Dale Rathke

Wade Rathke and the Myth of ACORN

Wade Rathke, former chief organizer of the Association for Community Organizations for Reform Now (ACORN), spoke at the University of Memphis yesterday and expressed his dismay at the current predicament ACORN finds itself in:

“Rathke stepped down from ACORN in 2008. Since his departure, ACORN's been accused of voter registration fraud, embezzlement and worker misconduct. Hidden camera video made public earlier this year shows ACORN employees telling a couple posing as a pimp and a prostitute how to get around tax laws to make money.

'It's very worrisome to me,' says Rathke, 'having spent 38 years there. The notion that within one and a half years since I left, the organization could almost evaporate is just stunning and startling to me."

According to reports, Rathke is pessimistic about the future of ACORN:

"The organization has become the focal point of the Right," Rathke said during an interview before his speech.

"I don't know if it can survive another year," he said....

'ACORN, Rathke said, serves an important function in a democratic society, in that it 'provides a vehicle for community residents, particularly lower and middle income, to have a voice in affairs.'

'You are going to have some people who cut corners, and do things that are irregular. ACORN made mistakes,' he said.

Rathke said he was glad to be in Canada when the Baltimore video surfaced. “

Unfortunately, Wade Rathke is still peddling the myth that ACORN actually works to help the poor. Grant applications to various foundations describe ACORN as:

“ACORN is one of the nation’s largest and most successful networks of community organizations, with over 230,000 low and moderate-income members organized into 1200+ neighborhood chapters in 104 cities across the country. Since 1970 ACORN has been building solidly rooted and powerful community organizations that are committed to social and economic justice, and have taken action and won victories on thousands of issues of concern to our members, through direct action, negotiation, legislative advocacy, and voter participation. Fundamentally, ACORN’s goal is to ensure that low and moderate income families have the power to act effectively on their own behalf in the struggle to build a more progressive America. ACORN helps those who have historically been locked out become powerful actors in our democratic system.”

Liberals cling to the myth of ACORN so they can claim that the “right” is trying to stop persons of color from getting ahead, or as it in known in an ACORN “rap,” “the man keeping a brotha down.”

Wade Rathke, a former member of the Students for A Democratic Society (SDS) and The National Welfare Rights Organization (NWRO) never intended for ACORN to be an organization that really helped poor people. Rathke, from all indications, wanted to use ACORN as a vehicle for political power. It is very telling that ACORN International - now Community Organizations International (COI) - was started after the embezzlement scandal. It appears as if Rathke wanted to secure his future and keep the money rolling in. Screen shots of his international work illustrate that Rathke intends to use COI to corrupt foreign electoral systems in the same way that ACORN has worked domestically. COI may have been started using tax dollars and non-profit tax exempt funds, but the organization has become a critical addition the the political landscape of quite a few countries.

Not only are Rathke's statements self serving, but he fails to admit that the initial cover-up of the embezzlement by his brother Dale Rathke may have contributed to ACORN's current troubles.

Furthermore, it appears that the Interim Staff Management committee (ISM) - which included members like Maude Hurd, Marcel Reid and Karen Innman - acknowledged  the difficulties associated with dealing with COI and Rathke, but decided to wait until ACORN could “get its paperwork in order."

ACORN may be on the ropes, but its not down for the count. Wade Rathke  is successfully meddling in international affairs and Holder's Justice Department continued reluctance to investigate ACORN may offer them a reprieve. Rathke appears ready to shake things up and start ACORN all over again, one country at a time.

Is Obama connected to the ACORN-Rathke embezzlement scandal?

Some coincidences are just too rich that you have to start drawing conclusions. Here are four facts that suggest that there might be a line between them:

  • Dale Rathke embezzled money from ACORN totalling about $950k. Apparently, commitments have been made to return about $210k, for a total of $740k still missing.
  • Barack Obama's campaign paid ACORN, via a political consulting affiliate, $830k, but ACORN says that they only received $80, leaving $750k unaccounted for.
  • Dale Rathke embezzled this money in the period of 1999-2000, when Barack Obama was running for US Congress with the backing of SEIU Local 880 and ACORN. SEIU Local 880 is basically ACORN controlled. Rathke even filed the LM-2 form with the Department of Labor in 2000, signing it as "Treasurer", which I have previously written about.
  • Obama, ACORN, SEIU 880, and Rep. Danny Davis, appeared to act together in a number of local political engagements.

Here's my question: Did SEIU Local 880 and/or ACORN use some or all of that embezzled money to fund operations for Obama's Congressional race in 1999 and 2000?

Details and sourcing after the jump.

Could the ACORN embezzlement scandal spread to SEIU?

The AP drops a story about a power and money scandal at ACORN involving the founder of ACORN, Wade Rathke and his brother Dale:

The lawsuit filed in August by two board members accuses ACORN founder and former chief organizer Wade Rathke of either concealing or failing to properly report that his brother Dale embezzled around $948,000 from New Orleans-based ACORN and affiliated charitable organizations in 1999 and 2000.

I wonder if this might expand to SEIU in general, which has been getting a lot of scrutiny due to a fight with the California Nurses Association and corruption in the LA branch, ably reported by the LA Times' Paul Pringle.

The issue is that Wade and Dale Rathke have also been leaders of significant SEIU multi-state locals.

Wade Rathke also founded SEIU Local 100 in New Orleans (more broadly Texas, Mississippi, Louisiana, and Arkansas) and is still the "Chief Organizer" of the local, which is headquartered at the ACORN office.

Meanwhile, in 2000, Dale Rathke, was the Treasurer for Local 880 in Chicago, while at the same time being CFO of the national ACORN organization. According to the Illinois State Senate in 2001, Local 880's email address was seiu880ch@acorn.org.

So in 2000 while Dale Rathke was embezzling money from ACORN he was also the Treasurer for one of the most important SEIU mega-locals and filing their compliance forms with the Department of Labor. See the filing after the jump.

Seems like it might be worth some investigation.

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