ACORN announces closure because of financial trouble, video scandal
By The Associated Press
March 22, 2010, 7:01PM
CHICAGO — The once mighty community activist group ACORN announced today it is folding amid falling revenues — six months after video footage emerged showing some of its workers giving tax tips to conservative activists, including one from New Jersey, posing as a pimp and prostitute.
"It's really declining revenue in the face of a series of attacks from partisan operatives and right-wing activist that have taken away our ability to raise the resources we need," ACORN spokesman Kevin Whelan said.
Several of its largest affiliates, including ACORN New York and ACORN California, broke away this year and changed their names in a bid to ditch the tarnished image of their parent organization and restore revenue that ran dry in the wake of the video scandal. They will continue to operate under their new names and aren't affected by ACORN's decision to shut down.
ACORN's financial situation and reputation went into free fall within days of the videos' release in September. Congress reacted by yanking ACORN's federal funding, private donors held back cash and scores of ACORN offices closed.
Earlier this month, a U.S. judge reiterated an earlier ruling that the federal law blacklisting ACORN and groups allied with it was unconstitutional because it singled them out. But that didn't mean any money would be automatically be restored.
Bertha Lewis, the CEO of ACORN, which stands for the Association of Community Organizations for Reform Now, alluded to financial hardships in a weekend statement as the group's board prepared to deliberate by phone.
"ACORN has faced a series of well-orchestrated, relentless, well-funded right wing attacks that are unprecedented since the McCarthy era," she said. "The videos were a manufactured, sensational story that led to rush to judgment and an unconstitutional act by Congress."
ACORN's board decided to close remaining state affiliates and field offices by April 1 because of falling revenues, with some national operations will continue operating for at least several weeks before shutting for good, Whelan said today.
For years, ACORN could draw on 400,000 members to lobby for liberal causes, such as raising the minimum wage or adopting universal health care. ACORN was arguably most successful at registering hundreds of thousands of low-income voters, though that mission was dogged by fraud allegations, including that some workers submitted forms signed by 'Mickey Mouse' or other cartoon characters.
Previous Coverage:
• ACORN sting 'pimp' is N.J. man who attended Rutgers University
• ACORN sting activist from N.J. hoped to record hidden video of New Orleans senator's staff
• ACORN sting 'pimp' from N.J. is arrested for attempting to wiretap Louisiana senator office
Oh what a shame, who are all those poor people gonna find to fund their illegal activities.
get the IRS in there and lock down their files.
But don't hold your breath, they are probably signing new leases under a different name as we type.
It should be noted that those who went into the offices were NOT dressed as a pimp and prostitute, as news reports suggested, and that the tapes were highly edited. James O'Keefe (the conservative activist who staged the events) has refused to release the unedited tapes.
What are the names of the New York and California organizations, you convienetly left them out of your report. Let us know, so that we will not, mistakenly, donate to them. Typical of the Star ledger, a frar left shill.
My how shocking and surprising that OBAMA hasen't bailed them out by now
This will probably be deleted by the Star Ledger because of their bias, but here is the information on the new ACORN identities in California and New York: California ACORN is now Alliance of Californians for Community Empowerment, and New York ACORN has become New York Communities for Change.
Terrible! How are these low-lifes going to make a living now?
This will probably be deleted by the Star Ledger because of their bias, but here is the information on the new ACORN identities in California and New York: California ACORN is now Alliance of Californians for Community Empowerment, and New York ACORN has become New York Communities for Change.
i guess Bertha is learning that its hard to run a business when other peoples money isnt just given to you....perhaps she should tell that to that other well known community organizer
She'll probably run for vice president in 2012.
We've upgraded our community features on NJ.com
Learn more! »-
TODAY IN NEW JERSEY
- • Send tips, photos, video
- POPULAR NEWS TOPICS
- JERSEY NEWSPAPERS
- Browse today's news:
-
Browse by week:
- STAR-LEDGER VIDEO
-
- PHOTOS
-
- COLUMNISTS
-
Comments
(13 total) RSS