permalink  Rathke Embezzled $5 Million From ACORN

The Louisiana Attorney General is now saying that $5 Million was embezzled from ACORN while brothers Wade and Dale Rathke kept the organization’s books.  Earlier investigations had revealed that Dale Rathke made nearly $1 million in improper credit card charges in 1999 and 2000 (which were repaid by Rathke and a charitable donor to avoid legal trouble).  Now it appears that the sum was much greater.

Louisiana’s attorney general has broadened the scope of an investigation of ACORN to include a possible embezzlement of $5 million a decade ago within the community organization, five times more than previously reported….

Attorney General Buddy Caldwell has been conducting an investigation of ACORN since June. He issued subpoenas in August seeking documents related to former ACORN International President Wade Rathke and his brother Dale Rathke, who kept the group’s books. Those subpoenas were focused on possible ACORN violations for non-payment of employee withholding taxes, obstructing justice and violating the Employee Retirement Security Act….

The attorney general had inquired in June into an alleged embezzlement within ACORN that happened 10 years ago. The group last year dealt with an internal dispute and a lawsuit involving accusations that Dale Rathke made nearly $1 million in improper credit card charges in 1999 and 2000. The brother and a donor repaid the money….

“Current high-ranking members of ACORN have publicly acknowledged that embezzlement did in fact occur, but the exact amount of the embezzlement was unknown until it was recently acknowledged in a board of directors meeting on Oct. 17, 2008, by Bertha Lewis and Liz Wolf that an internal review had determined that the amount embezzled was $5 million,” the new subpoena says….

Can we just get this entire organization outlawed already? This isn’t just a few bad apples. The whole bunch is rotten. [From Stop the ACLU Blog.]

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This article is cross-posted from Stop The ACLU as part of a weblog coalition effort.

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One Response to “Rathke Embezzled $5 Million From ACORN”
  1. Col. Bunny says:

    Hmmm. The (some of) money was “repaid by Rathke and a charitable donor.” I wonder what is the reason that there’s such solicitude for this donor that his or her name cannot be mentioned.

    I don’t mean your solicitude, btw.

    There must be quite an exposed nerve there for there to be this delicate circumlocution.