We’ve all heard about the $1 million embezzlement a ACORN funds byWade Rathke’s brother (Dale). I will still never understand how this man is not in jail – even more now.
I never paid too much attention to the details of the embezzlement. Then yesterday “the memo” was released. Matthew Vadum has been exhaustively covering details of the ongoing ACORN scandal:
The advice from Elizabeth Kingsley of Harmon, Curran, Spielberg Eisenberg LLP came in the form of an eerily prophetic legal memo to ACORN dated June 19, 2008, the day before ACORN’s national board fired disgraced founder Wade Rathke.
If you have a few minutes the article ACORN’s Prophetic Lawyer is a worthy read.
This embezzlement was not just a run of the mill crook stealing corporate funds (our money for the most part). This money was stolen from pension plans, ACORN Beneficial Association, or ABA and the ACORN Fund, a similar discretionary health care fund.
Minutes from a meeting ACORN held in Los Angeles last summer reveal a group then on the brink of financial collapse. “Currently owe over $800k to IRS,” the minutes note. “Haven’t paid medical bills of over $300k. We are essentially ‘broke’ nationally and lots of offices are struggling.”
If all of the money was paid back, why did they not have the money to pay medical bills? ACORN Fund, apparently had advanced a large amount of money to ACORN so the fund didn’t have the money to pay the medical bills.
There is the appearance, at least, that money was taken out of (or not paid back to) a fund established to cover employee health care costs in order to cover the cash shortfall caused by the embezzlement.
At least $215,000 of the embezzled funds were never paid back – “ABA decided to write this debt off as a gift to ACORN”. Of course ABA didn’t decide to write off this debt – Wade Rathke did.
This is the group that’s supposed to ‘protect’ employees right?
This is the group that pickets those evil rich people that ‘steal’ money from the poor? All the while the rich Rathke’s are stealing from truly poor people.
Interesting tidbit from last week:
Joel John Morris, of Bend was sentenced Monday by U.S. District Judge Michael W. Mosman to 24 months in prison to be followed by 36 months of supervised release. Morris pled guilty in May 2009 to one count of Embezzlement from an Employee Benefit Plan.
In all, Morris made eight illegal withdrawals from the pension plan totaling $269,000.
“Mr. Morris’ theft of his own employees’ retirement funds was unconscionable,” said Kent S. Robinson, the Acting United States Attorney for the District of Oregon. “This case should send a message that prison is waiting for any corporate executive who illegally raids the company’s pension plan.”
This investigation was conducted by the U.S. Department of Labor – Employee Benefits Security Administration and was prosecuted by Assistant U.S. Attorney Craig J. Gabriel.
Really……………so where is the jail time for the Rathke brothers? Where’s the justice for the ACORN employees that are victims of this crime?