ACORN report list problem areas

NY Times:

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.

...

Disclosure of her report, which was distributed to Acorn and 10 affiliates, increases pressure on the organization at a particularly troublesome time. Besides the inquiries into its voter registration efforts, Acorn faces demands for back taxes by the Internal Revenue Service and various state tax authorities. At the same time, foundations that have backed Acorn are withholding support.

Ms. Kingsley’s concerns about the way Acorn affiliates work together could fuel the controversy over Acorn’s voter registration efforts, which are largely underwritten by an affiliated charity, Project Vote. Project Vote hires Acorn to do voter registration work on its behalf, and the two groups say they have registered 1.3 million voters this year.

...

If a RICO case is filed it appears this report may be used for addition counts to go along with the vote fraud charges that have been alleged by various state and federal law enforcement organizations. The concerns about the tax exemption appear to be greater than the vote fraud considerations. I think they should be worried about both.