ACORN Watch: Massive embezzlement cover-up

By Michelle Malkin  •  July 10, 2008 11:18 AM

I ask again: Hello, GOP? Hello? Earth to GOP. Do something about this. Taxpayers continue to fund ACORN and its corrupt ways. We’re subsidizing their voter fraud, lining the pockets of their left-wing leaders, helping them profit off of the mortgage counseling racket, and now…funding them while they covered up massive embezzlement.

Crikey:

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.

“We thought it best at the time to protect the organization, as well as to get the funds back into the organization, to deal with it in-house,” said Maude Hurd, president of Acorn. “It was a judgment call at the time, and looking back, people can agree or disagree with it, but we did what we thought was right.”

The Consumer Rights League has renewed its call for Congress (and specifically, Financial Services Committee Chair Barney Frank) to initiate an investigation into ACORN’s troubling pattern of taxpayer-abusing behavior. See also this backgrounder on the expansive list of ACORN’s illegal activities: its commingling of government funds for political purposes, its rampant voter registration fraud, and now the latest embezzlement scandal.

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Comments


  1. #372306
    On July 10th, 2008 at 11:25 am, letget said:

    Thanks Michelle for the almost daily up-dates on this group. Sure wish my tax dollars weren’t going to them, but I’m not holding my breath for any action from DC.
    L

  2. #372312
    On July 10th, 2008 at 11:30 am, sonofdy said:

    The 9% congress will get to draining this part of the swamp some time arroundddd… Lets pencil it in for right after hell frezzes over.

  3. #372316
    On July 10th, 2008 at 11:32 am, josetheguerilla said:

    I ask again: Hello, GOP? Hello? Earth to GOP. Do something about this.

    MM is on this, like white on rice!!!!!!!!!!

    Get’em Michelle!!!!!

    No red phone pic with a list of names and numbers?

    Que Pasa, Michelle?

  4. #372323
    On July 10th, 2008 at 11:38 am, alaskangrizzly said:

    I’m shocked, just totally shocked that ACORN was caught embezzling money and receives taxpayer money despite previous voter fraud cases being brought to light. Shocked I tell you! /sarc

  5. #372324
    On July 10th, 2008 at 11:38 am, brooklyn red said:

    “…Acorn, one of the country’s largest community organizing groups,…”

    Community organizing?? Hmmmmm, now where have I heard that before???

  6. #372326
    On July 10th, 2008 at 11:42 am, Regulus said:

    I’m afraid this is a, “Heads I win, tails you lose” proposition for Republicans.

    Do nothing, and the shenanigans will just go on.

    Take action, and you’ll be labeled by the donkeys as “suppressing minority voters.” The drive-by media will do their part by repeating and amplifying the donkey accusations while ignoring the fraud and criminality of ACORN. And in the end, it’ll be “common knowledge” that Republicans are actively denying women, the poor, minorities, etc. the franchise — “Just like they did in Florida in 2000.”

    As Darth Vader said to Luke Skywalker, “Search your feelings, you know it to be true!”

    Given the cowardice of too many Republicans in DC — who are too afraid of being called names by the donkeys and their minions to stand on their own principles — I’m betting that the Ostrich solution to ACORN’s malfeasances will continue.

  7. #372328
    On July 10th, 2008 at 11:42 am, jtex said:

    Ask Barney Frank to initiate an investigation? You’ve gotta be joking. Ain’t never gonna happen.

    .

  8. #372329
    On July 10th, 2008 at 11:44 am, jimwesty said:

    I am beginning to believe that the problems with congress and tax money flowing to programs that the government has no business funding is not curable. We have reached a point where citizen apathy has created a system where congressman operate with total disregaurd to fiscal restraint —

  9. #372338
    On July 10th, 2008 at 11:48 am, sambo said:

    “We thought it best at the time to protect the organization, as well as to get the funds back into the organization, to deal with it in-house,” said Maude Hurd, president of Acorn. “It was a judgment call at the time, and looking back, people can agree or disagree with it, but we did what we thought was right.”

    See all you big government freaks. Who cares when it’s someone else’s money.

  10. #372352
    On July 10th, 2008 at 11:56 am, RedDog said:

    Where are Hoover’s G Men when you need them?

  11. #372415
    On July 10th, 2008 at 12:30 pm, pueblo1032 said:

    MM, your JUNK YARD DOG mentality on this is refreshing. Keep on top of this one, I have a feeling this is going to mushroom in size. Get hold of your ELECTED REPS in the congress and senate, don’t let them SWEEP this under the carpet.

  12. #372435
    On July 10th, 2008 at 12:39 pm, On-my-soap-box said:

    Crikey indeed.

    I will sned in a check the the RNC as soon as they start doing something about this.

    I guess my money is safe.

  13. #372449
    On July 10th, 2008 at 12:45 pm, vickisoup said:

    McCain should be talking about this non-stop!
    Good grief; even Charlie Brown could run a better campaign that John “McPain-in-my-butt” is doing.
    :mad:

  14. #372490
    On July 10th, 2008 at 1:02 pm, ajmontana said:

    vicki, and lucy could give better advice for only a nickel.

    doctor is in

  15. #372521
    On July 10th, 2008 at 1:18 pm, AlohaGuy said:

    Can we please stop giving tax money away?

  16. #372552
    On July 10th, 2008 at 1:39 pm, William Amos said:

    I did another look at ACORN in my own blog

    Including a look into if ACORN got kickbacks from Minnesota’s attourney General.

  17. #372586
    On July 10th, 2008 at 2:02 pm, md1964 said:

    Well now we know why Jessie Jack-a$$ has never been overheard sayign he wants to cut the N#$ts off the Republican members of Congress/Senate.

    THEY DON’T HAVE ANY…nor a Spine!!!!!!!!!

  18. #372668
    On July 10th, 2008 at 3:06 pm, bayou22 said:

    Well, as they say, the ACORN doesn’t fall too far from the tree.

  19. #372689
    On July 10th, 2008 at 3:18 pm, right_on said:

    McCain should be talking about this non-stop!

    Of course, you’re right. Unfortunately, it seems that if it is not his idea to look into something fishy, it doesn’t get handled until there is a poll conducted on the “people’s” wishes.

    No Republican who cares about his political future, will step on McCain’s message du jour. To do so, gets immediate condemnation. He cannot run a campaign “in the center,” when people who support him make suggestions or comments that appear conservative.

    His condemnation of Phil Gramm’s comment, after it was marginalized by BHO’s ridicule today, shows that conservatives cannot use the First Amendment to express their personal views, without getting blasted by a leader in their own party.

    In his effort to appeal to the left and undecided voters, he reacts swiftly to show them how fair he is, when his opponent has to be dragged, kicking and screaming, to get but a mere lukewarm admonision, or celestial forgiveness for their own detestable comments.

  20. #372712
    On July 10th, 2008 at 3:30 pm, gandolphxx said:

    When you teach people to lie, cheat and steal votes and elections why would you be surprised when the lie, cheat and steal money?

  21. #372843
    On July 10th, 2008 at 5:23 pm, LOBOMAN said:

    Is this the same acorn that Obamarishi was affiliated with a while back?????

  22. #373112
    On July 10th, 2008 at 11:15 pm, starlightwoman said:

    Start making your list for items to take care of after the election cause nothin is going to happen before then

  23. #373147
    On July 11th, 2008 at 12:57 am, Republicanvet said:

    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.

    Perhaps there are some lawyers here who could chime in but….I thought something such as this, a 501(c)3 organization and embezzlement, REQUIRED reporting to the proper authorities when discovered.

    I understood that things like this opened the board members to individual liability…for funds it obtained. They have an obligation to ensure the funds are used appropriately. Seems they are getting far too much money to be tax exempt if they cannot keep track of a cool mil +.

    Sheesh. At what point will the IRS pull their exempt status?

    At what point will some federal prosecutor (federal funds involved) impanel a Grand Jury and start digging into this mess?

    Where the hell is the GOP?

  24. #374955
    On July 14th, 2008 at 9:50 am, Jimmie said:

    Where in the hell is the GOP?…hiding of course….If they DARE critize anything attached to Obama…the drive by media will not like them anymore, they will call them poo poo face and they are very afraid of that…so they must hide don’t you see.

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