New Documents Expose ACORN’s Lies to the American People

ACORN’s chief organizer and CEO Bertha Lewis appeared on Bill O’Reilly’s ‘The O’Reilly Factor’ on May 29, 2009 to combat the growing criticism that ACORN is a criminal enterprise that is operating as an arm of the Democrats. Well, a watered down version of Bertha Lewis appeared, for those who are not familiar with her colorful character see Youtube. ACORN spokespersons have never had a problem lying on camera, but under oath is a different story (as witnessed by Karyn Gillette’s swift departure from a courtroom in Pennsylvania back in October of 2008). ACORN National spokesman Scott Levenson and other ACORN spokespersons have defended their actions and blamed rogue employees. During ‘The O’Reilly Factor’, Lewis asserted that she is in charge and that no criminal activity will be tolerated on her watch. Really.

For background, Lewis assumed control over the organization, that is, became Chief Organizer after it was revealed that ACORN’s founder Wade Rathke had covered up the embezzlement of almost $1 million dollars by his brother Dale, ACORN’s longtime chief financial organizer. The embezzlement occurred around December of 2000 and was reported by the New York Times

“The brother, Dale Rathke, embezzled nearly $1 million from Acorn and affiliated charitable organizations in 1999 and 2000, Acorn officials said, but a small group of executives decided to keep the information from almost all of the group’s board members and not to alert law enforcement.”

Dale Rathke remained on Acorn’s payroll until a month ago, when disclosure of his theft by foundations and other donors forced the organization to dismiss him.

‘We thought it best at the time to protect the organization, as well as to get the funds back into the organization, to deal with it in-house,’ said Maude Hurd, president of Acorn. “It was a judgment call at the time, and looking back, people can agree or disagree with it, but we did what we thought was right.’

ACORN seems to have a knack for rewriting history. According to internal emails from ACORN’s own lawyer Steve Bachman, in June of 2008, ACORN began working on a cover up for the cover up. Bachman was present at the time of the embezzlement and elaborates on his role for the benefit of the other lawyers:

“Warning signs concerning these matters were brought to Wade’s attention in July 2000. I as general counsel brought them to his attention in October 2000. ACORN upper management addressed the issue with Wade in December 2000. It is a matter of record that immediately before that meeting Wade informed me that my services were no longer required on this matter because I was being replaced by Louis Robein to solve the problem. There is documentary evidence to suggest that Wade told the same thing to is upper level management. It is not clear what Wade told member or Board members of various members of the ACORN family.”

Bachman lays out how the seeds of the first cover up were planted and them delves into the crux of the matter. Contrary to the feel good statements released to members, funders and the press by Maude Hurd, as president and Bertha Lewis in her capacity as interim chief organizer; Bachman paints a dark picture of the internal problems within ACORN.

“In short, the evidence suggests that Wade Rathke is a liar, a manipulator, and anti-democratic” (emphasis mine)

“Whether the evidence will also establish that Rathke has engaged in criminal activity remains to be seen. One question I have is the degree to which people working with him on the Dale ’solution’ are subject to RICO prosecution. My recollection is that Gail Harmon told me that the Dale ’solution’ appeared all but criminal on its face, but she will need to confirm my recollection and/or her rhetoric. At the very least the Dale note could be construed as a ’sweetheart deal.’

Bachman’s email then goes on to bring the legal team and the select board members who received this up to speed on the progress of the new cover up. Bachman first mentions that resolution passed by the ACORN board on June 20, 2008 that reads:

“Wade Rathke shall immediately and permanently be terminated from all employment with ACORN and its affiliated organizations or corporations. Furthermore, Mr. Rathke shall be removed from all boards and any leadership rolls with ACORN or its affiliated organizations or corporations.”

When Bertha Lewis made her statement on ‘The O’Reilly Factor’, she was overlooking several key facts that the media outlets have also overlooked; Wade Rathke never left ACORN. Rathke structured ACORN in a way so that the particulars his community organizing Ponzi scheme were only known to close family and allies. For example, ACLOC (ACORN Community Labor Organizing Center) according to Bachman:

“Uses the ACORN name and seems to enjoy some $2M of business annually from ACORN and SEIU. The board of ACLOC is basically controlled by WR allies.”

Read the rest of the email here.

Rathke still has control of several ACORN affiliates including SEIU local 100, Social Policy magazine and it should be reported, Rathke is the chief organizer of ACORN International. The New York Times reported on some of their backroom deals with Rathke to “encourage” him to go away quietly:

“While Mr. Rathke stepped down as the head of the organization this summer, some affiliated with Acorn have said his role as head of Acorn International has allowed him to continue to influence the group, the Times reports. One such deal under consideration that board members shared with the Times would have Mr. Rathke take over the Wal-Mart Alliance for Reform Now, an Acorn affiliate, and a Texas radio station affiliated with Acorn.

But Bertha Lewis, Acorn’s interim chief organizer, said no deal had been reached”

In case you missed the follow up story in the New York Times (should hit any day now) almost a year later Rathke’s site gives the appearance of continued involvement with ACORN affiliated radio stations, ACORN International, Walmart Alliance for Reform Now and SEIU local 100. The first “sweetheart deal’ was bad, but the second cover up is excusable. Bertha Lewis, CEO and chief organizer of the newest partner with the Census Bureau has no qualms about lying to reporters, staff, members or the American people. Apparently when Lewis said that no criminal activity would be tolerated on her watch she meant that they were only going to hold the low income and minority staff accountable for their actions (even if they were condoned or encouraged by senior staff).

At the ACORN meeting in Chicago on July 29, 2008 at which four national board members were present (Maud Hurd, Carol Hemingway and the leaders of the ACORN 8 who recently appeared on “Beck,” Marcel Reid and Karen Inman), meeting notes reveal that (1) there were discussions as to why Sidley Austin {President Obama’s old law firm) was chosen to work for ACORN, (2) Wade Rathke’s liabilities and other liability matters “are…not to be discussed with other board members, management staff UNLESS they have officially signed the joint defense agreement, (3) the 14-page Elizabeth Kingsley report (co-authored by Bachmann and dated July 17, 2008) on ACORN’s legal vulnerabilities was distributed, and (4) it was decided NOT to “go after Wade” until AFTER the last presidential election: “IF the idea for ACORN to go after Wade is decided upon–the recommendation is to wait until after December–elections, ACORN needs to get their corporation in order, clean house in terms of getting paperwork in order, etc.”

To date the ACORN 8 have not posted either the Kingsley report or that “joint defense agreement” on their website, www.acorn-8.net. Why not? Truth and transparency!

PDF document posted courtesy of the Harrington Report

Anita MonCrief is a blogger and writer in Washington, DC. She has worked with the American Bar Association Central European and Eurasian Law Initiative; the International Crisis Group; Grameen Foundation and ACORN. Anita has partnered with the Organization for Security and Cooperation in Europe on their mission to Macedonia as an election observer. In 2005, she joined the Strategic Writing and Research Department of ACORN Political Operations and its affiliate Project Vote. In 2008 Anita came forward to expose the damage that ACORN has done to the impoverished and marginalized communities, as well as its rampant voter fraud. Anita is also a social artist and her works promote social change and poverty eradication. She also blogs at www.anitamoncrief.blogspot.com