Related ACORN stories: here
More union embezzlement stories: here


James Terry, the Chief Public Advocate for the Consumers Rights League, issued the following statement in response to The New York Times article ("Funds Misappropriated at Nonprofit Group") detailing how members of ACORN's leadership team covered up an internal embezzlement scandal for nearly eight years.
Also today, the Consumers Rights League released a Backgrounder Document which provides a synopsis of ACORN's continuing history of abuse, explains how the organization would reap millions from the housing bill moving through Congress and lays out some suggested taxpayer protections that must be added to that legislation.
"The revelations in the New York Times article of June 9, 2008, 'Funds Misappropriated at Nonprofit Group,' are just further proof of a broken system. As highlighted in the Consumers Rights League's recent whistleblower report, the current system lacks appropriate oversight and enabled this web of organizations to use taxpayer funds for political activities with little accountability. Now, we learn that ACORN has been able to cover up the embezzlement of almost a million dollars for nearly eight years.
"On June 20, 2008 - days after the Consumers Rights League released its expose on the activities of ACORN and it subsidiary, the ACORN Housing Corporation (AHC) -- Congressmen Tom Feeney (FL), Ed Royce (CA) and Jeb Hensarling (TX) sent Chairman Barney Frank (MA) a letter requesting that the Financial Services Committee hold hearings to investigate these potential abuses. To date, Chairman Frank has yet to respond to the request for hearings or even acknowledged that a problem exists.
"In addition to the potentially illegal practices detailed in the Consumers Rights League's whistleblower report and the embezzlement cover-up revealed by the New York Times, ACORN is under felony investigation in several jurisdictions for rampant voter registration fraud.
"Despite the evidence that continues to pile up suggesting that ACORN and its affiliates have apparently engaged in illegal behavior on several levels, Congress has so far refused to act. Worse yet, they are poised to pass legislation (HR 3221) that would make hundreds of millions of dollars more available to these organizations.
"Even proponents of this legislation should recognize that there is a problem with the system. It would be outright irresponsible for Congress to pass this legislation without investigating these allegations and installing measures such as increased transparency requirements and stiffer penalties for misusing funds.
"The dollars given to these organizations are supposed to benefit consumers but instead, have been used to advance political agendas. It is time that Congress acts in the interest of American consumers."
The Consumers Rights League is a non-profit, non-partisan educational organization dedicated to protecting consumer choice and access to the marketplace. Through investigative analysis, CRL produces quality research that thoroughly documents the real-world choices and challenges consumers face and reports on the benefits enjoyed by an overwhelming majority of consumers.
Learn more about CRL's mission and read a full copy of the backgrounder and whistleblower report at www.consumersrightsleague.org. Please direct all media requests to Kate Kennedy at 202.333.4444 or via email at kkennedy@adfero.com.
(earthtimes.org)