contact person for Communities Voting Together, a “527″ pressure group.

And even now after it was revealed last year that ACORN founder Wade Rathke covered up his brother’s nearly $1 million embezzlement, Rathke remains chief organizer of ACORN affiliate SEIU Local 100, president of ACORN International Inc. (since renamed Community Organizations International), and president and a director of Affiliated Media/Foundation Movement (AM/FM) Inc., which is an ACORN affiliate that produces news segments for eight alternative radio stations.

There are plenty of other examples of directors and officers playing musical chairs throughout the ACORN empire. (See Foundation Watch, November 2008.)

Commenting on ACORN’s complex administrative arrangements, Charlotte Allen observes in the Weekly Standard, “The potential for abuse in an interlocking arrangement governed top-down from New Orleans is as obvious as a thicket of ‘Change’ signs at an Obama rally.”

ACORN takes recycling seriously, at least when it comes to money.

My research determined that ACORN affiliate Project Vote (its proper legal name is Voting for America Inc.) has funneled $16,487,690 to ACORN and other ACORN affiliates since 2000.

The $16 million-plus figure consists of $12,712,121 in direct payments to ACORN, $1,912,647 in payments to Citizens Services Inc. (CSI), and $1,862,922 in payments to Citizens Consulting Inc. (CCI).

CSI is the ACORN affiliate that the Obama campaign paid $832,598 to during last year’s primary season. The Obama campaign falsely declared in campaign finance filings that the expenditures were for “staging, sound, lighting” but corrected the record after my friend the late blogger Nancy Armstrong uncovered the truth. (Armstrong of Garden Plain, Kansas, an ardent researcher of all things ACORN, died at age 49 of a massive heart attack in late July. She ran the MsPlacedDemocrat blog so named because she became disillusioned with the Democratic Party and left it last year to become an Independent.)

CCI is the shadowy ACORN affiliate that has been called the ACORN network’s financial nerve center. CCI controls the flow of money throughout the ACORN network.

CCI is where ACORN founder Wade Rathke’s brother Dale worked. Dale Rathke embezzled almost $1 million from ACORN, and apart from having to pay the money back, got away scot-free. Big brother Wade orchestrated an eight-year coverup of the embezzlement with senior ACORN management. When the coverup fell apart last year, Wade Rathke was expelled from ACORN and until very recently law enforcement hadn’t lifted a finger to investigate.

As former ACORN official Charles Turner has said, CCI “is where the shell game begins.” CCI employees are no doubt helping to give a major shot in the arm to the document-shredding industry right now.

According to the most recent publicly available IRS Form 990 (tax return) for Project Vote, in 2007 the voter registration and get-out-the-vote outfit alone paid $1,907,592 to ACORN, $705,705 to Citizens Services Inc., and $395,260 to Citizens Consulting Inc.

Since 2000 ACORN affiliate the American Institute for Social Justice Inc. (training and publishing) paid ACORN $1,926,831, CCI $362,464, and ACORN Associates Inc. $258,593.

On its 2002 tax form, the Institute disclosed a $1,684,184 “community reinvestment” grant to ACORN, along with a $9,637 loan to SEIU Local 100. (On the same document, the Institute also reported receiving a $50,000 interest-free loan from the Tides Foundation for “purchase of equipment,” and a $4,000 interest-free loan from the George Soros-funded Open Society Institute’s Progressive America Fund Inc.) In an LM-2 (labor union disclosure) form in 2007, SEIU Local 880 revealed that it gave $60,118 to ACORN for “membership services.”

On its 2006 tax form, the American Institute for Social Justice Inc. disclosed that it provided a $4,952,288 “community reinvestment” grant to ACORN, the non-tax-exempt Arkansas nonprofit corporation that controls the ACORN network.

Why is all this money flying around the ACORN network? What could the group possibly being doing with it all? What other network of tax-exempt nonprofit entities does business this way?

ACORN may have reasonable explanations for some or all of these suspicious transactions but it has yet to offer them. In light of recent developments, these are questions it should be forced to answer.

ACORN lawyer Elizabeth Kingsley raised the alarm about interlocking directorates and the perilously close ties between ACORN and Project Vote. As the New York Times reported last fall, Kingsley found:

[T]he tight relationship between Project Vote and Acorn made it impossible to document that Project Vote’s money had been used in a strictly nonpartisan manner. Until the embezzlement scandal broke last summer, Project Vote’s board was made up entirely of Acorn staff members and Acorn members.

Ms. Kingsley’s report raised concerns not only about a lack of documentation to demonstrate that no charitable money was used for political activities but also about which organization controlled strategic decisions.

She wrote that the same people appeared to be deciding which regions to focus on for increased voter engagement for Acorn and Project Vote. Zach Pollett, for instance, was Project Vote’s executive director and Acorn’s political director, until July, when he relinquished the former title. Mr. Pollett continues to work as a consultant for Project Vote through another Acorn affiliate.

“As a result, we may not be able to prove that 501(c)3 resources are not being directed to specific regions based on impermissible partisan considerations,” Ms. Kingsley said, referring to the section of the tax code concerning rules for charities.

She also found problems with governance of Acorn affiliates. “Board meetings are not held, or if they are, minutes are not kept, or if minutes are kept, they never make it into the files,” she wrote.

Project Vote, for example, had only one independent director since it received a federal tax exemption in 1994, and he was on the board for less than two years, its tax forms show. Since then, the board has consisted of Acorn staff members and two Acorn members who pay monthly dues.

The newspaper also interviewed George Hampton and Cleo Mata, two former Project Vote board members. Both denied serving on the board and Hampton, who acknowledged he had been an ACORN member, said he had never heard of Project Vote.

Ironically, Rathke condemned interlocking directorates in the corporate world. In 1980, he endorsed the proposed “Corporate Democracy Act” which would have fined directors up to $10,000 per day for “serving more than two corporations” simultaneously. (Heritage Foundation backgrounder, March 11, 1980)

Go figure.

(This article is an updated version of an article originally published by the American Spectator.)

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Breaking (**Final Update**): Hill’s Leading Nonprofit Watchdog Sen. Charles Grassley Demands ACORN Probe

FINAL UPDATE 9/24/2009 6:50 PM Eastern time

The senior Republican on the Senate Finance Committee, Sen. Charles Grassley (R-Iowa), asked the IRS to probe ACORN – and asked that ACORN be dropped from the Combined Federal Campaign, a charitable program for government workers.

Grassley, long known as Capitol Hill’s foremost policeman of the nonprofit community, is expected to make his formal announcement this evening. In a letter the senator indicated he has been concerned about ACORN since at least 2006.

Grassley sent a letter to IRS Commissioner Douglas H. Shulman earlier today and a separate, shorter letter to John Berry, Director of the U.S. Office of Personnel Management. Both letters are available here.

In the letter to Berry, he asks that the ACORN Institute “and any other ACORN affiliates, particularly any of those reviewed by my staff, be prohibited from participating in the CFC. The acts perpetrated by ACORN employees were impermissible and should not be supported with CFC dollars.”

CFC refers to the Combined Federal Campaign, which bills itself as “the world’s largest and most successful annual workplace charity campaign.” CFC is a federally administered program that channels donations from federal civilian, postal and military employees into causes deemed worthwhile. It is unclear how much money the ACORN network receives through CFC.

In his letter to Shulman at the IRS, Grassley wrote that he was “encouraged” that IRS “severed all ties” with ACORN. “Aside from the pervasive issues pertaining to several allegations of voter fraud, the recently released investigative videos are very troubling. These videos reveal ACORN employees and/or volunteers offering tax advice specifically to further clearly illegal activities such as prostitution and human trafficking.”

Grassley wrote to the IRS in 2006 asking questions about the tax-exempt status of affiliates within the ACORN network. The IRS responded on Dec. 19, 2006, but ACORN did not, he said. ACORN’s failure to cooperate led him to have him staff investigate ACORN’s organizational structure.

In today’s letter to the IRS, Grassley asks several questions:

Please provide the number of returns prepared at ACORN tax clinics for the last five years. Does the IRS intend to review these returns for accuracy? Please confirm that IRS will terminate its relationship with all organizations in the ACORN family, particularly those reviewed by my staff. Does the IRS intend to renew its relationship with ACORN after ACORN completes its internal review?

Grassley is referring to the IRS announcement yesterday that it dropped ACORN from its Volunteer Income Tax Preparation (VITA) program, a volunteer tax assistance program through which around 3 million low- and moderate-income tax filers received free advice this year. ACORN provided help on approximately 25,000 returns, the IRS said yesterday.

Grassley also wrote “[i]t is disturbing that many of the organizations in the ACORN “family” may not actually meet the definition of related for 990 reporting purposes, even though ACORN deems them to be part of the ‘family.’” A “990” is an IRS Form 990 which is a nonprofit organization’s annual tax return.

In what may foreshadow a future demand for a forensic audit of ACORN, the senator also asks what procedures the IRS follows when “auditing organizations like this where the movement of money appears to be a shell game.” He asks, “Do IRS audit procedures require auditors to follow the money trail to or from a charitable organization to determine whether that money is being used for impermissible activities, including electioneering and promoting illegal acts?”

Finally, Grassley suggests ACORN might be a massive criminal conspiracy. He wrote:

Given what looks like a shell game perpetrated by the ACORN tax-exempt entities appears to be no different than that conducted by the charities involved in the Jack Abramoff scandal, how have IRS rules, regulations, reporting requirements and enforcement actions changed in response to the Abramoff abuses?

Grassley set an Oct. 9 deadline for the IRS to respond.

This breaking story was updated twice.

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ACORN’s Lobbying Shenanigans

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.”

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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.

Former ACORN officials say these activities are controlled by the mysterious CCI, which is located in ACORN’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.

Although CCI is registered as a nonprofit corporation in Louisiana, it does not appear to have sought tax-exempt status from the IRS. Surely it has declined to seek tax-exempt status because entities with that status have to publicly disclose financial data. This is the same approach employed by George Soros’s Democracy Alliance, a piggybank for left-wing political infrastructure that is registered as a taxable nonprofit in order to prevent public scrutiny of its finances and internal affairs.

Sykes said he came to the nation’s capital in 2006 as an intern for ACORN’s national legislative program, working for it from April 2006 to February 2007. He said he was never a lobbyist although he did help to prepare lobbyists to meet with lawmakers and their staff on issues of interest to ACORN such as voting rights, housing programs, minimum wage laws, and predatory lending. Occasionally he went along on Capitol Hill visits, but arguing for or against specific legislation was not his job, he said.

According to forms filed under the federal Lobbying Disclosure Act by CCI, Sykes lobbied as an employee of CCI on behalf of ACORN between Jan. 1, 2006 and June 30, 2007. He is described in three disclosure forms as a “fellow.” When a person ceases lobbying, the registering organization (in this case CCI) is supposed to declare this fact, but there is no indication in the online lobbying disclosure database maintained by the Office of the Clerk of the House of Representatives that CCI did so.

Sykes said he received a scholarship from ACORN to help him cover living expenses but that it was abruptly cut off months ahead of schedule in February 2007. During his internship he became curious about ACORN’s financial affairs and began to ask a lot of questions about where the money was going.

“I guess they got a little irritated and the scholarship money from the ACORN executive board was cut off,” Sykes said.

He found out that his internship was coming to a premature end when he received an email and a telephone call from the legendarily smooth Wade Rathke, who was then chief organizer (CEO) of ACORN. Rathke offered him thanks and told him that he did a great job. “I asked him if there were any positions open and said I’d like to stay but he said there was no funding at this time for a salary for me,” Sykes said.

A former senior ACORN official contacted for this article, Marcel Reid, who was a member of ACORN’s national board from October 2005 to late last year, said she and other members were unaware that CCI even did lobbying.

Legal reform advocate and lawyer Zena Crenshaw said CCI’s behavior raises several red flags.

“They certainly should be segregating 501(c)(3) funds from their lobbying activities,” said Crenshaw, a founding director and executive director of the National Judicial Conduct and Disability Law Project Inc. (NJCDLP). “I’m not sure how you can segregate them if the lobbyist is handling the money. I don’t know how CCI can be both a lobbyist and a financial manager handling ACORN’s 501(c)(3) funds.”

“This just confirms the need for an examination of the organization’s affiliates,” said Crenshaw, who is also chairperson of the legal affairs committee of ACORN 8, a group of former ACORN members co-founded by Reid that is calling for a forensic audit of ACORN.

ACORN was warned by its own lawyer Elizabeth Kingsley of Harmon, Curran, Spielberg & Eisenberg last year that its lack of internal firewalls and its chaotic organizational structure were likely to land ACORN in hot water. Kingsley’s letter to her client was excerpted in a report by Republican investigators on the House Oversight and Government Reform Committee.

The investigators found that CCI should have paid an excise tax on any lobbying expenditures it made, but noted that evidence indicates the spending was never reported to the IRS.

The investigators also found that by “intentionally blurring the legal distinctions between 361 tax-exempt and non-exempt entities, ACORN diverts taxpayer and tax-exempt monies into partisan political activities.” They argued that ACORN should be stripped of its jealously guarded tax-exempt status because it illegally spends taxpayer dollars on partisan activities, commits “systemic fraud,” and violates racketeering and election laws.

“Operationally, ACORN 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,” the report said. Structurally, it is “a chess game in which senior management is shielded from accountability by multiple layers of volunteers and compensated employees who serve as pawns to take the fall for every bad act.”

The report examines the ACORN network’s abusive interlocking directorates, and claims that the group deliberately organized itself to escape legal and public scrutiny. “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.”

ACORN uses interlocking directorates, which refers to individuals serving as directors on multiple corporate boards, in order to subject its network of affiliates to centralized control from the top. Having interlocking directorates may be widespread and lawful, but the practice raises questions about the quality and independence of board decision-making.

While the ACORN network claims to be a “family” of organizations, embodying the ethos of community organizing, which stresses local action and decentralized authority, it is run by senior officials who treat its national board as a rubber stamp.

It’s worth noting that all three lobbying disclosure forms were signed digitally by Donna L. Pharr, who is listed as CCI’s assistant treasurer. The services of the ubiquitous Pharr, herself a walking, talking example of interlocking directorates, are in demand all throughout the ACORN empire. She’s on the board of dozens of ACORN affiliates including ACORN Housing Corp. and the American Institute for Social Justice Inc. Pharr is also deputy treasurer of Minnesota ACORN Political Action Committee and is listed in a Michigan Bureau of Elections filing as the contact person for Communities Voting Together, a 527 pressure group.

CCI itself has a long and checkered past.

In 1996 the federal Department of Labor sued CCI. The next year a federal court ordered CCI to cough up $10,000 in back wages.

CCI currently owes at least $400,117 in back taxes to the IRS, Arkansas, District of Columbia, Indiana, Louisiana, and Maryland, according to the Nexis tax liens database. This figure excludes the $442,533 in tax liens that the IRS has rescinded over the past five years after they were presumably paid. Tax liens are only issued by creditor tax agencies after a tax debt has become seriously delinquent. The ACORN network has had millions of dollars in tax liens filed against it since 1989.

Last year Wade Rathke was dumped as chief organizer of the group he founded after ACORN’s national board learned that he failed to notify police when he discovered in 2000 that his brother Dale, who was a senior official at CCI, had embezzled $948,000 from the group.

Wade Rathke engineered a cover-up for his brother and allowed him to leave the payroll of CCI to work as his $38,000 a year “assistant” at ACORN headquarters. The missing money was disguised as a loan to an officer on the books of CCI.

Despite being expelled from ACORN, Wade Rathke remains involved with at least five ACORN affiliates. Rathke recently changed the name of ACORN’s international consultancy, ACORN International, to Community Organizations International. Both ACORN and Rathke maintain that COI is no longer an affiliate in the ACORN network.

Rathke also remains chief organizer of the New Orleans-based Local 100 of SEIU, another ACORN affiliate he founded. He does not appear to have stepped down as president and director of Affiliated Media Foundation Movement (AM/FM), an ACORN affiliate that produces news segments for eight alternative radio stations. He is also publisher and editor-in-chief of Social Policy magazine, a quarterly journal published jointly by two ACORN affiliates (ACORN Institute and American Institute for Social Justice).

And Rathke’s family members remain employed by ACORN. His common law wife, Beth Butler, and his son and daughter still work for ACORN. Butler is ACORN’s regional director for the Southeast U.S.

(This article was originally published by the American Spectator on Aug. 17, 2009.)

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NEA Conference Call: Who is Buffy Wicks?

Buffy

My sources in the progressive movement say Buffy Wicks handled the Obama campaign in Missouri last year. Obama lost in Missouri and activists in that state and people within the Obama campaign placed the blame for the defeat squarely on her shoulders. 

After failing to win Missouri for Obama, Wicks had a very hard time finding a job but somehow she landed a job in the Obama White House. It’s unclear how she did that.

 Wicks has indirect ties to ACORN. She worked with ACORN but apparently not for ACORN. A HuffPo writer lavishes praise on her for her abilities as an organizer.

 

Wicks used to work for Wake Up Wal-Mart (wakeupwalmart.com), which is not a formal affiliate of ACORN but is an ACORN-sponsored spinoff group. The group works very closely with ACORN and is modeled after ACORN’s own anti-Wal-Mart affiliate W*A*R*N* (Wal-Mart Alliance for Reform Now).

 Wake Up Wal-Mart entered into a national partnership with ACORN in 2005. In a Wake Up Wal-Mart press release from 2005, ACORN national president Maude Hurd said: “This is a new day in the fight to change Wal-Mart. We have created an unprecedented, bottom-up force for change which will demonstrate why Wal-Mart needs to change now.”

The group’s legal name is Change Wal-Mart Association. It has a Federal Employer Identification Number (FEIN) of 20-2643179. It is a 501(c)(5) nonprofit, which means it is a labor-oriented organization. The group was formed in 2006 but no tax return (IRS Form 990) is available for the group at guidestar.org. This is unusual.

Donations to the group do not appear in philanthropy databases. Fortune reports that the group is funded entirely by UFCW.

Nexis reports that its office address is 1775 K St. NW, Washington DC 20006. This is the same address as the United Food and Commercial Workers International Union (UFCW). This is not surprising because Wake Up Wal-Mart is a project of UFCW.

Wicks is identified as a Wake Up Wal-Mart employee in a press release issued by the group.

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NEA Conference Call: Who is Buffy Wicks?

Buffy

My sources in the progressive movement say Buffy Wicks handled the Obama campaign in Missouri last year. Obama lost in Missouri and activists in that state and people within the Obama campaign placed the blame for the defeat squarely on her shoulders. 

After failing to win Missouri for Obama, Wicks had a very hard time finding a job but somehow she landed a job in the Obama White House. It’s unclear how she did that.

 Wicks has indirect ties to ACORN. She worked with ACORN but apparently not for ACORN. A HuffPo writer lavishes praise on her for her abilities as an organizer.

 

Wicks used to work for Wake Up Wal-Mart (wakeupwalmart.com), which is not a formal affiliate of ACORN but is an ACORN-sponsored spinoff group. The group works very closely with ACORN and is modeled after ACORN’s own anti-Wal-Mart affiliate W*A*R*N* (Wal-Mart Alliance for Reform Now).

 Wake Up Wal-Mart entered into a national partnership with ACORN in 2005. In a Wake Up Wal-Mart press release from 2005, ACORN national president Maude Hurd said: “This is a new day in the fight to change Wal-Mart. We have created an unprecedented, bottom-up force for change which will demonstrate why Wal-Mart needs to change now.”

The group’s legal name is Change Wal-Mart Association. It has a Federal Employer Identification Number (FEIN) of 20-2643179. It is a 501(c)(5) nonprofit, which means it is a labor-oriented organization. The group was formed in 2006 but no tax return (IRS Form 990) is available for the group at guidestar.org. This is unusual.

Donations to the group do not appear in philanthropy databases. Fortune reports that the group is funded entirely by UFCW.

Nexis reports that its office address is 1775 K St. NW, Washington DC 20006. This is the same address as the United Food and Commercial Workers International Union (UFCW). This is not surprising because Wake Up Wal-Mart is a project of UFCW.

Wicks is identified as a Wake Up Wal-Mart employee in a press release issued by the group.

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Once Upon an ACORN: Why ACORN’s Internal Audit is a Sham

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.fairy 3

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.

They always throw temper tantrums. They blackmail corporations and hold sit-ins at banks until they get their way. They take over forums and congressional hearings by force. When the police get involved they say that they are the real victims: Why are you arresting us? That’s not fair! They pretend to want to help the poor and then throw them overboard by taking massive “grants” from wealthy real estate developers.

Years ago Wade Rathke and his brother Dale Rathke did terrible things that were far worse than all the other things they’d done. Dale, who worked for ACORN, stole close to $1 million. Big brother Wade covered up the whole thing and the senior management at ACORN helped him.

Bertha Lewis, a lady who is now ACORN’s chief organizer, helped the Rathkes cover up Dale’s theft, but she was only one of the management people who helped out. Others helped their boss too.

When Dale’s embezzlement was discovered last year, Wade was forced out of ACORN by ACORN’s national board. It told Wade to stop affiliating himself with ACORN but he didn’t listen. He’s still chief organizer of ACORN affiliate SEIU Local 100 in New Orleans and he’s still trying to bring community organizing to far away places like India and Kenya. Maybe he’ll help President Obama’s half-brother, George Hussein Onyango Obama who lives near Nairobi. That would be nice, wouldn’t it? George is very poor.

Anyway, back when Wade was kicked out of ACORN the group’s national board appointed three board members to investigate the bad things that Wade and Dale did. Together the three people were called the Internal Management Committee (IMC). One of them is a very smart lady named Marcel Reid. Marcel’s father wanted a boy so he gave her that name. She likes her name even though it is a boy’s name.

Marcel started asking questions about the embezzlement, which is what the board told her to do. But when she asked to look at documents related to the embezzlement, management said no. She tried and tried and tried but they still said no. They got very upset with Marcel. Eventually they threw her out of ACORN even though she didn’t anything wrong. They called her a traitor. She was sad.

Now Bertha Lewis, who helped Wade and Dale cover up Dale’s embezzlement, wants the same kind of committee packed with corrupt friends of ACORN to whitewash all the institutional corruption that is the essence of the ACORN network. The network consists of, um, well, nobody knows how many hundreds of individual affiliated groups.

Bertha says that the panel will include

* John Podesta, President and CEO, Center for American Progress

* Kathleen Kennedy Townsend, Board Member, RFK Foundation, former MD Lt. Governor

* Andrew Stern, International President, Service Employees International Union

* Henry Cisneros, Executive Chairman, Cityview

* John Banks, Vice President of Government Relations Con Ed

* Eric Eve, Senior VP of Global Consumer Group, Community Relations, Citigroup

* Harvey Hirschfeld, President, Lawcash

*Dave Beckwith, Executive Director, Needmor Fund

Bertha says the panel will be independent and will do a really good job recommending what should be done to fix ACORN. The problem is Bertha, who is only a figurehead anyway, has been lying for so long she might not even know what’s true and what’s false. That happens when you lie a lot, so you should always tell the truth.

The panel is filled with hardcore leftists who don’t like America’s Constitution and free markets. They want America to be more like France where they eat cheese, or maybe a little like the old Soviet Union where they ate each other. They hate freedom and will do anything to stamp it out. They believe the ends justify the means.

Hey, that’s just like ACORN and its spiritual grandfather, Saul Alinsky, isn’t it? He was very sneaky and very smart.

There’s John Podesta, who was President Clinton’s White House chief of staff. He’ll do anything that needs to be done to protect ACORN because ACORN is very important to progressives. If ACORN were to disintegrate, it would be like losing several army divisions when you’re fighting a war. That would be bad, liberals think.

Kathleen Kennedy Townsend is not very nice. She is mean. When she ran for governor in Maryland, an overwhelmingly Democratic state, she managed to completely mess things up. She loves calling people racists. It’s what she does. It’s one of the reasons people didn’t like her in Maryland even though she’s a Kennedy, and everybody loves Kennedys.

Andy Stern of SEIU is a longtime crusader for something called “social justice.” Social justice is when you have more toys than your friends, so your friends hit you over the head and take some of your toys away. That way everyone is equal. That’s social justice.

Marcel Reid isn’t buying any of this.

Marcel, who is now a member of a reform group called ACORN 8, told me this earlier today:

As former members of the Interim Management Committee elected by the national board of ACORN, we say that all of the things that this so-called independent panel is going to examine are things that we tried to accomplish. We called for all of these things –an audit, examination of the books, restructuring of the organization— all of this was already demanded by us.

And because we were trying to exercise due diligence as duly constituted directors of ACORN, we were relieved from our positions, forced out by the board under Bertha Lewis’s direction.

We have no idea how an independent, thorough audit of ACORN can be conducted by these people who were not selected by ACORN’s national board but were put in place by the same senior staff who conspired with Wade Rathke to cover up his brother’s embezzlement for eight years and who subsequently silenced any voice that called for truth, transparency and accountability.

You can see that Marcel doesn’t like Bertha very much. Bertha doesn’t like Marcel very much either. Oh well. Not everybody can be friends.

Meanwhile, my friend Phil Kerpen of Americans for Prosperity writes that another phony-baloney panel has been created.

The Financial Crisis Inquiry Commission is headed by Phil Angelides who has deep ties to ACORN.

Whatever Angelides does, you can be sure he won’t blame ACORN for any of America’s problems.

And his commission’s report will be a fairy tale too.

THE END

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9/11 Truther Van Jones Likens Himself to Wrong Churchill

We haven’t heard the last of Van Jones.

Arianna Huffington was kind enough to allow her good friend who happens to have been a former campaign manager from her California gubernatorial run to post his preliminary reflections on being unceremoniously booted from the Obama administration on the Huffington Post.

It’s the least she could do.

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Jones is President Obama’s former green jobs czar.

He believes the Bush administration caused the 9/11 terrorist attacks to happen. He also denounced the United States on Sept. 12, 2001 blaming America for the atrocities the day before. He also mourned the deaths of the people killed in the Twin Towers of the World Trade Center but only the ones who were working class.

In what will no doubt find its way into the memoirs he might be contemplating writing, Jones compares himself to Winston Churchill, which is odd for many reasons but especially because of the apparent contempt that President Obama holds for the late great British prime minister.

With all the modesty one has come to expect from a community organizer, Jones writes

Of course, some supporters actually think I will be more effective on the “outside.” Maybe so. But those ideas always remind me of that old canard about Winston Churchill. After he lost a hard-fought election, a friend told him: “Winston, this really is just a blessing in disguise.” Churchill quipped: “Damned good disguise.” I can certainly relate to that sentiment right now. :) [emoticon in original]

He likens himself to the wrong Churchill.

Van Jones is more like Ward Churchill.

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Longtime ACORN Ally Bob Casey Stands By His Favorite Group

The Senate overwhelmingly approved a legislative amendment Monday that would block ACORN from receiving federal funding. ACORN, the Association of Community Organizations for Reform Now, is the ongoing criminal conspiracy that the mainstream media is suddenly interested in.

In the Monday roll call, only seven senators voted no.

Of the seven pro-ACORN senators, longtime Sen. Bob Casey (D-Pennsylvania) is the most outspoken supporter of ACORN.

[There is a video that cannot be displayed in this feed. Visit the blog entry to see the video.]

Of the group that organizes forcible entry and occupation of homes in order to lead proletarian revolution against capitalism, Casey is shown saying on an ACORN promotional video (just after 5:00):

So for ACORN to step into that breach and say, we in the case of ACORN will step in and try to help families, to be their advocate, to be their voice, is critically important. Because as important as it is here in Washington to pass legislation in the House and the Senate –that’s obviously important– but we cannot do this alone.

CQ’s Bill Pascoe thinks Casey might have just committed political suicide by voting to continue federal funding of ACORN.

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