You'd think ACORN was a labor union, considering the trouble it's
in for dipping into its workers' retirement funds.
ACORN appears to have been involved in improper use of
pension funds and this lawbreaking may yet land some of its
officials in serious legal difficulties.
That's according to F. Vincent Vernuccio, formerly a
special assistant at the U.S. Department of Labor (and an
American Spectatorcontributor) and editor
of EFCAUpdate.org.
Vernuccio reviewed what I've called
the Kingsley memo, an internal ACORN legal memo from June 19,
2008, in which ACORN lawyer Elizabeth Kingsley gives her client a
stern warning to shape up or face grave legal consequences. "If
you do not make some hard choices now andensure they are carried out, they almost certainly will be
made for you," she wrote. [Italics in original.]
ACORN didn't listen. It let the problems fester. In the
following months when honest national board members such as
Marcel Reid and Karen Inman tried to do something about ACORN's
corruption and demanded to see critical paperwork, current chief
organizer Bertha Lewis showed them the door and denounced them as
traitors to the ACORN cause.
Except for one page, the memo in question bears lawyerly
caveats at the top: "Sensitive Report -- Do Not Distribute Beyond
Initial Recipient List."
The memo discussed ACORN's long-running cover-up of the
circa 2000 $948,000 embezzlement perpetrated by ACORN employee
Dale Rathke, brother of ACORN founder Wade Rathke. It appears
pension funds may have been dipped into or moved around as a
result of the embezzlement. This is a huge no-no. Pension funds
are governed by strict rules. You don't normally borrow from
them, move them around, or tinker with them in any way. Without
such strong legal protections, workers' life savings might be at
risk.
Vernuccio explained to me that the memo refers to several
organizations and plans. They are: ACORN, the ACORN Fund,
Citizens Consulting Inc. (CCI), Council Benefit Association
(CBA), Council Health Plan (CHP), and the ACORN Beneficial
Association (ABA).
CBA appears to be a pension plan and CHP appears to be a
health plan, according to Vernuccio. Both are covered by ERISA,
which stands for the Employee Retirement Income Security Act of
1974. ERISA is a federal
law that sets minimum standards for retirement and health
benefit plans in the private sector. ERISA does not require any
employer to establish a plan. It only requires that those who
establish plans meet certain minimum standards.
The memo questions whether the ACORN Fund is covered by
ERISA and claims the ABA is not, Vernuccio said. It calls ABA a
discretionary plan that was not intended "to be a true pension
plan covered by the ERISA law."
Then the financial shell game begins.
According to the memo, some of the embezzled funds were
taken from ABA using ACORN's American Express card. This
displacement of funding led to the creation of a complex
repayment system in which Dale Rathke owed ACORN, and ACORN in
turn, owed ABA, which, for its part, wrote off part of the
money.
Dale Rathke also owed CCI, an ACORN affiliate that has been
called the financial nerve center of the ACORN network, and CCI
owed ACORN which in turn owed the ACORN Fund. Then ACORN was
somehow taken out of the picture and CCI owed the money directly
to ACORN Fund.
The memo says it appeared that the money was not paid back
to the ACORN Fund to cover the loss of the embezzlement to the
employee healthcare fund. ACORN Fund may have advanced a large
amount of money to ACORN. The memo also states if ACORN Fund is
covered by ERISA then this may be considered a prohibited loan to
a related party.
In other words, somewhere in there unethical and possibly
illegal nepotism and self-dealing took place.
Vernuccio cautiously states that not everything is
clear-cut so "further investigation of these issues is necessary
to come to concrete conclusions." He adds that the forgiveness of
debt between ACORN and entities which provide healthcare and
pensions for employees identified in the memo is
"troubling."
…were taken from ABA using ACORN’s American Express card. This displacement of funding led to the creation of a complex repayment system in which … See original here: The American Spectator : ACORN's Pension Shell Games Share and Enjoy: October 7th, 2009 | Tags: acorn, american, editor, facebook, games, Health, memo, new-articles, News, price-fixing, stumbleupon, the-rush-rams, the-undecider |…
Marc Jeric| 10.7.09 @ 6:34AM
Bertha Lewis. the current boss of ACORN, is a typical candidate
for the future American Gulag boss - when her current local
soviets (community organizations) are ready for the coming
revolution, helped along by the SEIU union thugs. They only lack
appropriate armaments.
…from ABA using ACORN’s American Express card. This displacement of funding led to the creation of a complex repayment system in which … Go here to see the original: The American Spectator : ACORN's Pension Shell Games Translate this post …
…Philip Klein amspec American Spectator 112 Show more Shortened Links Linking to the spectator.org page http://bit.ly/1DhYHO info http://bit.ly/4dIEnM info 2 tweets Tweet The American Spectator : ACORN's Pension Shell Games spectator.org/archives/2009/10/07/acorns-pension-shell-games – view page – cached ACORN appears to have been involved in improper use of pension funds and this…
ACORN appears to have been involved in improper use of pension
funds and this lawbreaking may yet land some of its officials in
serious legal difficulties.
Tom| 10.7.09 @ 11:58AM
ACORN needs a little RICO
trapper| 10.7.09 @ 11:59AM
Why are they receiving my taxpayer money. Perhaps the most vile
action a government can make is to take money from a person and
then use that money against him politically. And that is what is
being done when Acorn is given taxpayer money.
…October 7th, 2009 | Tags: acorn, american, editor, facebook, games , Health, memo, new-articles, News, price-fixing, stumbleupon, the-rush-rams, … Read the original here: The American Spectator : ACORN's Pension Shell Games Related posts: Piston Slap: Shell Games | The Truth About Cars TTAC Commentator Golden2husky writes: I have a Piston Slap question... America's Nuclear Games | The Pakistani…
…more than 400,000, but you can’t just round up from an indefinite figure like “over 400,000.” Those are just a few of Lewis’ lies from yesterday. Nor did Lewis say much about her own role in covering up the embezzlement perpetrated by founder Wade Rathke ’s brother. After news of the theft broke, Lewis drove out honest ACORN national board members who dared to ask questions.…
…and Enjoy: October 7th, 2009 | Tags: acorn, american, editor, facebook, games , Health, memo, new-articles, News, price-fixing, stumbleupon, the-rush-rams, … View post:Â The American Spectator : ACORN's Pension Shell Games Other Related Posts: No Comments Posting your comment. Leave a reply name (required) email ( will not be shown ) (required) website Make Money Blogging Discover the Magic Formula…
Richard Baker| 10.7.09 @ 7:23PM
ACORN is using a Ouija board to speak with Jimmy Hoffa on pension
funding and investments.
…means. Yes, 500,000 is more than 400,000, but you can’t just round up from an indefinite figure like “over 400,000.” Those are just a few of Lewis’ lies from yesterday. Nor did Lewis say much about her own role in covering up the embezzlement perpetrated by founder Wade Rathke ’s brother. After news of the theft broke, Lewis drove out honest ACORN national board members who dared to ask questions. Lewis, who…
…are in no way limited to: *a nearly $1 million embezzlement by the founder’s brother that was covered up for eight years while the brother (Dale Rathke) remained on the ACORN payroll *misuse of pension funds *commingling of public funds *illegal loan from ERISA-covered pension fund *failure to pay excise tax on illegal loan *use of public funds on partisan activities *money laundering ACORN doesn’t…
…but are in no way limited to: *a nearly $1 million embezzlement by the founder’s brother that was covered up for eight years while the brother (Dale Rathke) remained on the ACORN payroll *misuse of pension funds *commingling of public funds *illegal loan from ERISA-covered pension fund *failure to pay excise tax on illegal loan *use of public funds on partisan activities *money laundering ACORN doesn’t care…
…no way limited to: *a nearly $1 million embezzlement by the brother of founder Wade Rathke that was covered up for eight years while the brother (Dale Rathke) remained on the ACORN payroll *misuse of pension funds *commingling of public funds *illegal loan from ERISA-covered pension fund *failure to pay excise tax on illegal loan *use of public funds on partisan activities *money laundering ACORN doesn’t care…
…but are in no way limited to: *a nearly $1 million embezzlement by the founder’s brother that was covered up for eight years while the brother (Dale Rathke) remained on the ACORN payroll *misuse of pension funds *commingling of public funds *illegal loan from ERISA-covered pension fund *failure to pay excise tax on illegal loan *use of public funds on partisan activities *money laundering ACORN doesn’t care…
…but are in no way limited to: *a nearly $1 million embezzlement by the founder’s brother that was covered up for eight years while the brother (Dale Rathke) remained on the ACORN payroll *misuse of pension funds *commingling of public funds *illegal loan from ERISA-covered pension fund *failure to pay excise tax on illegal loan *use of public funds on partisan activities *money laundering ACORN doesn’t care…
Juicy couture handbags are among the brands which have gained a
great repute over a longer period of time.The quality and
material used for their manufacturing is up to the mark and has
no match. The most attractive thing of JC purses are their
reasonable prices, which makes www.juicyihandbag.com them liked
by people belonging to all classes. These are easy to be
purchased from online retail stores. You have the advantage to
check the available variety on internet and then buy the item of
your choice through the credit card. It would be good to make a
phone call at the company number before making the transaction,
in order to confirm the authentication of selected retailer.
Being a proud owner of a watch is a wondrous thing that many take
for granted. No one remembers back when things were simple and
they had to call "time and rtain devices run on their own with no
batteries what so ever and some get updates from satellites so
that the time is always perfect.Looking back on all of the famous
inventors or the wrist watch, it makes you happy to know that the
item located on your wrist is truly a miracle and wonder of the
world. From the first watch with its round face to the tiny ring
watches that sit delicately on your finger, they are truly a
piece of history.Dating back to the 1800s up until now, watches
have constantly have been moving forward and keeping us in time
with the rest of the world. If you are looking to find out more
about the history of the watch www.in-watch.com then you will want to look to the founder's of
this wondrous invention. It is amazing to see how the watch has
evolved and the parts get smaller with each new watch on the
market. There is a watch for every lifestyle and wardrobe so you
can be stylish or simple anytime of the day or night.
You won't have to worry about having your sunglass merchandise to
gather dust on its display racks waiting for the summer season to
commence www.sunglass-mall.com
balcuizar62| 10.13.11 @ 4:28AM
I really do appreciate that you’ve added useful, relevant and
rational commentary here though. Greatly because of you ,! yaz class action
shia| 10.18.11 @ 10:08AM
this is very attractive thats all i like the topic which is you
post it..thank you
Im really impressed that theres so much about this subject thats
been uncovered and you did it so well, with so much class. Good one
you, man! Really great stuff here..
this topic just happens to be something that I've been trying to
find more info on for research purpose. Actos
Lawyers
bogol| 11.30.11 @ 1:53PM
We are a group of volunteers and opening a new scheme in our
community. Your website offered us with valuable info to work on.
You have done an impressive job and our entire community will be
thankful to you.
Thanks a bunch for sharing this with all of us you really know
what you are talking about! Bookmarked. Please also visit my
website =). We could have a link exchange agreement between us!
Thanks for the nice blog. It was very useful for me. Keep
sharing such ideas in the future as well. This was actually what I
was looking for, and I am glad to came here! Thanks for sharing the
such information with us. san diego bankruptcy attorney
IMYI| 12.15.11 @ 10:18PM
Aw, this was a very nice post. In thought I wish to put in
writing like this moreover – taking time and precise effort to make
a very good article… however what can I say… I procrastinate alot
and on no account appear to get one thing done.
Pingback| 10.7.09 @ 6:20AM
The American Spectator : ACORN's Pension Shell Games links to this page. Here’s an excerpt:
Marc Jeric| 10.7.09 @ 6:34AM
Bertha Lewis. the current boss of ACORN, is a typical candidate for the future American Gulag boss - when her current local soviets (community organizations) are ready for the coming revolution, helped along by the SEIU union thugs. They only lack appropriate armaments.
Pingback| 10.7.09 @ 6:40AM
The American Spectator : ACORN's Pension Shell Games | Masti Network - A News and Inf links to this page. Here’s an excerpt:
Pingback| 10.7.09 @ 10:23AM
Twitter Trackbacks for The American Spectator : ACORN's Pension Shell Games [spectat links to this page. Here’s an excerpt:
Trackback| 10.7.09 @ 10:33AM
ACORN's Pension Shell Games, on www.govcorruptionwatch.com, links to this page. Here’s an excerpt:
Tom| 10.7.09 @ 11:58AM
ACORN needs a little RICO
trapper| 10.7.09 @ 11:59AM
Why are they receiving my taxpayer money. Perhaps the most vile action a government can make is to take money from a person and then use that money against him politically. And that is what is being done when Acorn is given taxpayer money.
Pingback| 10.7.09 @ 12:14PM
The American Spectator : ACORN's Pension Shell Games | Rent Video Games Cheap links to this page. Here’s an excerpt:
Pingback| 10.7.09 @ 1:22PM
ACORN’s Liar-in-Chief Blames Everyone Except Herself « NewsReal Blog links to this page. Here’s an excerpt:
Pingback| 10.7.09 @ 3:10PM
The American Spectator : ACORN's Pension Shell Games links to this page. Here’s an excerpt:
Richard Baker| 10.7.09 @ 7:23PM
ACORN is using a Ouija board to speak with Jimmy Hoffa on pension funding and investments.
Pingback| 10.7.09 @ 8:27PM
ACORN’s Liar-in-Chief Blames Everyone Except Herself | Prayer And Action links to this page. Here’s an excerpt:
Pingback| 2.22.10 @ 2:52PM
» ACORN Crime Family Renames New York Chapter - Big Government links to this page. Here’s an excerpt:
Pingback| 2.22.10 @ 4:43PM
ACORN’s Latest Trick: Shutdown and Rename « Mayrant&rave links to this page. Here’s an excerpt:
Pingback| 2.22.10 @ 6:09PM
ACORN’s Relentless Push To Deceive Taxpayers Continues | NewsReal Blog links to this page. Here’s an excerpt:
Pingback| 2.22.10 @ 7:14PM
Capital Research Center: links to this page. Here’s an excerpt:
Pingback| 2.22.10 @ 7:23PM
Exclusive: Statement From Rep. King on ACORN Collapse: Also ACORN changing names « Da links to this page. Here’s an excerpt:
www.us-bapeoutlet.com| 4.2.10 @ 10:24PM
www.us-bapeoutlet.com
www.juicyihandbag.com| 4.3.10 @ 8:00AM
Juicy couture handbags are among the brands which have gained a great repute over a longer period of time.The quality and material used for their manufacturing is up to the mark and has no match. The most attractive thing of JC purses are their reasonable prices, which makes www.juicyihandbag.com them liked by people belonging to all classes. These are easy to be purchased from online retail stores. You have the advantage to check the available variety on internet and then buy the item of your choice through the credit card. It would be good to make a phone call at the company number before making the transaction, in order to confirm the authentication of selected retailer.
www.in-watch.com| 4.3.10 @ 8:06AM
Being a proud owner of a watch is a wondrous thing that many take for granted. No one remembers back when things were simple and they had to call "time and rtain devices run on their own with no batteries what so ever and some get updates from satellites so that the time is always perfect.Looking back on all of the famous inventors or the wrist watch, it makes you happy to know that the item located on your wrist is truly a miracle and wonder of the world. From the first watch with its round face to the tiny ring watches that sit delicately on your finger, they are truly a piece of history.Dating back to the 1800s up until now, watches have constantly have been moving forward and keeping us in time with the rest of the world. If you are looking to find out more about the history of the watch
www.in-watch.com then you will want to look to the founder's of this wondrous invention. It is amazing to see how the watch has evolved and the parts get smaller with each new watch on the market. There is a watch for every lifestyle and wardrobe so you can be stylish or simple anytime of the day or night.
ghdmanufactoryoutlet| 4.4.10 @ 4:36AM
fdf
sunglass| 4.4.10 @ 4:44AM
sdf
paulsmithoutlet| 4.4.10 @ 5:06AM
dhg
burberryoutlet| 4.4.10 @ 5:09AM
ghgh
www.sunglass-mall.com| 4.6.10 @ 2:46AM
You won't have to worry about having your sunglass merchandise to gather dust on its display racks waiting for the summer season to commence www.sunglass-mall.com
balcuizar62| 10.13.11 @ 4:28AM
I really do appreciate that you’ve added useful, relevant and rational commentary here though. Greatly because of you ,!
yaz class action
shia| 10.18.11 @ 10:08AM
this is very attractive thats all i like the topic which is you post it..thank you
mesothelioma lawyer
creamer| 10.20.11 @ 3:10AM
I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts
Actos Attorneys
abominable putridity| 11.5.11 @ 4:46PM
The government this month have announced that they are making more low value contract opportunities for free
L Tod Schlosser
wow| 11.13.11 @ 10:05PM
Im really impressed that theres so much about this subject thats been uncovered and you did it so well, with so much class. Good one you, man! Really great stuff here..
zoloft lawsuits
bogol| 11.16.11 @ 2:06PM
this topic just happens to be something that I've been trying to find more info on for research purpose.
Actos Lawyers
bogol| 11.30.11 @ 1:53PM
We are a group of volunteers and opening a new scheme in our community. Your website offered us with valuable info to work on. You have done an impressive job and our entire community will be thankful to you.
Effexor Lawyer
bogol| 12.1.11 @ 10:47AM
Thanks a bunch for sharing this with all of us you really know what you are talking about! Bookmarked. Please also visit my website =). We could have a link exchange agreement between us!
mesothelioma attorney
inah0911| 12.5.11 @ 3:02PM
I have gone through the article and found interesting information helped me in getting the best answer that I am looking for.
san diego personal injury attorney
inah0911| 12.6.11 @ 10:56AM
Thanks for the nice blog. It was very useful for me. Keep sharing such ideas in the future as well. This was actually what I was looking for, and I am glad to came here! Thanks for sharing the such information with us.
san diego bankruptcy attorney
IMYI| 12.15.11 @ 10:18PM
Aw, this was a very nice post. In thought I wish to put in writing like this moreover – taking time and precise effort to make a very good article… however what can I say… I procrastinate alot and on no account appear to get one thing done.
Medtronic Infuse Lawsuit