What's $1 Million Between Friends? Wait, it's Actually $5 Million

Last year when news broke that Dale Rathke, brother of ACORN's Founding Father Wade Rathke embezzled close to $1 million from the organization even the New York Times was surprised.  Now we learn the figure may be closer to $5 million, what's the word for that? Oh yeah, a "credible allegation."

ACORN embezzlement was $5 million, La. attorney general says

By Robert Travis Scott

October 06, 2009, 5:46AM

Michael DeMocker / The Times-Picayune

The former ACORN headquarters at 1024-26 Elysian Fields Ave. is up for sale; the organization, which was founded in the New Orleans area, has moved its headquarters to Washington, D.C.

Louisiana's attorney general has broadened the scope of an investigation of ACORN to include a possible embezzlement of $5 million a decade ago within the community organization, five times more than previously reported.

ACORN Chief Executive Officer Bertha Lewis said the new reported amount is "completely false."

Attorney General Buddy Caldwell has been conducting an investigation of ACORN since June. He issued subpoenas in August seeking documents related to former ACORN International President Wade Rathke and his brother Dale Rathke, who kept the group's books. Those subpoenas were focused on possible ACORN violations for non-payment of employee withholding taxes, obstructing justice and violating the Employee Retirement Security Act. No charges have been made.

See the full story here.   See the subpoena here.