ACORN: GAO Investigation Finds No Misuse of Federal Dollars
David Sessions
Washington Reporter
Posted:
06/21/10
A preliminary report from the General Accounting Office has cleared ACORN of allegations that it misused millions of federal dollars over a four-year span.
According to the report, nine federal agencies gave the community group more than $40 million in eight housing-related grants from 2005 to 2009. There were no problems with seven of the eight grants, and ACORN supplied correct documentation for the eighth after it was notified the paperwork was missing. The GAO said it found no evidence of fraud or misuse of federal dollars.
ACORN CEO Bertha Lewis said the report "does nothing more than add to the growing list of government entities who have vindicated us," according to The Hill. ACORN has vigorously disputed charges that surfaced after a video sting by conservative activists showed low-level ACORN staffers giving tax advice regarding a prostitution ring. The group also faced charges from conservative media of voter fraud after the 2008 election.
In the wake of the video sting, Congress voted to strip ACORN of its federal funding, and the group eventually filed for dissolution. As five separate federal investigations began, private donors began to desert to organization. ACORN then began closing its 75 state offices and winding down its national activities.
According to the report, nine federal agencies gave the community group more than $40 million in eight housing-related grants from 2005 to 2009. There were no problems with seven of the eight grants, and ACORN supplied correct documentation for the eighth after it was notified the paperwork was missing. The GAO said it found no evidence of fraud or misuse of federal dollars.
ACORN CEO Bertha Lewis said the report "does nothing more than add to the growing list of government entities who have vindicated us," according to The Hill. ACORN has vigorously disputed charges that surfaced after a video sting by conservative activists showed low-level ACORN staffers giving tax advice regarding a prostitution ring. The group also faced charges from conservative media of voter fraud after the 2008 election.
In the wake of the video sting, Congress voted to strip ACORN of its federal funding, and the group eventually filed for dissolution. As five separate federal investigations began, private donors began to desert to organization. ACORN then began closing its 75 state offices and winding down its national activities.
A December 2009 report commissioned by the House Judiciary Committee found ACORN violated no federal regulations. That study, conducted by the non-partisan Congressional Research Service, also found that ACORN correctly used all federal dollars it received and did not improperly register any voters during the 2008 presidential election. An investigation by the California attorney general reached the same conclusion. An independent investigator hired by ACORN also cleared the organization of wrongdoing.
James O'Keefe, the conservative activist widely credited with bringing the group down, was later arrested on charges of tampering with phone lines in Sen. Mary Landrieu's state office. O'Keefe pleaded guilty.