ACORN transfered charity funds to pay lobbyist, political expenses

Washington Post:

Documents released by a Senate Republican on Thursday show that leaders of the community organizing group ACORN transferred millions of dollars in charitable and government funds meant for the poor to other arms of ACORN with political and sometimes profit-making missions.

ACORN's community organizing groups, now in trouble after some embarrassing undercover videos were taken in their offices, used more than half of their charitable and public funds in 2006 to pay other ACORN affiliates, according to an analysis by the tax staff of Sen. Charles E. Grassley (R-Ia).

On Thursday, Grassley called it a "big shell game" and said ACORN donors might be surprised at how the liberal group known for helping the poor get housing and health care was spending their money. He urged the Internal Revenue Service to take a closer look.

"Similar to the use of charities by [convicted lobbyist] Jack Abramoff, charities are being used to raise monies which are then funneled to other charities or to other organizations for purposes other than what the donor may have intended," according to the Grassley report. "In general, the flow of money among the ACORN family of organizations is a big shell game. Dollars raised for charitable [purposes] appear to be used for impermissible lobbing and political activity."

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There must be something illegal about this. At least there was when Abramoff was doing it. At best it demonstrates yet more evidence of the organizations attitude toward compliance with the letter ans spirit of the law. It is yet another reason why there should be an independent RICO investigation of the organization.