Lawyer for Obama’s Acorn Group Is Concerned About Group’s Embezzlement and Possible Violations of Federal Laws

(p. A15) An internal report by a lawyer for the community organizing group Acorn raises questions about whether the web of relationships among its 174 affiliates may have led to violations of federal laws.

The group, formally known as the Association of Community Organizations for Reform Now, has been in the news over accusations that it is involved in voter registration fraud, charges it says are overblown and politically motivated.
Republicans have tried to make an issue of Senator Barack Obama’s ties to the group, which he represented in a lawsuit in 1995. The Obama campaign has denied any connection with Acorn’s voter registration drives.
The June 18 report, written by Elizabeth Kingsley, a Washington lawyer, spells out her concerns about potentially improper use of charitable dollars for political purposes; money transfers among the affiliates; and potential conflicts created by employees working for multiple affiliates, among other things.
It also offers a different account of the embezzlement of almost $1 million by the brother of Acorn’s founder, Wade Rathke, than the one the organization gave in July, when word of the theft became public.
“A full analysis of potential liability will require consultation with a knowledgeable white-collar criminal attorney,” Ms. Kingsley wrote of the embezzlement, which occurred in 2000 but was not disclosed until this summer.

For the full story, see:
STEPHANIE STROM. “Acorn Report Raises Issues of Legality.” The New York Times (Weds., October 22, 2008): A15.

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