Archive for the ‘News’ Category
WorldNetDaily: Cambridge Cancels Michael Savage Debate
WorldNetDaily reports:

Just one week before Michael Savage was scheduled to debate via video link at the Cambridge Union in England, the co-presidents of the two-century-old society informed the top-rated radio host they have canceled the event.
As WND reported, the invitation from the Cambridge Union Society for the Oct. 15 debate was issued in July after Savage was banned from entering the United Kingdom by Prime Minister Gordon Brown’s government along with Muslim extremists and leaders of hate groups.
In an e-mail today to Savage producer Beowulf Rochlen, Cambridge Union leaders Julien Domercq and Jonathan Laurence wrote, “It is with great regret to inform you of the difficult decision we have taken to cancel the event.”
Domercq and Laurence pointed to problems with the cost and feasibility of setting up the necessary video link, but they also cited “legal issues.”
“We have reconsulted with our counsel, and been informed that there are numerous legal issues with Dr Savage speaking here,” they wrote, “and so because of all of the technical, financial and legal problems involved, we have come to the reluctant conclusion that the event cannot proceed.”
Full article here.
Tags: Big Government, Breitbart
Bailout May Be Helping to Generate Up to Half of Bank’s Profits
Posted by Anthony Randazzo in News, Obama, Politics on October 7th, 2009
We will never know how many, if any, of the major banks would have failed without the TARP bailout package passed a year ago. Several banks were strong-armed into taking the money. We can be reasonably sure that Citigroup and Bank of America wouldn’t be the institutions they are today without some government hand-holding—actually, it is more like continuous CPR while giving blood and donating a kidney.

However, while we can’t know the counterfactual, we can assess how the liquidity infusions have decreased credit risk, lowering the cost of capital, and compare these savings to profits. And the stunning numbers show that up to nearly half of all profits from the top 18 banks are the result of Uncle Sam subsidizing the cost of credit.
Every day financial firms borrow money to conduct business. Just like with individuals and families, there is a cost to the credit in the form of an interest payment or fee. However, with a virtual government guarantee of security, the big financial institutions have been able to borrow at artificially reduced rates. Lenders to financial institutions know Uncle Sam has the back of the big boys on Wall Street. They’re sure to get their money back, based on current White House and Fed policy.
The problem is that this gives large financial institutions a competitive advantage over smaller business. Those smaller firms have to pay more for their credit. They don’t have the government guarantee. They are more risky. And while it is true that smaller firms will always have to pay more money to borrow than the larger firms, the government guarantee has widened the gap between the cost of credit for the smalls and bigs.
This has been a generally accepted phenomena over the past year, but now we have some real numbers to back up the theory. The left-leaning Center for Economic and Policy Research (CEPR) released an interesting study last week that looked at the implicit benefits that banks have received from TARP and associated Federal Reserve programs. The report finds that banks have received up to $34.1 billion in benefits—beyond the $700 billion of TARP infusions—from cheap access to credit due to their too big to fail (TBTF) status.
Here is the gist of the study:
The spread between the average cost of funds for smaller banks and the cost of funds for institutions with assets in excess of $100 billion averaged 0.29 percentage points in the period from the first quarter of 2000 through the fourth quarter of 2007, the last quarter before the collapse of Bear Stearns. In the period from the fourth quarter of 2008 through the second quarter of 2009, after the government bailouts had largely established TBTF as official policy, the gap had widened to an average of 0.78 percentage points. [...] The increase in the gap of 0.49 percentage points implies a government subsidy of $34.1 billion a year to the 18 bank holding companies with more than $100 billion in assets in the first quarter of 2009.
Note that the “subsidy” mentioned here is not direct cash taken from taxpayer coffers, but rather it is a benefit that is gained by the promised use of taxpayer monies to insurance against losses/failure. This is the government using policy to redirect resources in the marketplace. Essentially this is saying that big banks were saved over $34.1 billion in costs.
To put that number in context, the total profits of the 18 largest banks during the second measured period from the end of 2008 to 2009 has been $68.56 billion, meaning the “subsidy” from cheaper access to credit accounts for nearly half of big bank profits. And, again, this not even counting the direct benefit that the capital infusions from TARP have provided.
The report also notes that $34.1 billion is the high end estimate and that there are other factors which could be considered as the cause for the increased spread in cost of credit. But if the high end estimate is correct, then government “subsidy” accounted for 166% of Capital One’s profits last year, and it prevented Morgan Stanley’s losses from being 50% larger. Those are very significant numbers when you consider what other uses the assets and resources these failing companies are consuming could be put towards.
If President Obama’s Wall St. regulation reform plan becomes law it will make TBTF explicit, perpetuating these associated problems with artificially reduced credit risk (which I wrote about in my recent financial services regulation study published by the Reason Foundation). As The New York Times puts it:
Too-big-to-fail is already an extremely costly policy; the longer it is allowed to persist, the heavier this taxpayer burden will become.
See here for the full CERP report and data.
For more on this, check out Reason’s blog Out of Control: New Study Suggests Nearly Half of Bank Profits Could Be From Too Big To Fail Guarantees
Tags: Big Government, Breitbart
Stand Up Notes From Flyover Country: Janeane Is Off Her Meds and Other Stories
Posted by Jeffrey Jena in Featured Story, News on October 7th, 2009
I happened to see some clips of alleged Janeane Garofalo on the Bill Maher show the other night. I have a warning for anyone who sees her in person or is near her: Janeane is off her meds again and the voices in her head have taken control.
She is already on record as believing that anyone who does not worship at the Church of Radial Leftism is a “straight up racist.” Beside not understanding the English translation of her argot “straight up,” I am sure that anyone who is even a little bit clear headed can imagine a world where people who thought Condi was dandy and helped Michael Steele get to the helm of the GOP might not take race as the deciding factor with Obama. Be that as it may, Ms. Garofalo assured us that not only were right-wingers racists, but the GOP has been the bastion of White Supremacy since the 1950’s.

Keeping in mind one of the favorite saying of my friend Larry Elder, “Facts are like kryptonite to toe-tag liberals.” (Mr. Elder defines liberals as “toe-tag” if they believe in government intrusion in our lives from birth until they put the tag on your toe in the morgue.) I will present a few facts to try to bring Janeane back into the real world.
***
President Eisenhower backed and signed the first two pieces of significant civil rights legislation in America in 1956 and 1960. He also appointed Republican judges in the south who moved Brown vs. The Board of Education to the Supreme Court. President Eisenhower was… say it with me… A Republican.
The landmark 1964 Civil Rights Act was back by 82% of Republicans in Congress while only 62 % of Democrats supported the measure. Opposition to the bill was led by Robert Byrd… Democrat! These other well know Senators also voted against the bill: Albert Gore Sr., William Fulbright, Richard Russell, and James Eastland–all Democrats! Two other well know historical figures were prominent in the segregation movement: George Wallace and Orval Faubus, both tried to block black students from attending “white” schools, both were Democrats. It is also interesting to note that both Faubus and Fulbright were counted as mentors by… anyone? William J. Clinton, who I believe was also a Democrat.
***
David Letterman is a total scumbag, who would have thought it! Seems Dave has been having sex with the help over at CBS. I wonder if CBS will make him sit through some sensitivity training on sexual harassment. Here is another surprise, Dave is just another progressive who talks one game and plays another. I am glad to see he has some morality, when a guy who knew what he was up to tried to blackmail him he drew a line in the sand. At least we know what he really cares about–his money.
Whoopi Goldberg also gave us a lesson in Hollywood morality last week when she defended pedophile and child pornographer Roman Polanski: “It wasn’t rape-rape,” she said on The View commenting about the capture of the Polish film director. Seems thinks its okay to: A) Drug a 13-year-old and then have sex with her, and B) After you’re convicted, skip bail and flaunt your lifestyle in Europe.
What’s more, he wants to return to the US for the same reason David Letterman fessed up: America is where the money is and Polanski wants more that he can make in socialist Europe. He has been trying to get his conviction overturned and recently had one of his lawyers claim that even the LA court didn’t care that he had skipped. Wrong!
Bigwig producer Harvey Weinstein put out a petition to support Mr. Polanski which was signed by moral pillar Woody Allen. Maybe he is trying to get O.J., Robert Blake and Phil Spector to sign too!
***
Finally, a last word about Congressman Joe Wilson. In case you have been in a coma for the last month, Wilson yelled “you lie!” at the President during a speech to a joint session of Congress. Congressman Wilson apologized, as he should have, more than a few times for being rude and breaking the decorum of the House. A lot of folks got on him for being uncivil, but I don’t think anyone said he was wrong. In fact, last week Democrats blocked language which would have codified the pledge by Obama that his health care plan would not be open to illegals. Things that make you go Hummmmm…
Is CNN the New SNL?
Posted by Maura Flynn in News, Obama, Politics on October 7th, 2009
[There is a video that cannot be displayed in this feed. Visit the blog entry to see the video.]
[There is a video that cannot be displayed in this feed. Visit the blog entry to see the video.]
“Fact checking” a comedy sketch is a bizarre exercise in itself. PolitiFact does not appear to have done the same for past “SNL” sketches spoofing Republican politicians like George W. Bush, Dick Cheney and Sarah Palin. (In fact, CNN reports that Adair, in the network’s words, “says the sketch won’t resonate with the audience as much as” Tina Fey’s Palin send-up.)”
Did I miss a meeting? When did venerable news organizations start fact-checking comedy shows? Look out, South Park! On the plus side, maybe the MSM will move on toward fact-checking actual news stories (ACORN scandal, anyone?).
But when you’ve stopped laughing at the sketch and/or the absurd “news” coverage, take a breath and a victory lap. Either this is yet another example of the Left taking itself much too seriously, or else this is what fear looks like.
Who’s got the last laugh?
Tags: Big Government, Breitbart
Milbank: The Forest, the Trees and ACORN
Posted by Publius in ACORN, News, Politics, Wade Rathke on October 7th, 2009
The Washington Post’s Dana Milbank weighs in on Bertha Lewis’ theatrical show at the National Press Club:
Bertha Lewis, the head of ACORN, is one tough nut.
She came to the National Press Club on Tuesday, ostensibly to report on the community group’s “internal probe” into the ACORN workers who were caught on tape advising people posing as a pimp and a prostitute. But Lewis made it clear that, far from apologizing, she was on a “set-the-record-straight tour” — and a tour de force it was.
The internal review by ACORN’s board, disclosed this week by the Louisiana attorney general, that $5 million had been embezzled from the group rather than the $1 million previously alleged? “This is speculation, completely false and not based on any documentation or any audit or anything other than two disgruntled former board members,” Lewis reported.
Accusations of voter fraud after ACORN workers filled out voter registrations for Mickey Mouse, Donald Duck and the starting lineup of the Dallas Cowboys? “An utter fabrication and a work of fiction that was created by the people who wrote it.”
The report by Republicans on the Senate Finance Committee that ACORN created a “shell game that funneled charitable funds to for-profit organizations”? “Another stretch of allegations of how to pound on ACORN. . . . It’s just false.”
And, of course, the secretly recorded videos of ACORN workers providing help to people claiming they wished to set up an underage-prostitution business? “These highly edited tapes,” Lewis said, “don’t tell the whole story.” ACORN’s accusers “have to stoop to break the law in order to create something sensational,” she added.
In creativity, the ACORN boss’s denials were matched only by her assignments of blame. She blamed her predecessor: “I don’t think it’s fair to judge me, as I’m cleaning up a previous administration.” She blamed the powerful: “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.” And most of all, 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.”
Assigned only a minor role in this orgy of blame were ACORN and Lewis herself. “My biggest weakness is a certain naivete about folks coming after you,” she said in a moment of self-interested introspection. “I guess maybe others might have known and could have set up some other barriers and could’ve been better with media and PR.”
Read the whole story here. But, first savor this quote. Perhaps one of the best Big Media comments during this breaking saga:
But Lewis, in playing the victim, is her own worst enemy. Forget the film of the pimp and prostitute: Watching a film of Lewis’s performance yesterday would probably be enough to cause lawmakers to cut off ACORN’s federal funding.
Tags: Big Government, Breitbart
Milbank: The Forest, the Trees and ACORN
Posted by Publius in ACORN, News, Politics, Wade Rathke on October 7th, 2009
The Washington Post’s Dana Milbank weighs in on Bertha Lewis’ theatrical show at the National Press Club:
Bertha Lewis, the head of ACORN, is one tough nut.
She came to the National Press Club on Tuesday, ostensibly to report on the community group’s “internal probe” into the ACORN workers who were caught on tape advising people posing as a pimp and a prostitute. But Lewis made it clear that, far from apologizing, she was on a “set-the-record-straight tour” — and a tour de force it was.
The internal review by ACORN’s board, disclosed this week by the Louisiana attorney general, that $5 million had been embezzled from the group rather than the $1 million previously alleged? “This is speculation, completely false and not based on any documentation or any audit or anything other than two disgruntled former board members,” Lewis reported.
Accusations of voter fraud after ACORN workers filled out voter registrations for Mickey Mouse, Donald Duck and the starting lineup of the Dallas Cowboys? “An utter fabrication and a work of fiction that was created by the people who wrote it.”
The report by Republicans on the Senate Finance Committee that ACORN created a “shell game that funneled charitable funds to for-profit organizations”? “Another stretch of allegations of how to pound on ACORN. . . . It’s just false.”
And, of course, the secretly recorded videos of ACORN workers providing help to people claiming they wished to set up an underage-prostitution business? “These highly edited tapes,” Lewis said, “don’t tell the whole story.” ACORN’s accusers “have to stoop to break the law in order to create something sensational,” she added.
In creativity, the ACORN boss’s denials were matched only by her assignments of blame. She blamed her predecessor: “I don’t think it’s fair to judge me, as I’m cleaning up a previous administration.” She blamed the powerful: “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.” And most of all, 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.”
Assigned only a minor role in this orgy of blame were ACORN and Lewis herself. “My biggest weakness is a certain naivete about folks coming after you,” she said in a moment of self-interested introspection. “I guess maybe others might have known and could have set up some other barriers and could’ve been better with media and PR.”
Read the whole story here. But, first savor this quote. Perhaps one of the best Big Media comments during this breaking saga:
But Lewis, in playing the victim, is her own worst enemy. Forget the film of the pimp and prostitute: Watching a film of Lewis’s performance yesterday would probably be enough to cause lawmakers to cut off ACORN’s federal funding.
Tags: Big Government, Breitbart
The Orchid Police: Criminalizing Everything, Everyone
Brian Walsh with the Heritage Foundation has this hilarious, ridiculous, depressing story at the Washington Times:
“You don’t need to know. You can’t know.” That’s what Kathy Norris, a 60-year-old grandmother of eight, was told when she tried to ask court officials why, the day before, federal agents had subjected her home to a furious search.
The agents who spent half a day ransacking Mrs. Norris’ longtime home in Spring, Texas, answered no questions while they emptied file cabinets, pulled books off shelves, rifled through drawers and closets, and threw the contents on the floor.
The six agents, wearing SWAT gear and carrying weapons, were with – get this- the U.S. Fish and Wildlife Service.
Kathy and George Norris lived under the specter of a covert government investigation for almost six months before the government unsealed a secret indictment and revealed why the Fish and Wildlife Service had treated their family home as if it were a training base for suspected terrorists. Orchids.
That’s right. Orchids.
By March 2004, federal prosecutors were well on their way to turning 66-year-old retiree George Norris into an inmate in a federal penitentiary – based on his home-based business of cultivating, importing and selling orchids.
Mrs. Norris testified before the House Judiciary subcommittee on crime this summer. The hearing’s topic: the rapid and dangerous expansion of federal criminal law, an expansion that is often unprincipled and highly partisan.
Chairman Robert C. Scott, Virginia Democrat, and ranking member Louie Gohmert, Texas Republican, conducted a truly bipartisan hearing (a D.C. rarity this year).
These two leaders have begun giving voice to the increasing number of experts who worry about “overcriminalization.” Astronomical numbers of federal criminal laws lack specifics, can apply to almost anyone and fail to protect innocents by requiring substantial proof that an accused person acted with actual criminal intent.
Mr. Norris ended up spending almost two years in prison because he didn’t have the proper paperwork for some of the many orchids he imported. The orchids were all legal – but Mr. Norris and the overseas shippers who had packaged the flowers had failed to properly navigate the many, often irrational, paperwork requirements the U.S. imposed when it implemented an arcane international treaty’s new restrictions on trade in flowers and other flora.
The judge who sentenced Mr. Norris had some advice for him and his wife: “Life sometimes presents us with lemons.” Their job was, yes, to “turn lemons into lemonade.”
The judge apparently failed to appreciate how difficult it is to run a successful lemonade stand when you’re an elderly diabetic with coronary complications, arthritis and Parkinson’s disease serving time in a federal penitentiary. If only Mr. Norris had been a Libyan terrorist, maybe some European official at least would have weighed in on his behalf to secure a health-based mercy release.
Krister Evertson, another victim of overcriminalization, told Congress, “What I have experienced in these past years is something that should scare you and all Americans.” He’s right. Evertson, a small-time entrepreneur and inventor, faced two separate federal prosecutions stemming from his work trying to develop clean-energy fuel cells.
The feds prosecuted Mr. Evertson the first time for failing to put a federally mandated sticker on an otherwise lawful UPS package in which he shipped some of his supplies. A jury acquitted him, so the feds brought new charges. This time they claimed he technically had “abandoned” his fuel-cell materials – something he had no intention of doing – while defending himself against the first charges. Mr. Evertson, too, spent almost two years in federal prison.
As George Washington University law professor Stephen Saltzburg testified at the House hearing, cases like these “illustrate about as well as you can illustrate the overreach of federal criminal law.” The Cato Institute’s Timothy Lynch, an expert on overcriminalization, called for “a clean line between lawful conduct and unlawful conduct.” A person should not be deemed a criminal unless that person “crossed over that line knowing what he or she was doing.” Seems like common sense, but apparently it isn’t to some federal officials.
Former U.S. Attorney General Richard Thornburgh’s testimony captured the essence of the problems that worry so many criminal-law experts. “Those of us concerned about this subject,” he testified, “share a common goal – to have criminal statutes that punish actual criminal acts and [that] do not seek to criminalize conduct that is better dealt with by the seeking of regulatory and civil remedies.” Only when the conduct is sufficiently wrongful and severe, Mr. Thornburgh said, does it warrant the “stigma, public condemnation and potential deprivation of liberty that go along with [the criminal] sanction.”
The Norrises’ nightmare began with the search in October 2003. It didn’t end until Mr. Norris was released from federal supervision in December 2008. His wife testified, however, that even after he came home, the man she had married was still gone. He was by then 71 years old. Unsurprisingly, serving two years as a federal convict – in addition to the years it took to defend unsuccessfully against the charges – had taken a severe toll on him mentally, emotionally and physically.
These are repressive consequences for an elderly man who made mistakes in a small business. The feds should be ashamed, and Mr. Evertson is right that everyone else should be scared. Far too many federal laws are far too broad.
Mr. Scott and Mr. Gohmert have set the stage for more hearings on why this places far too many Americans at risk of unjust punishment. Members of both parties in Congress should follow their lead.
Tags: Big Government, Breitbart
The Orchid Police: Criminalizing Everything, Everyone
Brian Walsh with the Heritage Foundation has this hilarious, ridiculous, depressing story at the Washington Times:
“You don’t need to know. You can’t know.” That’s what Kathy Norris, a 60-year-old grandmother of eight, was told when she tried to ask court officials why, the day before, federal agents had subjected her home to a furious search.
The agents who spent half a day ransacking Mrs. Norris’ longtime home in Spring, Texas, answered no questions while they emptied file cabinets, pulled books off shelves, rifled through drawers and closets, and threw the contents on the floor.
The six agents, wearing SWAT gear and carrying weapons, were with – get this- the U.S. Fish and Wildlife Service.
Kathy and George Norris lived under the specter of a covert government investigation for almost six months before the government unsealed a secret indictment and revealed why the Fish and Wildlife Service had treated their family home as if it were a training base for suspected terrorists. Orchids.
That’s right. Orchids.
By March 2004, federal prosecutors were well on their way to turning 66-year-old retiree George Norris into an inmate in a federal penitentiary – based on his home-based business of cultivating, importing and selling orchids.
Mrs. Norris testified before the House Judiciary subcommittee on crime this summer. The hearing’s topic: the rapid and dangerous expansion of federal criminal law, an expansion that is often unprincipled and highly partisan.
Chairman Robert C. Scott, Virginia Democrat, and ranking member Louie Gohmert, Texas Republican, conducted a truly bipartisan hearing (a D.C. rarity this year).
These two leaders have begun giving voice to the increasing number of experts who worry about “overcriminalization.” Astronomical numbers of federal criminal laws lack specifics, can apply to almost anyone and fail to protect innocents by requiring substantial proof that an accused person acted with actual criminal intent.
Mr. Norris ended up spending almost two years in prison because he didn’t have the proper paperwork for some of the many orchids he imported. The orchids were all legal – but Mr. Norris and the overseas shippers who had packaged the flowers had failed to properly navigate the many, often irrational, paperwork requirements the U.S. imposed when it implemented an arcane international treaty’s new restrictions on trade in flowers and other flora.
The judge who sentenced Mr. Norris had some advice for him and his wife: “Life sometimes presents us with lemons.” Their job was, yes, to “turn lemons into lemonade.”
The judge apparently failed to appreciate how difficult it is to run a successful lemonade stand when you’re an elderly diabetic with coronary complications, arthritis and Parkinson’s disease serving time in a federal penitentiary. If only Mr. Norris had been a Libyan terrorist, maybe some European official at least would have weighed in on his behalf to secure a health-based mercy release.
Krister Evertson, another victim of overcriminalization, told Congress, “What I have experienced in these past years is something that should scare you and all Americans.” He’s right. Evertson, a small-time entrepreneur and inventor, faced two separate federal prosecutions stemming from his work trying to develop clean-energy fuel cells.
The feds prosecuted Mr. Evertson the first time for failing to put a federally mandated sticker on an otherwise lawful UPS package in which he shipped some of his supplies. A jury acquitted him, so the feds brought new charges. This time they claimed he technically had “abandoned” his fuel-cell materials – something he had no intention of doing – while defending himself against the first charges. Mr. Evertson, too, spent almost two years in federal prison.
As George Washington University law professor Stephen Saltzburg testified at the House hearing, cases like these “illustrate about as well as you can illustrate the overreach of federal criminal law.” The Cato Institute’s Timothy Lynch, an expert on overcriminalization, called for “a clean line between lawful conduct and unlawful conduct.” A person should not be deemed a criminal unless that person “crossed over that line knowing what he or she was doing.” Seems like common sense, but apparently it isn’t to some federal officials.
Former U.S. Attorney General Richard Thornburgh’s testimony captured the essence of the problems that worry so many criminal-law experts. “Those of us concerned about this subject,” he testified, “share a common goal – to have criminal statutes that punish actual criminal acts and [that] do not seek to criminalize conduct that is better dealt with by the seeking of regulatory and civil remedies.” Only when the conduct is sufficiently wrongful and severe, Mr. Thornburgh said, does it warrant the “stigma, public condemnation and potential deprivation of liberty that go along with [the criminal] sanction.”
The Norrises’ nightmare began with the search in October 2003. It didn’t end until Mr. Norris was released from federal supervision in December 2008. His wife testified, however, that even after he came home, the man she had married was still gone. He was by then 71 years old. Unsurprisingly, serving two years as a federal convict – in addition to the years it took to defend unsuccessfully against the charges – had taken a severe toll on him mentally, emotionally and physically.
These are repressive consequences for an elderly man who made mistakes in a small business. The feds should be ashamed, and Mr. Evertson is right that everyone else should be scared. Far too many federal laws are far too broad.
Mr. Scott and Mr. Gohmert have set the stage for more hearings on why this places far too many Americans at risk of unjust punishment. Members of both parties in Congress should follow their lead.
Tags: Big Government, Breitbart
Lawmaker Sends Letter to Obama: Fire Jennings Now
Byron York has a story at the Examiner on the first lawmaker to call for the scalp of Kevin Jennings, “Safe School” Czar (no we can’t believe we just typed that title, either).
Republican Rep. Steve King is sending a letter to the president today calling for the firing of gay activist Kevin Jennings, head of the Education Department’s Office of Safe and Drug Free Schools. “The totality of Mr. Jennings’ career has been to advocate for public affirmation of homosexuality,” King writes. “There is more to safe and drug free shools than can be accomplished from the narrow view of Mr. Jennings who has, for more than 20 years almost exclusively focused on promoting the homosexual agenda.”
In the letter, King points to a foreword Jennings wrote for a 1999 book entitled Queering Elementary Education, as well as Jennings’ work as founder of the Gay, Lesbian, and Straight Education Network. King also mentions a 1988 incident in which Jennings, then a teacher, chose not to alert any authorities when he learned of a teenage boy, a student, who had become involved with an adult man. Finally, King points to stories Jennings has told of his own drug use. “Kevin Jennings cannot gain the approval of parents who want their children safe and their schools drug free,” King writes.
Full story here. Personally, we’re not so much offended by Mr. Jennings as we are that this position even exists. We don’t believe anyone should occupy this position.
Tags: Big Government, Breitbart
Lousiana Attorney General Serves ACORN With 2nd Subpoena: Full Text
Posted by Kevin Kane in ACORN, News, Politics, Wade Rathke on October 6th, 2009
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 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’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.
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.
Though the debt is paid, the attorney general’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.
The document says former members of the ACORN board of directors approached state officials with claims that the group was breaking laws “related to the filing of employee withholding taxes, failing to report an embezzlement of nearly $1 million by the brother of the founder…., obstructing justice and violations of the Employee Retirement Security Act.”
The obstruction allegation comes from the failure to report Dale Rathke’s improper charges, and the retirement-account contention refers to the possible illegal use of money in those accounts for ACORN employees.
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.
The subpoena also focuses on Dale Rathke’s actions, seeking information “detailing the theft of funds by Dale Rathke…and failure to report the theft to the proper law enforcement agencies.” It also demands records “dealing with the issue of Dale Rathke’s illegal use of employee benefit funds” and “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.”
Regarding the tax many tax liens filed against ACORN and related groups, the subpoena said that “a substantial portion” of the $306,000 owed was not paid until “bank accounts were levied.”
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.
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.
Original story here.
Tags: Big Government, Breitbart