Michelle Malkin » ACORN Watch, Pt II: Obama hid $800,000 payment to ACORN through “Citizen Services, Inc.”

ACORN Watch, Pt II: Obama hid $800,000 payment to ACORN through “Citizen Services, Inc.”

By Michelle Malkin • August 22, 2008 11:46 AM

There’s much more to the story of Obama’s amended campaign finance reports than what Obama and the Obamedia will tell you. I will fill you in on what’s missing in a moment. What we have here, essentially, is Obama using a non-profit group called Citizens Services Inc. as a front to funnel payments to ACORN for campaign advance work. Obama officials say it’s no big deal. Nothing to see here. Move along. But where there’s left-wing laundering smoke, there’s fire. CSI has been the subject of a little-noticed complaint to the FEC by a Democrat who smelled something rotten going on between CSI, ACORN, and a left-wing 527, Communities Voting Together.

But first, the headline:

Obama to amend report on $800,000 in spending

The Pittsburgh Tribune-Review has details:

U.S. Sen. Barack Obama’s presidential campaign paid more than $800,000 to an offshoot of the liberal Association of Community Organizations for Reform Now for services the Democrat’s campaign says it mistakenly misrepresented in federal reports.

An Obama spokesman said Federal Election Commission reports would be amended to show Citizens Services Inc. — a subsidiary of ACORN — worked in “get-out-the-vote” projects, instead of activities such as polling, advance work and staging major events as stated in FEC finance reports filed during the primary.

FEC spokeswoman Mary Brandenberger said it is not unusual for campaigns to amend reports, even regarding large sums of money.

But, said Blair Latoff, spokeswoman for the Republican National Committee: “Barack Obama’s failure to accurately report his campaign’s financial records is an incredibly suspicious situation that appears to be an attempt to hide his campaign’s interaction with a left-wing organization previously convicted of voter fraud. For a candidate who claims to be practicing ‘new’ politics, his FEC reports look an awful lot like the ‘old-style’ Chicago politics of yesterday.”

The suspicions are well-placed, as I’ve been detailing ever since starting ACORN Watch.

Jim Terry, spokesman for a group that tracks ACORN, said Citizens Services Inc.’s involvement in the Obama campaign raises bigger questions.

“All of this just seems like an awful lot of money and time spent on political campaigning for an organization that purports to exist to help low-income consumers,” said Terry, chief public advocate for Consumers Rights League, a Washington, D.C., advocacy outfit with a libertarian outlook.

“ACORN has a long and sordid history of employing convoluted Enron-style accounting to illegally use taxpayer funds for their own political gain,” Terry claimed. “Now it looks like ACORN is using the same type of convoluted accounting scheme for Obama’s political gain.”

Are your alarm bells ringing yet?

The Ohio primary was March 4. According to FEC records, the Obama campaign paid Citizens Services Inc. $832,598.29, from Feb. 25 to May 17.

A Trib analysis of campaign finance reports showed Obama paid CSI for services that stood out as unusual. For example, CSI received payments of $63,000 and $75,000 for advance work. Excluding the large payments to CSI, the average amount the Obama campaign spent with other organizations was $558.82 per check on more than 1,200 entries classified as advance work.

Citizens Services Inc. is headquartered at the same address as ACORN’s national headquarters in New Orleans. Citizens Services was established in December 2004 to “assist persons and organizations who advance the interests of low- and moderate-income people,” according to paperwork filed in Louisiana. In a 2006 ACORN publication, Citizen Services Inc. is described as “ACORN’s campaign services entity.”

Separate? Bull:

Regarding CSI’s nonprofit status, Robinson said: “We are organized specifically not to make money, but we make money. There are no profits. We have a staff of 60 people around the country, and that eats up our entire profit. We’re not a for-profit corporation, but we are not a group like a United Way.”

CSI is a “separate organization entirely” from ACORN, he said.

“ACORN is a client of ours,” Robinson said. “ACORN has a lot of different partner organizations. We are a partner, but we are separate.”

Robinson is listed on several Web sites as national deputy political director for campaigns and elections at ACORN. He is also listed as political director at the nonprofit Communities Voting Together and as a consultant at Project Vote. He did not return phone calls or an e-mail request for a follow-up interview.

Money flows back and forth between ACORN, Citizens Services Inc., Project Vote and Communities Voting Together. ACORN posts job ads for Citizens Services and Project Vote. Communities Voting Together contributed $60,000 to Citizens Services Inc., for example, in November 2005, according to a posting on CampaignMoney.com. Project Vote has hired ACORN and CSI as its highest paid contractors, paying ACORN $4,649,037 in 2006 and CSI $779,016 in 2006, according to Terry of the Consumers Rights League.

Photoshop: Blind Mule

And now, let’s dig deeper.

FEC reports show that from February-May 2008, Obama paid $832,598.29 to CSI.

The payments were for:

$310,441.20 25-FEB-08 STAGING, SOUND, LIGHTING
$160,689.40 27-FEB-08 STAGING, SOUND, LIGHTING
$98,451.20 29-FEB-08 TRAVEL/LODGING
$74,578.01 13-MAR-08 STAGING, SOUND, LIGHTING
$18,417.00 28-MAR-08 POLLING
$18,633.60 29-APR-08 STAGING, SOUND, LIGHTING
$63,000.00 29-APR-08 ADVANCE WORK
$105.84 02-MAY-08 LICENSE FEES
$105.84 02-MAY-08 LICENSE FEES
$75,000.00 17-MAY-08 ADVANCE WORK
$13,176.20 17-MAY-08 PER DIEM

Interesting services and payments for a nonprofit that supposedly does simple canvassing work on behalf of low-income people. And now, the Obama campaign is going to wave its magic wand and change those services to get-out-the-vote work? What the…?

For your information: The New Orleans building that houses CSI also houses multiple chapters of ACORN and the SEIU– as well as the 527 group Communities Voting Together.

And for your information: A tipster points to shady business by CSI -detected by Maryland Democrat Al Wynn, of all people. His team, which filed an FEC complaint over the matter, linked several suspicious outfits used by his primary opponent to one address: 1024 Elysian Fields in New Orleans. That’s the address of CSI and ACORN.

In a letter to the FEC, Lori Sherwood, the congressman’s campaign manager, wrote, “Based on my examination of various records and documents I believe the Donna Edwards for Congress Committee has received substantial assistance by way of unreported, in-kind contributions from organizations who profess to have operated independently of the Edwards Campaign.”

In a lengthy complaint, Sherwood claimed that as executive director of the social justice organization the Arca Foundation, Edwards was “responsible for administering and overseeing grants that are awarded and distributed” by the group – grants that go to some of her campaign’s biggest supporters.

“By way of example and not limitation, the Arca Foundation contributed $100,000.00 in grants to the League of Conservation Voters (LCV) from 2004-2006,” Sherwood said.

“That after having been intimately involved in the award of an Arca grant to the LCV, Donna Edwards was appointed to the Board of Directors of the League of Conservation Voters,” she continued. “After receipt of grant money from Ms. Edward’s group and her appointment to the LCV Board, LCV endorsed Donna Edwards for Congress in 2006 and 2008.”

Sherwood goes on to allege that the “LCV and its principals contributed over $15,000.00 to the Edwards campaign through its board members, employees, and the LCV PAC.”

Tip of the iceberg:

Sherwood said the 527 group Communities Voting Together(CTV), which is located at 1024 Elysian Fields in New Orleans, was also the address for the Service Employees International Union (SEIU) Local 100, and theaddress of the Association of Community Organizations for Reform Now (ACORN),along with the Elysian Fields Corporation.

“Wade Rathke, President of Elysian Fields Corporation is also the chief organizer for SEIU Local 100, founder of ACORN, and a member of the Board of Directors of Tides Center and Tides Foundation,” Sherwood said while alleging that Tides, a social justice network, “received $245,000 ingrant money” from the Arca Foundation from 2002-2006.

She continued, saying, “Donna Pharr is the Custodian of Record for Communities Voting Together, the Assistant Treasurer for ACORN, andDeputy Treasurer for the American Institute for Social Justice and Voting forAmerica, Inc. Both of these organizations received a combined total of $230,000 in grants from Arca between 2003 and 2006.”

Sherwood also said members of the CTV “printed and distributed thousands of handouts attacking Congressman Wynn,” while they also attempted “to hire canvassers to assist the Edwards campaign.”

She continued, saying, “Donna Pharr is the Custodian of Record for Communities Voting Together, the Assistant Treasurer for ACORN, and Deputy Treasurer for the American Institute for Social Justice and Voting for America, Inc. Both of these organizations received a combined total of $230,000 in grants from Arca between 2003 and 2006.”

Sherwood also said members of the CTV “printed and distributed thousands of handouts attacking Congressman Wynn,” while they also attempted “to hire canvassers to assist the Edwards campaign.”

In addition, Sherwood said she also learned of a relationship between the Edwards [campaign] and another not for profit, Citizens Services, Inc., a Louisiana corporation also claiming the address 1024 Elysian Fields in New Orleans.

“I learned that Citizens Services, Inc. qualified to do business in Maryland as a foreign corporation and gave a registered agent address of 11 East Chase St., in Baltimore,” Sherwood said.

“In checking to verify the address, I learned that there is no record of Citizen Services, Inc. actually having an office in Baltimore,” she added. “According to recent records from the Maryland State Department of Taxation and Assessments Citizens Services, Inc.’s ability to do business in Maryland was forfeited less than 2 months after the 2006 primary.”

Sherwood alleged that the Edwards campaign paid Citizens Services a total of $76,866.80 in three separate payments in a door to door get out the vote effort.

There is at least one other example of suspiciously large payments to Citizens Services, Inc. that call into question what kind of work this non-partisan, non-profit is doing.

See here, where liberal group Ohio Citizen Action notes a $907,808 payment to Citizens Services for canvassing and $590,526.10 for “campaign consulting.” That’s some gold-plated get-out-the-vote and consulting services right there.

The scheme has all the appearances of another left-wing slush fund for Democrat satellites exploiting their non-profit status and skirting campaign finance laws.

The more things Change…

***

Stanley Kurtz has much more on Senator Stealth’s ACORN ties.

Posted in: ACORN Watch

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Comment pages: « 1 [2]

#101

On August 22nd, 2008 at 4:41 pm, GaMidnightRider said:

Time to get out our pitch forks and torches and head to washington. VIVA LE REVOLUTION
#102

On August 22nd, 2008 at 4:46 pm, T-Bone said:

On August 22nd, 2008 at 4:22 pm, Dasher said:
Unless one registers on their own, they aren’t likely to vote anyway.

Don’t forget, they now will drive the bus around and pick you up to go vote. Of course, no electioneering allowed, wink, wink.
#103

On August 22nd, 2008 at 4:57 pm, Trollman said:

Gorebot said:

What’s this now? There’s vote-buying corruption being committed by DemLibs???

Well, I’ll just have to tune into Keith Olbermann tonight and get the resolutely objective low-down on this story!

You watch Olbermann too?! I thought I was the only one. I like comedy too. I don’t get to watch him very often, though, since my wife despises him. He makes me laugh, but he makes my wife angry.

Anyway, I doubt Olbermann will be able to get to that story. He is only on for 1 hour, and 1 hour is hardly enough time to get out his daily rant against Bush/McCain, much less anything else.

:^)
#104

On August 22nd, 2008 at 5:06 pm, Gull said:

Soooo let me see if I understand this ….

By hiding donations/payments to an ACORN front, the O campaign was in all probability busing and even paying all those Obamiacs and screaming meemee’s to attend his speaking engagements? Why, you don’t think he/they also registered them to vote, do you? And their deceased relatives?

But … but … ummmm … I thought those attendees were ordinary democrats — i.e., the hungry masses (most of whom walked barefoot thru snow and/or hot sand to get there) in search of HOPE!!!!

Well. The audacity of moi to question the One!!!
#105

On August 22nd, 2008 at 5:34 pm, WarEagle82 said:

This can’t be! John McCain eliminated the corrupting influence of money in politics YEARS AGO!

There must be some other explanation.
#106

On August 22nd, 2008 at 5:36 pm, Purple Avenger said:

Snow White did not return our calls looking for comment.
#107

On August 22nd, 2008 at 6:32 pm, purplepeep said:

Michelle sez:
A tipster points to shady business by CSI -detected by Maryland Democrat Al Wynn, of all people. His team, which filed an FEC complaint over the matter, linked several suspicious outfits used by his primary opponent to one address: 1024 Elysian Fields in New Orleans. That’s the address of CSI and ACORN.

Actually, to his credit, Larry Johnson’s “dead enders for Hillary” site - noquarterusa.net - had investigated this and came up with at least 2 dozen “groups” using that address as a front:

Money Laundering Scandal?
#108

On August 22nd, 2008 at 7:10 pm, Chief RZ said:

Typical of liberals–use “non-profit” groups to do your dirty work, then wash your hands. Good job again, Michelle, continue to expose The Truth.
#109

On August 22nd, 2008 at 7:22 pm, rowsdower said:

I think math boy posted on the wrong thread.
#110

On August 22nd, 2008 at 7:52 pm, FireBlogger said:

Michelle, thanks for bringing this out but I’m afraid the MSM will never let it see the light of day.

The fix is in.

Besides the Obamaniacs don’t care what this newbie did before 2008.
#111

On August 22nd, 2008 at 7:52 pm, nero said:

lol Jesse Malkin, Michelle’s husband, is an angry man that threatens those that take pics of him. Michelle, does he beat you at home if you take a pic of him?

http://malkin-watch.blogspot.com/2005/11/barmy-batty-berserk-bonkers-cracked.html
#112

On August 22nd, 2008 at 8:37 pm, tgusa said:

Well I would comment on this issue but if do I will be labeled a bigot or racist for doing so, so I wont. But I will say this, if circumstances proceed as they have been McCain wins in a landslide. I’m looking forward to next week when the nuts converge on Denver.
#113

On August 22nd, 2008 at 9:41 pm, Goldwater Knight said:

tgusa said:

Well I would comment on this issue but if do I will be labeled a bigot or racist for doing so, so I wont. But I will say this, if circumstances proceed as they have been McCain wins in a landslide. I’m looking forward to next week when the nuts converge on Denver.

What are you still scared when MJ said her and her crew beat up a few white crackheads? Beware MJ’s big black boots!
#114

On August 22nd, 2008 at 10:09 pm, stalban said:

Being a resident of Kansas City, my BS meter gets going given their involvement in “voting irregularities”. ACORN is nothing more than a shill for the democrats with their Chicago-lite antics.
#115

On August 22nd, 2008 at 10:21 pm, tgusa said:

You pegged it Goldwater Knight, Im a scared #$%^!@&* from here on out. The shadow of barack supporters such as ghettogal hangs ominously over my house. Oh by the way if you don’t hear from me sometime in the future, im prooly in jail for defending myself.
#116

On August 22nd, 2008 at 10:44 pm, tgusa said:

All eyes are looking toward baracks VP pick (the most hyped VP pick in our history, but nevermind that). My prediction, hillary, heck no, edwards, bayh, biden, anonomous dimwit… no. His wife, don’t you all get it, it’s the entire barack/Chicago connection. Cmon, everyone knows that the leaders of the democrats are women/with balls(not figuratively either they wear em at home about town,etc) so it makes prefect sense.
#117

On August 22nd, 2008 at 10:55 pm, Goldwater Knight said:

I’m not so sure MJ is ghetto. She’s just a typical psychotic; she probably carries a razor. I’ll have to admit though her online persona is pretty sexy. I doubt she could handle a white boy like me. Nahhh.
#118

On August 22nd, 2008 at 11:00 pm, tgusa said:

Ok Ok so one of us can date her and maybe teach her a thing or two. But like you said she probably carries a straight razor so leave don’t spend the night. Ya know, Mr. Goldwater Knight, I think you might be on to something, she prolly really wants to jump our bones. Cant blame her for wanting to move up in the world.
#119

On August 22nd, 2008 at 11:02 pm, Goldwater Knight said:

Cant blame her for wanting to move up in the world.

Well she’s a lawyer, she does ok on her own I suspect.
#120

On August 22nd, 2008 at 11:05 pm, tgusa said:

Well she thinks she might be someday, but there is always clicking your heels and wishing for Kansas too.
#121

On August 23rd, 2008 at 2:20 am, leepro said:

Let’s see… so that’s over a half-million ($564,342.21) for “STAGING, SOUND, LIGHTING”…right?

sheesh!
#122

On August 23rd, 2008 at 4:09 am, tbear44 said:

Ha, Obummer picks Biden. Good luck with that B.O.!
#123

On August 23rd, 2008 at 4:09 am, tbear44 said:

Ha, Obummer picks Biden. Good luck with that B.O.!
#124

On August 23rd, 2008 at 5:01 am, Danceswithdachshunds said:

Would anyone be surprised that they found a way to funnel some money to Air America too?
#125

On August 23rd, 2008 at 8:38 am, Robroy said:

Biden has chosen THE ONE !!
OR
Choose your poisen , Chosen One …..

What a joke and inevitable catastrophe all rolled into one !

The vanilla Al Sharpten !!!
HAH ! HAH !
#126

On August 23rd, 2008 at 8:57 am, JRob said:

This looks like magicians and other scoundrels call a shell game or a monte. Neither are a game of chance as the mark has no chance. Magicians have nothing on these guys when it comes to sleight-of-hand.
#127

On August 23rd, 2008 at 11:02 am, Politicalguano said:

BO is just another crooked black politician with a large’ “Anything for Sale” sign taped to his head. I am waiting until we see how much Chinese Commie money flows to Acorn to buy our politicians loyalty. BO says he is a citizen of the world - maybe less American and more loyal to the People’s Republic of China.
One thing for sure about BO - he sure stinks of corruption.
#128

On August 23rd, 2008 at 12:12 pm, Member-VRWC said:

$310,441.20 25-FEB-08 STAGING, SOUND, LIGHTING
$160,689.40 27-FEB-08 STAGING, SOUND, LIGHTING
$18,633.60 29-APR-08 STAGING, SOUND, LIGHTING

Seems to me the folks who were in charge of the event on 4/29 might want to get in touch with those for events in February.

They didn’t get their fair share of the loot!!!!!

While reading this post, I was overwhelmed by the dollars listed — tens of thousands here, hundreds of thousands there, millions in other places. And this is just the small potatoes stuff.

Whoever said “crime doesn’t pay” obviously never considered politics. There’s a bunch of folks like “Mr. Robinson” getting wealthy on all this sleazebag activity. And for what as a contribution to society?