Update: Acorn Scales Back Operations Amid Recession and Scandals

Already shrinking as a result of the recession, the embattled Association of Community Organizations for Reform Now, or Acorn, is shutting down more chapters in the wake of furor over hidden-camera videos showing staff members apparently offering advice on opening a brothel and evading taxes, reports the Los Angeles Times.

Brian Kettenring, a spokesman for the group, said the economic downturn was the main culprit in the closure of 40 percent of its centers since reaching a high of 105 offices two years ago. The centers offer low- and middle-income clients help on housing, employment, and other issues.

Former Acorn members say the scandals that have raised conservative ire, including the recent video flap and allegations last year of voter-registration fraud, have also taken a toll.

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