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DOJ To Review Whether It Funded ACORN

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Some Republican foes of ACORN have been calling since last week for a Justice Department investigation of the beleaguered group, in the wake of the now-famous hidden camera scandal.

And it looks like a DOJ probe, of a kind, will indeed go forward.

The Justice Department's internal watchdog will investigate whether DOJ has given ACORN any federal funds, and whether the department ever carried out any audits or reviews of those funds.

The news -- which offers a sign of how quickly ACORN's stock in the capital is plummeting -- was revealed in a letter from Justice Department Inspector General Glenn Fine to Reps. John Conyers (D-MI) and Lamar Smith (R-TX), the chair and ranking member respectively of the House Judiciary committee. Read the letter here. Smith had requested the review last week.

Earlier this month, two conservative activists posted videos in which ACORN employees were caught on camera advising the activists -- dressed as a pimp and a prostitute -- on how to break the law.

The House last week voted to cut off all federal funding from the scandal-plagued group. And yesterday, President Obama said ACORN should be investigated, though he didn't specify by who.

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2 comments

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September 22, 2009 9:25 AM   

Gee. Find a couple of bad apples in an organization and defund the entire organization.

When will the US Military be defunded because of those few bad apples at Abu Gharib?

ACORN has done a lot of great work in getting out the votes - particularly for Democrats. That is why the Republicans are so dead set against ACORN.

The Democrats will rue the day when they allowed this persecution to take place.
.

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September 22, 2009 4:10 PM   

You bet, just a couple of bad apples.

http://www.nytimes.com/2008/07/09/us/09embezzle.html?_r=1

Funds Misappropriated at 2 Nonprofit Groups

Two prominent national nonprofit groups are reeling from public disclosures that large sums of money were misappropriated in unrelated incidents by an employee and a former employee.

The groups, Acorn, one of the country’s largest community organizing groups, and the Points of Light Institute, which works to encourage civic activism and volunteering, have dealt with the problems in very different ways.

Acorn chose to treat the embezzlement of nearly $1 million eight years ago as an internal matter and did not even notify its board. After Points of Light noticed financial irregularities in early June, it took less than a month for management to alert federal prosecutors, although group officials say they have no clear idea yet what the financial impact may be.

A whistle-blower forced Acorn to disclose the embezzlement, which involved the brother of the organization’s founder, Wade Rathke.

The brother, Dale Rathke, embezzled nearly $1 million from Acorn and affiliated charitable organizations in 1999 and 2000, Acorn officials said, but a small group of executives decided to keep the information from almost all of the group’s board members and not to alert law enforcement.

Dale Rathke remained on Acorn’s payroll until a month ago, when
disclosure of his theft by foundations and other donors forced the organization to dismiss him.
=================================================================

http://www.nola.com/politics/index.ssf/2009/09/state_federal_officials_cut_of.html

Louisiana Attorney General Buddy Caldwell said his investigation started after he received a complaint from former members of ACORN's board of directors claiming that the group and its subsidiaries were violating state employee tax law, obstructing justice and violating the Employee Retirement Security Act, according to subpoenas issued last month by the attorney general's office.

The subpoenas state 57 liens have been filed against ACORN and affiliates by the U.S. Treasury Department and the Internal Revenue Service for failure to properly pay withholding and unemployment taxes. The total amounts due were $1.12 million.

The Louisiana Department of Revenue also has filed two liens against ACORN for failure to pay withholding taxes, amounting to about $333,000.

Caldwell said the money for ACORN's state and federal withholding taxes "went somewhere, " and his office is trying to find out what happened.

ACORN officials in New Orleans could not be reached for comment Thursday.

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