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October 06, 2009

La. Court Papers Allege Bigger Embezzlement at Acorn

Citing Louisiana court papers, The New York Times reports that the amount embezzled a decade ago from the embattled community organizer Acorn was more than five times the publicly acknowledged figure.

According to a subpoena served by Louisiana’s attorney general in connection with a probe of alleged tax and other violations by the nonprofit organization, an Acorn internal review revealed that Dale Rathke, the brother of Acorn’s founder, Wade Rathke, embezzled $5-million from the group in 1999 and 2000.

Current Acorn chief executive Bertha Lewis denied the report, saying the internal review showed Dale Rathke stole a little less than $1-million, as Acorn had previously disclosed. She said the larger figure came from two former Acorn directors who had been voted off the board.

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