ACORN and Alleged Embezzlement

ACORN may have suffered from an embezzlement case.

In 2000, Acorn discovered that Dale Rathke had embezzled $948,507.50 from it and affiliated charitable organizations. The management committee that controlled the organization decided not to alert law enforcement officials, and negotiated an agreement with the Rathke family to repay the money.

That agreement was carried on the books of an affiliate, Citizens Consulting Inc., as a loan to an officer. Sometime in June, Mr. Pike bought the loan from the affiliate, according to e-mail messages between senior executives at Acorn that were provided to a reporter by Acorn employees, who requested anonymity because they feared losing their jobs.

Mr. Pike refused to confirm or deny that he had bought the note. “As a rule, I do not comment on my personal finances,” he wrote in e-mail messages in answer to questions about the deal.

But e-mail messages among Acorn’s senior executives discuss how to keep Mr. Pike’s identity secret, even as they acknowledge that some of the foundations and philanthropic advisers that have supported Acorn and its affiliates know that he bought the note.

“Does Drummond know the word is out?” Steven Kest, the executive director of Acorn, wrote on July 4. “If not, shouldn’t someone tell him?”

In a July 12 e-mail message to Mr. Kest, Acorn’s political director, Zach Pollett, wrote: “I talked to Drummond on this yesterday and had Beth Kingsley” — Acorn’s lawyer — “prepare a ‘keep your yaps shut’ confidentiality memo to people at Acorn and CCI.”

No Forks, No Chairs

The Times has another entry in a long list of articles discussing ethics rules and convention events.

For instance, members of Congress cannot be singled out to be honored at events, but if they are members of a state delegation, the whole group can be honored. And the rules can vary for House and Senate members; senators can be “featured speakers” at events, while House members cannot. Meals, tickets to events and entertainment cannot be paid for by lobbyists, though those gifts can be accepted if provided by the Cities of St. Paul or Denver or if part of a fund-raising event is sponsored by the parties themselves.

Why Lobbyists Give

The Nonprofit & Foundation Advocacy Blog as an interesting post on why lobbyists give.

How sad that nefarious purposes are attributed into every campaign contribution given by a registered lobbyist. Lobbyists still live and work in society; they pay federal taxes and enjoy the services provided to all (such as interstate highways, federal parks, clean air). Why is it so shocking that they may have a personal interest in who becomes their Senator or President?

This refreshing post certainly lacks the usual cliches on the topic.