"Acorn files for bankruptcy" – Daniel Massey - Crain's New York Business

"Acorn files for bankruptcy" – Daniel Massey - Crain's New York Business

Among the controversial community-organizing group's biggest creditors: Atlantic Yards developer Forest City Ratner, owed $1 million for a 2009 loan.

by: Daniel Massey | publication date: November 3, 2010 | Publication: Crain's New York Business |

"Beleaguered community organizing group Acorn filed for Chapter 7 bankruptcy Tuesday, marking the end of a tumultuous two-year period in which attacks by conservatives and its own missteps proved too much to overcome.In a statement on Acorn's website, Chief Executive Bertha Lewis said she saw the end “coming for some time,” and blamed the group's downfall on “a political onslaught” that caused the organization “irreparable harm.” Acorn had become a GOP target by registering 3 million voters in swing states that turned blue in the 2008 presidential race. But it also made blunders of its own, including shoddy record-keeping and its founder's cover-up of his brother's $1 million embezzlement from the organization.Already weakened by the cover-up and allegations of widespread voter-registration fraud in the months before the 2008 presidential election, the final straw came last year when conservative activists masquerading as a prostitute and her boyfriend visited Acorn offices around the country and made hidden camera recordings. The videos, selectively spliced to make it appear as if employees were breaking the law, exploded onto the Internet and Fox news late last summer."

After defunding and fighting investigations into the organization's practices based on O'Keefe's sting, Acorn goes bankrupt.

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