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ACORN Negotiating To Sever Ties With Founder

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The New York Times

Published: October 16, 2008

Even as it battles charges of fraudulent voter registration practices in more than a dozen states, the Association of Community Organizations for Reform Now, or ACORN, is negotiating to sever all ties with its founder, whose brother embezzled almost $1 million from the group.

Two board members and Bertha Lewis, the organization's interim chief organizer, or chief executive, met last week in New Orleans to hammer out a deal with the founder, Wade Rathke, according to board members who learned Tuesday of the talks.

Rathke resigned as chief organizer after it became public this summer that his brother had embezzled almost $1 million from the organization eight years ago.

Rathke retained control of ACORN International, however, and maintained its offices in buildings in New Orleans shared by ACORN and many of its 174 affiliates.

Foundations that support ACORN financially, as well as many of the 51 voting members of its board, have been critical of that arrangement, saying it allows Rathke to retain his influence over the organization.

The deal, as described by board members, would hand Rathke control of the Wal-Mart Alliance for Reform Now, or WARN, an ACORN affiliate.

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