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Did Jack McConnell Lie About ACORN During His Confirmation Hearing?

By Anita MonCrief

Originally Published at NetRightDaily.com.

The ACORN apologists over at Media Matters were hard at work last week as they took time to once again whitewash or ignore the truth in order to protect ACORN. Even though Media Matters claims that my article titled “Radical Judicial Nominee Jack McConnell’s Disturbing ACORN Connections” is “nothing new” and the connections I drew in the article “between ACORN and progressives” are “even weaker than previous conservative attacks,” Media Matters apparently felt a need to try to refute it. Why write about “nothing new”?

Unfortunately for Media Matters, its arguments only work as long as its readers are content with ignoring key facts about ACORN and its role in politics, elections and government itself.

As stated in my previous article posted at many websites, including BigGovernment.com, there are several disturbing connections involving Jack McConnell, the lead paint litigation, and ACORN. Keeping in mind that this is the same “news organization” that still insists that ACORN’s alter ego Project Vote was totally separate from ACORN when Barack Obama worked for them, I will let ACORN’s own words explain its involvement in the Sherwin-Williams California case. The excerpt below is from page 59 of an ACORN report available here (click to enlarge):

Why would Media Matters ignore ACORN’s own words? For the same reason it tries to dismiss my article as a conservative attempt to use ACORN as the “boogeyman.” By omitting the fact that I worked for ACORN and testified against ACORN/Project Vote in 2008, Media Matters hopes to downplay the significance of my knowledge of ACORN’s inner workings and its relationships with others.

In fact, while in the DC office of ACORN/Project Vote I worked on projects that allowed me to discover that among the donors to Project Vote was the private law firm involved in the California lead paint case.

Court documents show that the petitioners, California counties and cities, had not only hired Jack McConnell’s firm, Motley Rice, but also “Cotchett, Pitre & McCarthy” (and others) to represent them against the paint companies (interestingly, the Santa Clara County counsel who initiated the lead paint case was appointed by the Obama administration to the Justice Department last year).

Not only did Cotchett, Pitre & McCarthy give over $10,000 to ACORN’s Project Vote, they were ACORN’s own attorneys. The connection between Motley Rice, ACORN and Cotchett, Pitre & McCarthy is crystal clear in a reference here from page 31 of a 2006 report by ACORN:

“Amy Schur, directing this effort, was vigilant, and having dogged them all year, has constructed a legal strategy with ALERT and the Cachet firm [sic Cotchett] that has now brought the cities of San Diego and Los Angeles into the lawsuit.”

ACORN founder Wade Rathke mentions donor/attorney Naill McCarthy by name and also explains the lead paint litigation strategy in his book Citizen Wealth.

Wade goes on to explain how organizations like ACORN use litigation to gain power.

To recap for the Media Matters readers who may be used to having their news filtered:

1. ACORN staged a NATIONWIDE campaign against paint company Sherwin Williams.
2. ACORN turned down settlements to clean up the damage because it wanted money.
3. ACORN and its attorneys were in the final stages of given ACORN a seat in the negotiation process in the California case.
4. Cotchett, Pitre & McCarthy represented ACORN in similar cases against Household Finance and Wells Fargo.

Don’t be fooled by the misspelling in the ACORN report, Cotchett, Pitre & McCarthy is the same law firm that successfully represented ACORN in the Wells Fargo case.

“Wells Fargo Financial, Inc., the consumer finance subsidiary of Wells Fargo & Company, and the law firms of Cotchett, Pitre & McCarthy (Burlingame, Calif.) and Miner, Barnhill & Galland, P.C. (Madison, Wisc.) said they have agreed to settle a class action lawsuit…

“In the proposed settlement, Wells Fargo Financial commits to continue for three years several improvements it had already put into practice, which have further strengthened its nonprime real estate-secured lending practices, and to implement other practices to benefit its customers. It also agrees to enact a default relief program, earmarking $2.4 million to provide relief to qualifying class members whose loans have become delinquent by more than 60 days. Qualifying class members who submit claims may also be entitled to cash payments, which will be determined using a formula to disburse up to $4.4 million.

“The Association of Community Organizations for Reform Now (ACORN), a party to the lawsuit, had alleged that Wells Fargo Financial failed to adequately disclose points and prepayment penalties and had inaccurately reported loan balances on some of its California customers to credit reporting agencies.”

ACORN involvement in the lead paint issue was tremendous. Besides releasing reports and, staging protests (both national and international), ACORN even dedicated a separate website to the cause.

 

ACORN demonstrations included:

 

A reasonable person would say that given ACORN’s relationship with former Rhode Island Attorney General Sheldon Whitehouse and current United States Senator (an enthusiastic supporter of Jack McConnell’s nomination), and its work with Cotchett, Pitre & McCarthy on settlements, does raise the question as whether Motley Rice’s agreement with DuPont paint deserves more scrutiny, as noted by Chuck Moellenberg of Jones Day in Pittsburgh, who has helped defend paint companies:

“It’s odd and I think unlawful that the Attorney General, in a sense, appropriated the DuPont settlement moneys for his own purposes. It’s curious part of the money went to his alma mater, another part w[ent] to pay off a pledge made by Motley Rice to a Boston hospital, then the rest of the money went to the Children’s Health Forum, which is not based in Rhode Island at all.”

The fact that ACORN Advisory Committee member and long time ACORN ally Henry Cisneros is on the board of the Children’s Health Forum could be considered a coincidence to the folks over at Media Matters, but what if I were to tell you that the Mayor of Los Angeles Antonio Villaraigosa was on the advisory committee of the Children’s Health Forum?

 

In 2009 Cisneros was honored for his commitment to ACORN while Villaraigosa engaged in crisis PR for the group. Side note: Villaraigosa is also board members of the Institute for America’s Future, a group that goes out of its way to protect ACORN interests.

 

Either Jack McConnell’s law firm Motley Rice was totally oblivious to the FACT that Cotchett, Pitre & McCarthy were in the FINAL stages of securing ACORN a seat next to them at the negotiating table or McConnell lied during his confirmation hearing (see transcript below):

SEN. KYL: “I understand. My five minutes is up. It’s kind of hard to have continuity in questioning when we have this kind of limitation. I understood the point you were originally trying to make, but if I can — and I have a couple more minutes’ worth of questions just as a follow up to this.

“My point really was not only, is it right to seek this as a movement, but whether you actually encourage these lawsuits in other states — you or your law firm — did you?”

MR. MCCONNELL: “No, Senator, we did not.”

SEN. KYL: “Are you aware of any role by the Association of Community Organizers for Reform Now — that’s ACORN — in how those cases might have come to be filed?”

MR. MCCONNELL: “No, neither I nor my firm have had any relationship with ACORN.”

President Clinton said that his answer depended upon what the meaning of the word is is. McConnell might say that it depends upon what a relationship is. Apparently McConnell did not want to acknowledge any kind of relationship to ACORN by the time his confirmation hearing was held. Still, McConnell, his firm and ACORN are all connected. McConnell’s key role in the lead paint litigation in Rhode Island, where ACORN had a significant presence, and his law firm’s subsequent participation in the California lead paint case on the side of ACORN and its California law firm contradict his unqualified assurance that neither he nor his firm “had any relationship with ACORN.”

To quote from ACORN Report shown in the screen shots above:

p. 38: “Luck would have it that the major CA lawsuit against the paint industry is being handled by the same law firm handling our Wells Fargo case [Cotchett, Pitre & McCarthy]–and they want to work together on the lead case. Over the last month we have been able to convince several major CA cities and school districts to join the lawsuit. In a potentially important precedent for our role in these types of cases, we are in the final stages of negotiating a seat for ALERT (ACORN Law for Education, Representation & Training) on the legal team for the case, which puts us at the table–and in the settlement negotiations.”

P. 59: December 2006–“ACORN gets 2 cities and 2 school districts in CA to join a lawsuit against paint companies”

Anita MonCrief is a contributing writer to NetRightDaily.com for Americans for Limited Government.

Dodd Financial Takeover Bill Recreates ACORN Within Government Agencies, Research Shows

By Kevin Mooney

Does the now passed so-called Senate financial overhaul bill re-establish the controversial organization, ACORN, as part of new government agencies? Even worse, does the legislation intend for those new government agencies to actually replicate ACORN’s questionable financial practices?

These questions are explored in an alarming report from Brian Johnson, a meticulous researcher with Americans for Tax Reform (ATR). Sen. Chris Dodd’s 1,400 page bill could possible recreate ACORN within the framework of government agencies, he suggests.

Even as the New York Times and other media outlets remains fixated on the “risky behavior” of financial companies in its reporting, it should carefully consider the motivations of federal office holders.

Johnson’s could bring some balance and perspective to the newspaper’s ongoing coverage of Dodd’s bill. While it’s important for The Times and other major publications to report on the trajectory of pending legislation, they should focus more attention on the policy details. Sen. Chris Dodd’s finance bill would possibly recreate the controversial ACORN within new government agencies, according new research. It’s a debatable proposition but the research is precise and detailed enough to warrant coverage and attention.

Per Johnson, Section 1013(b)(2) of the Dodd bill a community affairs unit: “The Director shall establish a unit whose functions shall include providing information, guidance, and technical assistance regarding the offering and provision of consumer financial products or services to traditionally underserved consumers and communities.”

Johnson writes that this is a similar purpose as ACORN, which “on its website, describes itself using similar language.” He points to this statement, “ACORN is the nation’s largest grassroots community organization of low- and moderate-income people… ACORN has been building community organizations that are committed to social and economic justice, and won victories on thousands of issues of concern to our members, through direct action, negotiation, legislative advocacy and voter participation.”

Wrote Johnson, “Although ACORN’s website uses more obvious language, the goals of both the would-be Community Affairs department and ACORN are the same: force the government to provide loans to people who otherwise wouldn’t qualify for it.” Specifically, the community affairs unit’s specific task would be to assist organizations that support “underserved consumers and communities” like ACORN, probably to achieve community development block grants.

In 2009, the $787 billion “stimulus” included some $3.9 billion in grants that non-profit community development housing groups are eligible for. Therefore, the community affairs unit could become a means of directing the allocation of those grants.

According to Section 1017 of the bill, the Consumer Financial Protection Bureau that houses the community affairs unit would operate on base funds directly from the operating expenses of the Federal Reserve Board of Governors, rising from $390 million in 2011 to $468 million in 2013. The section would also establish a “consumer financial protection fund” that would charge penalties and fines to lending institutions to be redistributed to “victims,” presumably of “predatory” lending. This will enable the community affairs unit to exert leverage upon lending institutions to make questionable loans once again that were the ACORN Housing Corporation’s trademark.

The political gamesmanship that has consumed the most recent reports in The Times is not unimportant. But they do not cut into the substance of the proposed public policy changes. Johnson’s research cuts right to the heart of financial practices that have severe ramifications for the American economy.

Here is how Johnson concludes his report, “The genesis behind the current economic downturn is consumers defaulting on real estate loans, a nearly universally accepted fact. Senator Dodd’s bill mimics this precarious practice by instituting a Community Affairs department. Though the goal, increased homeownership, of such programs is noble, such policies will only lead to another housing bubble, and burst.”

This is kind of savvy analysis that would greatly benefit readers who remained uninformed as to the particular elements of Dodd’s legislation. Instead The Times places greater weight in needling the opposition.

“Senate Republican leaders, adopting an election-year strategy to oppose virtually every initiative supported by the Obama administration, also voiced loud criticism of the legislation while trying to insist that they still wanted tougher policing of Wall Street,” a recent report says.

“The Republicans, who had a strong role in drafting the bill and won a number of their amendments, seemed to be calculating that voters these days trust the federal government even less than Wall Street and what accept the Republicans’ contention that Democrats in Washington are in cahoots with bank behemoths like Goldman Sachs,” the report continues.

If there a compelling rationale behind greater government control over industry as The Times implies in its reporting, than it should offer up more details about the particular elements of the legislation.

On April 1st, ACORN, which stands for the Association of Community Organizers for Reform Now, announced that it was dissolving its existing national structure. However, former and current ACORN insiders have said that ACORN merely remarketing and rebranding itself so that it will be better positioned to receive new donations in the wake of last year’s scandals.

“Always note the date, April 1.” Marcel Reid, a former board member has observed. “ACORN is not dissolving, it may be morphing, but it is still in business and it is still in a position to receive funding, although it may be done under different names.”

Reid current chairs ACORN 8, a whistleblower group named for the eight board members who first revealed the questionable financial transactions that became the subject of congressional investigations. ACORN 8 continues to press for a forensic audit and a wider investigation.

Some of renamed ACORN affiliates tracked by the House Oversight Committee are as follows:

In California, ACORN is now the Alliance of Californians for Community Empowerment (“ACCE”). In Massachusetts, Rhode Island, and Connecticut, ACORN is New England United for Justice. In New York, ACORN is New York Communities for Change. In Arkansas, ACORN has become Arkansas Community Organizations (“ACO”). In Louisiana ACORN is “A Community Voice.” In Missouri, ACORN is Missourians Organizing for Reform and Empowerment (“MORE”). In Washington State, ACORN is Organization United for Reform (“OUR”) Washington. In Minnesota, ACORN is Minnesota Neighborhoods Organizing for Change. In Pennsylvania, ACORN has become the Pennsylvania Communities Organizing for Change (“PCOC”) and Pennsylvania Neighborhoods for Social Justice, Inc. In Texas, ACORN is now the Texas Organizing Project.

Finally, the ACORN Housing Corporation recently also changed its name to Affordable Housing Centers of America. It remains eligible for federal funding to date.

Kevin Mooney is a contributing editor to ALG News Bureau and the Executive Editor of TimesCheck.com.

American Federation of Teachers Funded ACORN After Video Scandals Hit

By Kevin Mooney

Union officers who are “shocked and angered” over proposed budget cuts in N.J. that will supposedly harm young students have thus far failed to find their voice where the spending habits of their respective national organizations are concerned.

A good starting point would be with the $352,510 The American Federation of Teachers (AFT) funneled to ACORN in 2009 just as the organization’s employees were caught on videotape describing to uncover investigators how they can arrange for legal loans, set up brothels, advance child prostitution and human trafficking.

“It looks like the AFT essentially outsourced ACORN to do the union organizing work,” Nathan Mehrens, a counsel to Americans for Limited Government (ALG). “This is incredibly ironic given that many unions consider outsourcing evil and almost criminal. It might also be worth asking a rhetorical question of why does the union need to outsource work to shady operatives? If the union's services were so desirable then the teachers would be beating a path to their door and not the other way around.”

The AFT, which is part of the AFL-CIO, is not alone here in its support for ACORN.

In fact, U.S. Labor Department financial disclosure forms show that the teachers unions as whole have contributed over $1.3 million to ACORN and its affiliates for political activities and representational activities, since 2005. Some of the larger donations include $100,000 from the National Education Association in 2008 and $200,000 in 2007 for political activities. The Teachers AFL-CIO Local Union 2 contributed $406,730 in 2008, $457,778 in 2007, and $346,300 in 2006 for representational activities.

The mission statements and public pronouncement of the AFT and NEA are instructive here in that both organizations posture as strong advocates for school children, teenagers and their families.

“Since its beginning, the National Education Association (NEA) has been ahead of its time, crusading for the rights of all educators and children,” the union declares on its web site. Not to be outdone in children caring department, the AFT’s vision for community betterment transcends national boundaries.

“The mission of the American Federation of Teachers, AFL-CIO, is to improve the lives of our members and their families; to give voice to their legitimate professional, economic and social aspirations; to strengthen the institutions in which we work; to improve the quality of the services we provide; to bring together all members to assist and support one another; and to promote democracy, human rights and freedom in our union, in our nation and throughout the world.”
As it turns out, ACORN has its own international vision.

ACORN staffers in Baltimore were caught on video instructing James O’Keefe, the undercover filmmaker, and his partner Hannah Giles how they could falsify documents and obtain benefits for 13 “very young girls” from El Salvador.

Former ACORN insiders who have formed their own alternative whistleblower group in response to financial scandals claim that funds are misappropriated and that there is no guarantee a particular donation will actually be used for its stated purpose.

Corporations and foundations that have funded ACORN in the past have said that they are longer supporting the organization as a result of the on-going scandals. House and Senate members also moved to cut off funding albeit temporarily.

Up until 2009, it was plausible for supporters and financial backers to claim that they were unaware of criminal activities. But the 2009 LM-2 form available through the Department of Labor shows that the AFT’s support for ACORN continued even as the videotapes were being released.

Meanwhile the teachers unions have turned their ire on N.J. Gov. Chris Christie for imposing spending restraints they claim are “irresponsible” and damaging to the future of education. Here is a statement from Barbara Keshishian, president of the NEA’s N.J. affiliate:

“We are shocked and angered that Gov. Christie has taken his attack on public schools to an irresponsible new low,” she said. “After cutting $1.5 billion from education in the first three months of his administration, he is now calling on local residents to make his cuts even deeper and more harmful to students by voting down their local school budgets.”

“Gov. Christie apparently has no qualms about robbing New Jersey's 1.4 million students of their chance at a quality public education,” she continued. “But to do so while insisting on a significant tax cut to New Jersey residents who earn over $400,000 per year is an inexplicable and unconscionable position to take.”

Whatever the merits or defects of Gov. Christie’s budget proposal, union officials who are genuinely concerned about the young people they claim to champion should re-evaluate their own internal financial transactions.

Although ACORN announced that it has officially dissolved as of April 1, an internal memo from Bertha Lewis, the CEO and Chief Organizer, made it clear the organization and its national apparatus still exists under new names and are soliciting continued support. Moreover, Brooklyn prosecutors have also cleared ACORN of any wrongdoing after a four month investigation that has come under criticism. But it’s evident the organization has thus far managed to sidestep serious investigations.

On Wednesday, a federal appeals court temporarily blocked a previous ruling that said it was unconstitutional for Congress to cut off funding for ACORN. But even allowing for this setback, the renamed affiliates remain well positioned to receive continued support from foundations, corporations and individual donors. In fact, public funding is only a small percentage of its financial base.

The lead ACORN organization registered in Arkansas and New Orleans has received $3 million from the Marguerite Casey Foundation, $821,000 from the Robin Hood Foundation, $595,000 from the Edna McConnell Clark Foundation and $65,000 from the Annie E. Casey Foundation, according to the Capital Research Center (CRC). That’s not an exhaustive list.

Apparently, the organization formerly known as ACORN could remain a potent force through the 2010 elections and beyond. But should self-described child advocates be part of this coalition?

Unfortunately, the disclosure requirements that have made it possible to connect ACORN with its labor benefactors are being rolled back under President Obama; a byproduct of lobbying efforts by union bosses.

Even if the teachers unions publicly distance themselves from ACORN, verification could be problematic. Why not call for greater transparency, openness and accountable “for the children” so concerned citizens can keep taps on the financial support for organizations that wink and nod in the direction of criminal enterprises?

Kevin Mooney is the Executive Editor of TimesCheck.com and a Liberty Features Syndicate contributor for Americans for Limited Government.

ACORNs Partisan Activities on Behalf of Obama should be Re-Examined

By Kevin Mooney

ACORN’s questionable financial transactions and political activity were explored by the New York Times in the months leading up to the 2008 presidential election. But this reporting was abruptly cut off. Now would be a good time to reactivate the investigation since the organization is supposedly disbanding.

Just a few months ago, ACORN denied that it would be changing its name and reconstituting itself. But that process is now in motion as various nationwide affiliates assume more generic labels.

As of April 1st, the organization was discontinuing operations and disbanding in response to financial shortfalls and ongoing scandals. But policy analysts who are familiar with ACORN, which stands for the Association of Community Organizers for Reform Now are convinced the news media has been duped and that the nationwide network liberal activists are merely reconstituting themselves.

Even as the organization supposedly melts away, state chapters are obtaining nonprofit status on their own as advocacy groups under section 501(c)(4) of the tax code, according to Matthew Vadum, a senior analyst and editor with the Capital Research Center (CRC). This is significant because 501c4 status makes it possible for the new entities to conceal their financial activities.

There is some history here where The New York Times is concerned. In the months leading up to the 2008 presidential election, former ACORN insider Anita MonCrief served as a confidential source to Stephanie Strom, a Times reporter. She wrote the following reports based on information furnished by MonCrief:

“1.) ‘Funds Misappropriated at Two Nonprofit Groups’ July 9, 2008; 2.) ‘Head of Foundation Bailed Out Nonprofit Group After Is Funds Were Embezzled’ August 16, 2008; 3.) ’Lawsuit Add to Turmoil for Community Group’ September 9, 2008; 4.) ‘On Obama, ACORN and Voter Registration’ October 10, 2008; 5.) ‘ACORN Working on Deal to Sever Ties with Founder’ October 15, 2008; and 6.) ‘ACORN Report Raises Issues of Legality’ October 21, 2008.”

But the exposure of ACORN came to an abrupt halt when MonCrief provided hard proof of the close connection between the controversial, self-described community group and the Obama campaign, Heather Heidelbaugh, a Pennsylvania attorney explained in testimony.

“The New York Times articles stopped when Ms. Moncrief, who is a Democrat and a supporter of the President, revealed that the Obama Presidential Campaign had sent its maxed out donor list to Karen Gillette of the Washington, DC ACORN office and asked Gillette and Ms. Moncrief to reach out to the maxed out donors and solicit donations from them for Get Out the Vote efforts to be run by ACORN,” Heidelbaugh said in her testimony.

Heidelbaugh continued, “Upon learning this information and receiving the list of donors from the Obama Campaign, Ms. Strom reported to Ms. Moncrief that her editors at the New York Times wanted her to kill the story because, and I quote, `it was a game changer.’ That’s when Ms. Moncrief telephoned me on October 21, 2008. Ms. Strom never wrote another article about ACORN for the New York Times for the remainder of the period before Election Day, i.e. November 4, 2008.”

Heidelbaugh who served on the executive committee of the Republican National Lawyers Association (RNLA), filed an injunction against ACORN on voter registration fraud allegations in Harrisburg, Pa. in 2008. MonCrief, a former employee of ACORN’s Project Vote affiliate, provided offered her own testimony at the injunction hearing. It is evident from MonCrief’s remarks that ACORN and Project Vote may have violated federal laws, according to legal experts familiar with her testimony.

It was revealed, for instance, that the Obama campaign paid the ACORN affiliate Citizens Services International (“CSI”) almost $900,000 for voter registration, voter identification, turnout and get-out-the-vote services. The Obama campaign reported to the FEC that the expenditure was for “sound and lighting equipment,” which does not exist, according to the testimony.

Most recently, The Times ran a piece focusing on the “path forward” for the revamped ACORN organization. Apparently, a letter has been released just to The New York Times that reaffirms the leadership’s commitment to various liberal causes. Here’s how it is reported: “You will continue to hear from Acorn — in the mail, on the Web, and in the media,” says the letter, a draft of which was provided to The New York Times. “And we need your continued support to counter the vicious antifamily, anti-minority, anti-immigrant attacks of the Republican right.”

The new affiliates operating without the ACORN name will persist in working for health care reform, immigration reform and affordable housing, according to the letter, which has been dispersed to the approximately 120,000 members on ACORN’s email list, the report says.

Going forward, reports should challenge some assertions made in the “internal document” that The Times has acquired. These new organizations are making a clean break from ACORN in that they will not be using any ACORN money and will be comprised of lawyers and accountants untouched by the previous entity.

As it was, there were always dozens of affiliates and allied organizations pushing a far-left agenda that did not use the ACORN label.

The Times should activate the investigations that were underway in the months leading up the 2008 election and carefully examine how taxpayer funds were allocated between organizations that were precluded by law from participating in partisan policy activity.

Kevin Mooney is the Executive Editor of TimesCheck.com and a contributing editor to ALG News Bureau.

ALG Video: RNC vs. GOP over ACORN

ALG Editor’s Note: In the following featured video release from ALG News, Republican National Committee Chairman Michael Steele finds himself pitted against Republican elected officials, whose policies he is supposed to represent. Recently, he said ACORN CEO Bertha Lewis has done "a phenomenal job" much to the chagrin of Republican lawmakers and Americans across the nation who believe ACORN is a corrupt organization that has no business receiving tax dollars:

Too Hot Not To Note: Rep. Michele Bachmann On The Criminality Of Acorn



ALG Editor’s Note: In the following featured video from the Washington News Observer, Michele Bachmann (R-MN) discusses the ACORN scandal and what Congress is doing to defund ACORN.

Rep. Michele Bachmann On The Criminality Of Acorn

 

Too Hot Not To Note: Congressman John Carter on ACORN and Charlie Rangel

ALG Editor’s Note: In the following featured interview by the Washington News Observer, Congressman John Carter (R-TX) talks about defunding ACORN and upholding the rule of law against Congressman Charlie Rangel and removing him as Chairman of the House Ways & Means Committee:

Congressman John Carter on ACORN and Charlie Rangel

ALG in the News: Carter Clews on MSNBC


ALG Editor’s Note: In the following featured video, Executive Editor Carter Clews is on “The Morning Meeting” about the current ACORN scandal.


Editorial: Breitbarts BigGovernment.com Nails ACORN, Time for Senate to Act Again

Today, the House voted 345-75 to approve the “Defund ACORN Act.” This followed action in the Senate this week, which voted 83-7 to prohibit ACORN from receiving housing grants from the Department of Housing and Urban Development. The House legislation will now proceed to the Senate.

This week’s votes in the House and Senate followed the highly publicized disclosure of undercover videos revealing operations offering assistance to underaged prostitutes exclusively reported by Andrew Breitbart’s Big Government news portal. On the videos, ACORN workers were shown giving advice on how to evade taxes, set up a brothel, and even use minors as prostitutes.

Andrew Breitbart, BigGovernment.com, and new media deserve the credit for this taxpayer victory for bringing sunlight to the long-corrupt ACORN group, for forcing the controlled media to finally pay attention, and for moving the politicians to finally take action to defund the racket.

The revelations have already led to the U.S. Census revoking its partnership agreement with ACORN in the official 2010 Census count, as ALG News previously reported.

According to the legislation, no organization may receive funding that has “been indicted for a violation under any Federal or State law governing the financing of a campaign for election for public office or any law governing the administration of an election for public office, including a law relating to voter registration… had its State corporate charter terminated due to its failure to comply with Federal or State lobbying disclosure requirements… [or] has filed a fraudulent form with any Federal or State regulatory agency.”

The impact of the bill is far-reaching. ACORN is currently eligible for more than $3 billion under the $787 billion “stimulus” spending bill, and $5.5 billion from the 2010 budget. Since 1994, ACORN has received at least $53 million from American taxpayers, according to the Washington Examiner. ACORN is also eligible for over $500 million of an “affordable housing fund” created under the $300 billion Foreclosure Prevention Act passed this past summer.

According to the Consumer Rights League, ACORN receives some 40 percent of its funding from taxpayers annually. This fiscal year it has received $1.6 million received thus far for housing services.

These votes have been a long time coming. ACORN Housing Corporation has had a troubled history in giving out cheap mortgages that played a key role in weakening credit standards. In addition, ACORN is under investigation for voter registration fraud in several swing states, including Ohio, Indiana, Wisconsin, Nevada, New Mexico, North Carolina, and Missouri, and has a long history of such fraud in Ohio, Pennsylvania, Washington, Michigan, Wisconsin, and New Mexico.

Both the House and Senate have acted, but now the Senate must act again. This week, the Senate only voted to defund ACORN’s funding via the Department of Housing and Urban Development. The House version completely defunds this despicable and corrupt group. The Senate should act immediately on the House version of the legislation, and once and for all end ACORN’s horrifying abuse of the taxpayers’ trust and the federal treasury.

ACORN: Open for Business

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