Research

6

Nov

Another Fire ACORN Can’t Extinguish

Posted by: Jeffrey Berkowitz

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Today, state investigators searched the New Orleans offices of ACORN in conjunction with allegations of embezzlement and tax fraud. Louisiana Assistant Attorney General David Caldwell said the allegations of embezzlement originated from ACORN board members who had asked for an examination of the group’s accounting records last year. The board members were fired after making the request.

This is the same chapter that caused a stir last month when it received a $1 million grant from the Department of Homeland Security for fire prevention. This grant represents nearly 80 percent of the fire fighting grants the state is set to receive.

ACORN of course is no stranger to controversy.  In September, ACORN employees were caught on tape giving advice on prostitution and tax evasion to two undercover individuals.  After the scandal emerged, the House and Senate voted to cut off some federal funding for the group and the IRS and U.S. Census Bureau cut off ties with ACORN. Several state attorneys general are investigating ACORN’s activities in their states and a handful of governors have ordered that state contracts not go to ACORN. 

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