The Evidence Against ACORN Mounts: Newly Obtained Whistleblower Affidavits Further...

The Evidence Against ACORN Mounts: Newly Obtained Whistleblower Affidavits
Further Document Abuse of Taxpayer Funds

WASHINGTON, July 31 /PRNewswire/ -- The Consumers Rights League (CRL)
today released newly obtained affidavits from former ACORN and Acorn Housing
Corporation (AHC) employees that attest to ACORN and AHC's illegal practice of
using taxpayer dollars to fund political activity.
The affidavits from two former AHC employees, obtained by CRL following
the publication of its original report in June, "ACORN's Hypocritical House of
Cards," make further specific and damning allegations, including:
-- AHC and ACORN were at one time being funded from a joint account, which
would appear to violate the same laws highlighted by the AmeriCorps Inspector
General in 1994.
-- According to a former ACORN board member and AHC employee, AHC -- which
received taxpayer money -- directly used funds to support ACORN activities,
including paying for rent at an office where AHC was not even a tenant.
-- Perhaps most troubling, the sworn statement of former AHC staffer
Andrew Johnson suggests AHC leadership pressured employees to intentionally
hide information from HUD investigators.
Statement from James Terry, Chief Public Advocate, Consumers Rights
League:
"These AHC affidavits are further evidence in a growing litany of
potentially illegal abuses of taxpayer dollars by ACORN and AHC. Members of
Congress, who recently doled out millions of dollars to these groups in the
housing bailout bill, need to ask some serious questions to ensure that those
taxpayer dollars are being spent properly and not illegally supporting
political activity, or being squandered by an organization with an already
checkered past of voter fraud and embezzlement. In addition to the affidavits,
these former employees have offered to assist any investigation with
additional information. It is time for Congress, HUD and others to exercise
proper oversight and investigate these entities before millions more in public
funds are wasted."
Background:
In June, the Consumers Rights League released a report exposing the role
of ACORN in the nation's housing crisis. The report, "ACORN's Hypocritical
House of Cards," included whistleblower documents provided by former ACORN and
ACORN Housing Corporation (AHC) employees. The report outlined AHC's repeated
pattern of shaking down corporate targets, driving low-income consumers to
questionable loan products, and potentially misusing taxpayer funds by
maintaining what appears to be an illegally close relationship with ACORN,
which engages in overtly political activity.
AHC is a federally recognized tax-exempt organization. As such it is not
allowed to share funds or provide funding for ACORN. Over a three-year period
surveyed for the AHC report that organization took in 40% -- or more than $7
million -- in taxpayer funds. Over the same period, AHC gave grants and paid
fees totaling more than $4.6 million to ACORN-related organizations (including
Citizens Consulting, from which the brother of ACORN founder Wade Rathke
embezzled nearly $1 million).
The June Consumers Rights League report highlighted the 1994 scandal in
which AHC was caught by government investigators for falsely claiming to be a
separate entity from ACORN so that it could use taxpayer money for combined
operations. The AmeriCorps Inspector General's report concluded:
"Not only did we find references to ACORN having 'created' AHC to serve
purposes common to both organizations, we noted numerous transactions and
activities involving 'fraternal' ACORN-related corporations."

In that case, it was found that ACORN had abused the $1 million grant from
taxpayers. The practice seems to have continued as AHC has taken in millions
more from public coffers. An alarming internal AHC memo from September 2004
specifically stated: "Total funding from HUD's fair housing initiatives this
year is about $650,000 which will provide a good opportunity for ACORN and AHC
to work together on housing issues and campaigns."
About The Consumers Rights League:
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 at www.consumersrightsleague.org.
Affidavits and full ACORN report available at the following links:
www.consumersrightsleague.org//UploadedFiles/Affidavit%20Andrew%20Johnson.pdf
www.consumersrightsleague.org//UploadedFiles/Glenda%20Kizee%20Affidavit.pdf
SOURCE The Consumers Rights League

James Terry of The Consumers Rights League, +1-202-230-4573