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Senator Says Acorn Funneled Money to Political and Commercial Groups

September 25, 2009 | Read Time: 1 minute

Sen. Charles Grassley released documents Thursday showing that nonprofit community organizer Acorn transferred millions of dollars in donations and government money to political and for-profit entities, The Washington Post reports.

Mr. Grassley, an Iowa Republican, called Acorn’s transactions a “big shell game” and called on the Internal Revenue Service to investigate possibly “impermissible lobbying and political activity” by the group.

Acorn officials said Mr. Grassley’s accusations are based on transactions conducted before a leadership shake-up last year that forced the organization’s founder, Wade Rathke, to leave after he admitted to covering up his brother’s embezzlement of Acorn funds. Bertha Lewis, the group’s current head, said she has shut down dozens of questionable Acorn affiliates and that Mr. Grassley is “dealing with a lot of outdated information.”

Plus: The Treasury Department’s inspector general is looking into the government’s oversight of political activities by Acorn and other tax-exempt groups, reports the Associated Press.

(Free registration is required to view the Post article and to read the AP article on the New York Times site.)