Whistleblowers Seek to Reform ACORN

Reid and Inman arranged for experts to address the matter, personally and in writing.  The two claim to "ultimately hope our fellow board members understand that ACORN remains susceptible to inappropriate manipulation by Wade".  Both add, "we were authorized and need to pursue a forensic investigation, independent audit, and expedited discovery to identify and protect ACORN assets and interests."  Inman and Reid consider it "negligent for any lawyer to advise differently, particularly as Wade travels outside the U.S., possibly putting ACORN assets beyond the reach of American courts, supposedly on behalf of ACORN International."

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However, in a 38 to 12 vote, the ACORN Board of Directors voted to withdraw the Preliminary Injunction filed to access records and safeguard assets filed following the embezzlement. Judge Bagneris instructed ACORN directors to select authorized representatives at its Annual National Board of Director's meeting in New Orleans. However, Judge Bagneris also declared that even if the ACORN board voted to withdraw the preliminary injunction filed by the IMC; that individual voting members of ACORN have an absolute right under Louisiana law to review ACORN's corporate books and records. Judge Bagneris continued the proceedings until November 7, 2008 at 10:00 am.

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When asked to summarize the strategy their opponents support, Inman and Reid explain it "is substantially managed by people who helped Wade conceal his brother's embezzlement; involves private negotiations with Wade with no legal constraints on his part; hijacks the prerogative entrusted to us by board vote; and as is being implemented through unauthorized contracting."  Both Inman and Reid complain that "such deference to Wade and disregard of ACORN board members nearly transformed ACORN into a Rathke family alter-ego over the years." ACORN has a 53 member board consisting of low income neighborhood representatives. The sheer size and composition of this board makes it susceptible to manipulation by ACORN staff and, outside lawyers and consultants.

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Media reports by the New York Times, The Times Picayune, and others suggest ACORN Eight detractors are ACORN's board president, Maude Hurd, and its interim chief organizer, Bertha Lewis.  Inman and Reid add Steve Kest to the list, ACORN's executive director.  They also include attorney Beth Kingsley of the D.C. law firm, Harmon Curran Spielberg & Eisenberg LLP. Kingsley is reportedly identified as ACORN's "outside counsel."

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What is ACORN?

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Since 1970 ACORN has taken direct action and won victories on issues of concern to our members, including better housing for first time homebuyers and tenants, living wages for low-wage workers, more investment in our communities from banks and governments, and better public schools. The hypocrisy of ACORN lies in the fact that the organization made famous by fighting for the voices of low income people to be heard in America, actively squashes these same voices of dissent within the organization.

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Referencing ACORN, Marcel Reid explains that "ours is the voice for hundreds of thousands of otherwise disenfranchised people." Noting that voice must now rise above questionable voter registrations and America's financial crisis, Reid cautions fellow board members to overcome "the ACORN culture of acquiescence to Wade Rathke and his family so that ACORN vindicates the poor and moderate income people it represents."  Reid and Inman emphatically assert with support of the full ACORN Eight, that they were "authorized and need to pursue a forensic accounting, independent audit, and expedited discovery to identify and protect ACORN assets and interests."

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Ironically, the ACORN board voted to withdraw the lawsuit – but instead to continue an internal investigation into the embezzlement. This is essentially the same strategy the executive committee and senior staff members attempted when they learned about, and then concealed, the embezzlement from the full board. Thus, today's vote indicates that the full board may have acquiesced to the original cover up – even if they had known about the fraud at the time. However, authorizing the IMC was the Association Board's first attempt to exercise autonomy and control over ACORN by its membership.

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