New Orleans - State investigators raided ACORN's Canal Street office. This is the latest development in the Attorney General's investigation into mismanagement at the non-profit.
The AG's office seized two truck loads of computer equipment.
The AG's investigation into ACORN started in 2008 when prosecutors say the non-profit didn't pay some of its taxes.
The investigation really heated up after news that ACORN's International President, Wade Rathke, tried to cover up embezzlement by his brother who once served as the organization's accountant "That was admitted in an ACORN board meeting and the amount of which we're still not sure about. Initially they said it was around $1 million, then it could be up to $2.5 million, then it could be $5 million," said Assistant Attorney General David Caldwell.
The AG's office raided acorn in hopes of heading of potential problems finding evidence. Caldwell says some of ACORN's computer disappeared and lawyers for the state don't want that to happen again "This is a very massive investigation to say the least because our statewide investigation covers so many things. It doesn't just cover theft, we have to track where all of that money went and there are a lot of umbrella organizations under ACORN. That's gonna take a whole lot of time," said Caldwell.
The organization's national office released the following statement:
"Over the last two months, ACORN has been cooperating with a variety of governmental entities across the country to provide requested information and documents. One of those inquiries came from the Louisiana State Attorney General's office. The AG's inquiry came in the form of a subpoena, which was issued in October and which requested virtually every document in the possession of ACORN and any related entity. ACORN was working diligently with the AG's office to understand the request and respond in a realistic manner, particularly because the subpoena requested well over a million documents.
Unfortunately, this morning the AG's office obtained a search warrant, which was executed by the seizure of ACORN's computers. We were told that the AG's office has no criticisms of ACORN's cooperative efforts, but rather that the warrant was issued because of concern that former local ACORN staff members had, and may intend in the future to, to remove or alter electronic documents.
ACORN has been assured that the computers will be returned in short order."
Caldwell says ACORN's lawyers have been cooperative on some fronts but they are holding up some accounting records prosecutors want to see.
The AG's investigation is not connected to ACORN's recent prostitution scandal.
In that case, a couple posing as a pimp and prostitute, allegedly recorded ACORN employees advising them how to buy a house that could be used as a brothel.
