ACORN on verge of bankruptcy: report

NEW YORK Fri Mar 19, 2010 11:28pm EDT

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NEW YORK (Reuters) - The U.S. liberal grass-roots group ACORN is on the brink of bankruptcy and its leaders will hold a teleconference this weekend to discuss the group's future, The New York Times reported on its website on Friday.

Citing two leaders of the group, the Times reported ACORN is suffering from "mismanagement along with a severe loss of government and membership funds."

The organization has been reeling since a secretly recorded YouTube.com video was disseminated last September showing ACORN workers giving advice on how to flout the law to two conservative activists who posed as a pimp and a prostitute.

Employees involved in the incidents in New York were fired from the organization but have been cleared of criminal prosecution.

Since September, at least half of ACORN's 30 chapters have disbanded, the Times said. The group's large New York and California chapters have set up fresh organizations.

Congress voted by wide margins to prohibit the federal government from funding ACORN and the Census Bureau ended its partnership with the group.

Republicans have long accused the group of fraud in registering voters and improperly mixing political and nonpolitical activities. ACORN, which stands for Association of Community Organizations for Reform Now, has denied the allegations.

ACORN plays a significant political role in low-income neighborhoods and in 2008 signed up 1.3 million people to vote in areas where Democrats poll well.

The group also promotes affordable housing and fights home foreclosures as well as giving tax advice.

(Editing by Bill Trott)

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Comments (12)
KBS1 wrote:
They obviously gave advice in other matters — legal or not.

When do we get to see the crooks cooked books?

Mar 19, 2010 11:48pm EDT  --  Report as abuse
mako238 wrote:
let’s lose acorn, obama, pelosi and reed. this socialist agenda will kill our country, obamacare will bankrupt our country for future generations. VOTE OUT ALL INCUMBENTS IN NOVEMBER AND 2012. BEND OVER, HERE COMES YOUR CHANGE!!!

Mar 19, 2010 11:52pm EDT  --  Report as abuse
west129 wrote:
It is not too early for these racketeering groups to go under. This is the organization that Obama served as legal counsel to bring the banking and housing market to its knees. The same criminals are now scrambling to abandon a sinking ship. That is not too encouraging. They need to drown rather then be allowed to swim towards new grounds to set out anew under a new name. I have my rat poison ready to keep them from infesting my area!

Mar 19, 2010 12:02am EDT  --  Report as abuse
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