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ACORN Theft 5 Times More Than Disclosed

From a discreet New York Times:

From the October 2, 2009 Louisiana subpoena (a pdf file). (Click to enlarge.)

Amount Embezzled From Acorn Is Disputed

By CAMPBELL ROBERTSON

October 6, 2009

NEW ORLEANS — An internal review at Acorn, the embattled community organizing group, revealed that its founder’s brother had embezzled $5 million from the group, five times more than the amount disclosed, according to a subpoena served Monday by the Louisiana attorney general. But the organization’s chief executive denied that any internal review had revealed that figure.

The subpoena, part of an investigation into accusations of state tax violations and obstruction of justice at Acorn, said the internal review was raised in a board meeting in October 2008 that was attended by Bertha Lewis, the chief executive.

“Current high-ranking members of Acorn have publicly acknowledged that the embezzlement did in fact occur, but the exact amount of the embezzlement was unknown,” the subpoena said. “It is still unclear if some of the monies embezzled are from state, federal or private funds.”

In a phone interview, Ms. Lewis acknowledged that the internal review found that Dale Rathke, brother of Wade Rathke, the founder of Acorn, had embezzled money from Acorn and affiliated charitable organizations in 1999 and 2000. But she said that the review had found that the amount embezzled was a little less than $1 million, a figure that has already been publicly disclosed and acknowledged.

She said the $5 million figure came from two former directors who had since been voted off the board.

“Wherever they got that is absolutely false,” Ms. Lewis said.

The Rathkes repaid Acorn about $200,000 and an anonymous donor paid the remainder, she said.

Note how much of this New York Times article including the headline is devoted to giving ACORN’s side of the story.

The is the standard procedure for The Times.

The only time we ever hear any bad news about their sacred causes is when they are marshalling a defense.

But she said that the review had found that the amount embezzled was a little less than $1 million, a figure that has already been publicly disclosed and acknowledged.

Not by the New York Times, it wasn’t.

You can bet this is the first time the readers of The Times are hearing any of this.

In fact, the New York Times artfully ignores the fact that ACORN covered up this embezzlement for eight years.

From Discover The Networks:

On June 2, 2008, Wade Rathke stepped down from his position as ACORN’s chief organizer. Shortly thereafter, ACORN publicly acknowledged that Dale Rathke — Wade’s brother — had embezzled nearly $1 million from ACORN and its affiliated groups in 1999 and 2000. ACORN further admitted that for eight years its executives had kept this information secret from almost all of their organization’s board members and from law-enforcement authorities, while Dale remained on ACORN’s payroll.

(ACORN’s public admission only came to pass because a group of foundations and private donors had recently learned of Dale Rathke’s crimes and were preparing to go public with them.)

According to ACORN president Maude Hurd, “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.”

But, sure, we should believe ACORN now.

This article was posted by Steve on Tuesday, October 6th, 2009. Comments are currently closed.

5 Responses to “ACORN Theft 5 Times More Than Disclosed”

  1. Helena says:

    She said the $5 million figure came from two former directors who had since been voted off the board. “Wherever they got that is absolutely false,” Ms. Lewis said. The Rathkes repaid Acorn about $200,000 and an anonymous donor paid the remainder, she said.

    Two things here. First – just because the $5m figure came from two directors who have since been kicked out, don’t the statements of two (2!) separate people (who were presumably in a position to know) be investigated, publicly and “transparently?”

    And second – ACORN admits Rathke stole around $1m. Rathke and co. have repaid $200,000. The remainder – they make it sound like a tiny left over bit – but in fact it’s $800,000 – was paid by an ANONYMOUS donor? ACORN (up to now) is a 501c3. Why is a felony charge against them allowed to be settled by an anonymous donor? If this is legal, which it shouldn’t be, it is certainly right and proper for a whistleblower to step forward and tell the public who paid the $$ to cover Rathke’s butt. It is obviously someone/some entity with a political stake in ACORN. Anonymity here should not be allowed.

  2. Confucius says:

    Amount Embezzled From Acorn Is Disputed

    Sure, because the amount embezzled is the important part.

  3. MinnesotaRush says:

    Here’s a really dumb question.

    Why hasn’t the IRS removed ACORN’s 501c3 status?

    Never mind.

  4. proreason says:

    I only caught a bit of Meghan Kelly’s interview of Wade Rathke last week, but one thing was clear.

    He learned the art of lying from the same playbook as the Moron.

    If the Wadester was black, he would be the president today.

  5. Liberals Demise says:

    The only REAL dispute is how much. Five million is just the tip ….. if they dig under the rotting flesh they will hit the “BIG” stink!


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