ACORN And The Sandlers: Part IV of IV

American loves a comeback story, we extend olive branches to celebrities accused of horrible acts and repeated fits of bad judgment. The accused usually wage a PR campaign to restore their now blighted image. I like to refer to this as the celebrity rehab tour, Paris Hilton kissed and held little black children, other stars have attended rehab, jail (or both) and even taken anger management and sensitivity classes. The Association for Community Organizations for Reform Now (ACORN), has taken a slightly different but no less interesting approach Denial. In a February 2008 Huffington Post article, Bertha Lewis, CEO and Chief Organizer of ACORN, laid out the groundwork for ACORN's 2009 Foreclosure campaign.  

It is not hyperbole to say that the foreclosure crisis lies at the very heart of the broader economic collapse. The glut of foreclosed properties on the market forced housing prices into a tailspin, and banks loaded up with mortgage-backed securities and complex derivatives, unable to value or sell these assets, stopped lending to each other and the credit markets froze up, triggering the broader economic morass. A broad and successful economic recovery is impossible without directly addressing the record foreclosure rate that lies at its heart. ...However, since the crisis hit, the response has been a patchwork of voluntary, half-baked, and disjointed policies topped off with a $350 billion give-away to the companies that created this mess in the first place. Given the urgency of the crisis and the lack of attention paid to the families bearing the brunt of the economic meltdown, ACORN is taking its foreclosure campaign to a new level of militancy. 

It seems that ACORN has decided to overlook some key facts in the information that Ms. Lewis lays out. Most importantly, the sale of Golden West/World Savings to Wachovia and the maturity of billions of dollars worth of debt. Secondly, how were the Sandlers able to run unchecked in an era when ACORN became famous for taking banks to task for their dirty misdeeds. A 2006 report called The Monetary Impact of ACORN Campaigns:A Ten Year Retrospective, 1995-2004 by Lisa Ranghelli demonstrates that this new campaign is actually ACORN's standard operating procedure with a new package. 

Beginning in 2000 ACORN ran an aggressive national campaign to combat predatory lending practices by Household Finance, one of the nations largest subprime lenders. One outcome of that campaign was ACORNs victory in a class-action settlement with Household that was valued for the court at $150 million in payout to borrowers, including $72 million allocated for a Foreclosure Avoidance Program (FAP) and $3 million for the Fresh Start Program. As part of the settlement, Household also agreed to end the sale of financed credit insurance and other similar products, stop deceptive sales practices that included hiding points, fees, or prepayment penalties charged on a loan, and end billing practices which encouraged borrowers to fall behind on their high-rate second loans.

The Foreclosure Avoidance Program, which modifies loans that were unaffordable to borrowers, is already making a difference in homeowners lives since ACORN won the settlement. 

Certainly the Sandlers pick a pay loans would fall under the same categories as the above stated grievances with Household. Maybe the answer lies in a 2006 memo sent by Zach Polett, Project Vote Executive director and director of ACORN Political Operations. The memo: Proposed Process for Developing a 5-Year ACORN Political Business Plan explains the need for the creation of a business plan:  

Both to focus the strategic thinking of our political work and to put ourselves in position to attempt to raise the funds to support an ambitious, multi-year political program that grows out of ACORNs base and strengths, I believe we need a serious, well-argued business plan. On the fundraising side, places we will want to share this business plan include the millionaires club (Democracy Alliance), the billionaires (Sandlers, Soros, etc.), friends and opinion leaders in the voter engagement world (e.g., Frank Smith, John Podesta), SEIU, the voter participation foundations, etc....A key element of and argument for our plan why ACORN? is that ACORNs model and history of building ongoing, multi-issue, geographically-based, politically-engaged membership organizations, plus the large organizing staff and organizing culture that ACORN brings, mean that ACORN is the perfect entity to build the kind of long-term, permanent electoral capacity that progressives need to take back power in America.

 ACORN, the Sandler's, Soros and John Podesta? It seems like a right wing fantasy, but their it is in ACORN's own words. Podesta ran the Sandler and Soros funded Center for American Progress and the Obama transition team leader. During a December 2006 Year End/Year beginning ACORN staff meeting in New Orleans, Podesta traveled there to speak to staff in a December 15 2006 session entitled: Preparing for Power: The Next Cycle?Very interesting title and I am sure ACORN will state that it is a coincidence. Podesta also seemed to not only be yet another ACORN/Sandler link but also a go to guy for finance. In a management conference call dated March 20, 2006 it states that:

"WFP Ballot Line: Chris Entrikin to get sigs in SC and hiring an operative to help with it. OR the committee is not going to the ballot in 06. In WA Clare C meeting with honchos to see if going to ballot in 06. MA. Fundraising problems. AFSCME wants to block endorsement by state Fed. We did briefing w/John Podesta to help drum up $$. No word yet."

As ACORN began to prepare for power, they set the stage with a series of moves like breaking into foreclosed homes, looked good on TV, but had other ramifications, Zach Polett in a memo to ACORN Political Operations senior staff outlined these initiatives: 

RE: Thinking Ahead: Potential Political Operations Priorities & Projects 2007 2008In addition, the November 7th election shook up America electorally, creating a range of exciting opportunities for ACORN and its growing membership. By the voters rejecting the dismal record of the Bush administration, giving control of both Houses of Congress to the Democrats for the first time since 1994, and switching party control in a number of governors mansions and state legislatures, we have the opportunity to work on a range of issues at both the state and federal levels that would have been dead-on-arrival just a few weeks ago...

Sounds great and very beneficial to the poor right, but another internal document goes on to state "Electoral plans redistricting and holding congress and 2010 Gubernatorial races (47)...Senate in 2010c Questions about getting to 60 in 2008. So 2010 becomes an additional push for more seats. "Obviously preparing for power was not meant for the poor, but for the Democrats that are currently in office with the dubious help of ACORN and generous donations from the Sandlers. To some it may appear that the Sandler's donated more than just their money, but also structural support to ACORN and the Democratic Party. Besides site training by staff for ACORN, according to ACORN insiders, the Sandler funded Pro Publica referred the Advance Group to ACORN for crisis PR. Pro Publica has also been accused by some of managing the news.The phrase preparing for power resonates not only with ACORN and the Sandlers, but also with the events that I testified about and reported to the New York times in 2008. In September of 2007, I prepared a listing of all of the Chicago area donors in anticipation of a fundraising trip by either Karyn Gillette (Project Vote Development Director) or Zach Polett. Sometime after this fundraising trip, as I have testified in court, ACORN received the Obama donor list. In addition to this, Zach Polett gave a pep talk to staff at a retreat in November of 2007, and mentioned that he had the opportunity to supervise Barack Obama and that ACORN produces leaders and gets results.ACORN's results appear to be one sided in nature with direct benefit going to their strategic partnerships, the Sandler's, who have not returned calls for comment, could be held liable in the same way that ACORN attacked Household Finance. Lisa Ranghelli in her reports details how

... ACORN was directly influential in the successful pursuit of a multi-state lawsuit against Household by Attorneys General in every state, resulting in a settlement of $484 million in direct compensation to borrowers. During the Household campaign, ACORN also helped hundreds of borrowers in several states get thousands of dollars back from Household in fees, credit insurance, significant loan modifications, and in some cases refinances into better loans.

Good job ACORN, I already have my sign made, when are we going to the Sandlers home? Will ACORN assist the Attorney General in their probe of the Sandlers? California seems to be the point of origin for a great deal of these loans, and this week as Rep. Barbara Lee canceled an appearance at an ACORN awards ceremony (amidst the threat of an ACORN 8 protest), how many other California politicians will come to the aid of their constituents (!cough! Nancy Pelosi). Bertha Lewis was contacted directly for a comment for the conclusion of this series, she declined to comment, but her Huffington Post piece clearly outlines ACORN's position.

ACORN's campaign is working to put the human faces of foreclosure victims front and center while escalating the campaign tactics to include civil disobedience aimed at keeping people from losing their homes. Everything is on the table: disruption of sales, disruption of banking business, even refusing to be evicted or moving families back into their foreclosed homes. The urgency of the crisis demands no less.

The ACORN 8 has filed civil RICO charges in DC, NY and LA as well as 12 other states, from coast to coast, ACORN 8 offices have sprung up in die hard ACORN country and the response has been denial and the casting call from ACORN National for more protesters and more puff press releases. ACORN refuses to deal with its demons, it would rather pretend that they are not there. It is now up to Eric Holder and the Obama Justice Department to review the evidence presented and call their bluff.