AP/ September 21, 2009, 4:37 PM

Obama Backs ACORN Investigation

President Obama says there should be an investigation into the hidden-camera video involving employees at the activist group ACORN and a couple posing as a prostitute and her pimp.

The two ACORN workers are seen apparently advising the couple to lie about her profession and launder her earnings to get housing aid.

Watch: ACORN Misconduct Caught on Tape

The video is only the latest problem for the group, which had nearly $1 million embezzled by its founder's brother and has been accused of voter registration fraud. The House and Senate voted last week to deny federal funds to ACORN.

Mr. Obama told ABC's "This Week" in an interview broadcast Sunday that what he saw on the video "was certainly inappropriate and deserves to be investigated." But the president did not say who should investigate. And he said it is not a major national issue he pays much attention to.

"Frankly, it's not really something I've followed closely," Obama said. "I didn't even know that ACORN was getting a whole lot of federal money."

Asked about the president calling for an investigation, ACORN chief executive Bertha Lewis said Sunday, "Well, that's his opinion."

ACORN said last week it would order its own investigation of the video scandal. Lewis, who had promised to name an independent auditor by Friday, told "Fox News Sunday" that the announcement would take place Monday. She would not reveal the auditor.

Later Sunday, Lewis issued a statement saying, "We agree with President Obama's comments today that issues raised by the videos need to be investigated."

In the meantime, the group has suspended the admission of new clients to its housing program.

"Over the next several weeks, you will see us working triple time to get this review right so that we can refocus attention on ACORN's critical work for low- and moderate-income families," Lewis said in the statement.

The government is investigating ACORN's activities, though the scope of its activity is unknown. Voter registration fraud cases involving ACORN workers are pending. The Housing and Urban Development Department's inspector general has acknowledged an investigation is under way.

ACORN - short for the Association of Community Organizations for Reform Now - started in 1970 in Arkansas to help the poor and today is a national, multimillion-dollar conglomerate. ACORN's political action committee endorsed Obama for president, and his campaign paid an ACORN subsidiary $832,000 to help get out the vote.

Obama, himself a former community organizer, has long-standing ties to the group, which he represented in 1995 in a lawsuit against the state of Illinois over the "motor-voter" law.

The group's Democratic leanings and political work have made it a target of Republicans, who led the drive last week to deny it any further federal funds.

California Republican Rep. Darrell Issa, a member of the House Oversight and Government Reform Committee, pressed Lewis to reveal more about the group's operations.

"The bottom line is, there's no transparency in ACORN," said Issa, who also was on Fox.

"Here we have literally hundreds of organizations tied under the ACORN umbrella, and you can't even find out what their incorporation is, whether they pay taxes, who makes what," Issa said.

Lewis said she has made sure, since becoming chief executive last year, that affiliates have "firewalls" between them. "I've completely overhauled all of our finances, all of our controls," she said.

She also said founder Wade Rathke was fired immediately after it was discovered his brother, Dale, stole nearly $1 million from the organization nine years ago. In fact, Wade Rathke learned of the embezzlement in 2000, told only a few people but failed to report the embezzlement to law enforcement. An anonymous donor compensated the group for the missing money.
© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
109 Comments Add a Comment
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stek-t says:
When will Katie Couric report on the whole acorn mess?
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pepperwood2 says:
Sounds like Obama's A Korn Hole got another one over on The Troll. Jimmy cracked Korn and I don't care the master's gone away. cackle cackle cackle!
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NewYork-Joey replies:
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by pepperwood2 September 21, 2009 2:26 PM EDT
Sounds like Obama's A Korn Hole got another one over on The Troll. Jimmy cracked Korn and I don't care the master's gone away. cackle cackle cackle!
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"Bammy cracked acorn, and I don't care".....actually, I do care that the corrupt organization that helped Obama steal the election is prosecuted for their criminality and wide-open law breaking.
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NewYork-Joey says:
by faceofus September 21, 2009 11:58 AM EDT
Why did it take Obama so long?
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Well, after a week of the Liberal Media ignoring the story, making them look pretty pathetic, I'm sure the whitehouse was scrambling to turn this into an "extremist" or "right-wing fringe" story to save Acorn, but with repeated tapes (5) coming out right after another, they had no choice but to pretend minor outrage, and reluctantly "back" an investigation.
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faceofus says:
Why did it take Obama so long?
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jtom58 says:
BO only backs an investigation AFTER he has his back in a corner. If this hadn't been pressed by FOX, it wouldn't have come to light. Even FOX wasn't the one that got people really excited with the videos, it was a couple of bit players. CBS News doesn't cover the story, they rely on AP! CBS is no longer a news outlet. Pathetic.

BO's statement that this is not something he follows closely doesn't surprise me. After all what is $800+K (that his campaign donated to ACORN) when you are putting American taxpayers in the hole for trillions.
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NewYork-Joey says:
How's the healthcare going libs ?? I see it's a big heaping pile of smoking rubble.....LMAO !!
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NewYork-Joey says:
by hungry1968-16 September 21, 2009 11:02 AM EDT

Post ONE LINK, to ANY story, where Obama mentions Hannity or O'Reilly.

ANY SPEECH, statement, comment -- whatever you got -- post it.
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This is the question he asks....."Post ONE LINK"
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So, I post ONE link.......This is his response:
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by hungry1968-16 September 21, 2009 11:21 AM EDT
That's it?!?!

That' the ONLY mention of Hannity that you can find
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Does this stupid lib know what "ONE link" means ?
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ffoulkes-2009 replies:
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Doubtful
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hungry1968-16 says:
by ffoulkes-2009 September 21, 2009 11:16 AM EDT
Two...he was putting them in charge of the flipping 2010 CENSUS for goodness sakes.






They were NEVER going to "be in charge" of the Census, liar.

They were going to assist the Census Bureau in the inner cities, with getting the homeless people counted.

JUST LIKE THEY DID WITH EVERY CENSUS SINCE 1980!!!


Scrape, scrape, scrape......
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ffoulkes-2009 replies:
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proof?
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hungry1968-16 says:
by reasoned1955 September 21, 2009 11:15 AM EDT
Research the Annenberg Challenge, and another organization he served with, the Woods Fund, and B.O.'s involvement with ACORN. Arrive at your own conclusions.






The Annenburg Challenge was an attempt to get funding for Chicago's Public School system. (Since you conservatives OPPOSE education, I can see why this would bother you.)



The Woods Fund "is a private independent foundation in Chicago, whose goal is to increase opportunities for less-advantaged people and communities in the Chicago metropolitan area, including the opportunity to shape decisions affecting them."


I can't find ANY TIES between the Woods Fund and ACORN, other than on World Net Daily, AmericanThinker.com, and other conservative based, anti-American propaganda outlets, that ignore reality for their fabricated version of the truth. In fact, ACORN and the Woods Fund are entities that are COMPETING for the same donated dollars.


Keep scraping the bottom of that barrel.

You MIGHT find something. (Though I doubt it.)
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mt_guy says:
Here in MT, we had the Freemen out in the eastern part of our state. They were doing roughly the same things: refusing to pay taxes and teaching others how to avoid doing it.

When it comes to behavior such as is exhibited by ACORN, it is not specific to a particular political party by a long shot.
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ffoulkes-2009 replies:
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Yeah, but was a President of ANY party putting this group in charge of the census?
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