Steve Kest, executive director of ACORN, right, and ACORN member Hugh Alleyne. (AP photo)
(CNSNews.com) - The chairwoman of the Washington, D.C.-Northern Virginia chapter of ACORN said corruption in the organization stems from a top-down approach, as decisions for more than 300 affiliate organizations are made by about 30 or 40 individuals.

Marcel Reid, who headed the board of the D.C. chapter of the Association of Community Organizers for Reform Now (ACORN), explained how she and other board members are now in "exile" for asking too many questions about the finances of the national organization in 2007 and 2008.

Further, she said the organization was so cleverly set up that it would be difficult to investigate it, even if federal prosecutors or state prosecutors take the initiative.

“It was a number of non-profit and a number of for-profits, and there is nothing to ACORN itself but paper,” Reid told a forum at the National Press Club Thursday sponsored by Judicial Watch.  She added that “ACORN invites lawsuits” because its myriad affiliates make it difficult to pin any responsibility on the central organization.

In the ACORN structure, a chapter is locally run portion of the national group, while an affiliate is technically a separate corporate organization that falls under the ACORN umbrella.

For example, she said, in the case of the two amateur video journalists posing as a pimp and a prostitute, they entered the premises of ACORN Housing, an ACORN affiliate. Reid predicted that ACORN will claim exoneration on technical grounds.

“ACORN Housing on paper is not ACORN. They can use that fine point. They have been so very effective at never being caught,” Reid said. “Before a real prosecution of what ACORN has done and the people they have hurt, they first need to understand what ACORN is. The people who built this organization are brilliant.”

ACORN has been a focal point of controversy since the last presidential election cycle, when questions of voter registration fraud erupted.

Reid was never formally removed as chairwoman of the ACORN's D.C. local board, because the board denied requests from the national group to oust her, D.C. ACORN board member Charles Turner told CNSNews.com. The board is made up of voluntary members.

The national organization disassociated itself from the D.C. board, Turner said.

Turner said the D.C. chapter has had one of the highest dues collections of any chapter in the country, but when the local board sought funds for a tutoring program, the national organization continually told them there was no funding available.

“They are choking out or getting rid of everybody who speaks up or is asking too many questions,” Turner told CNSNews.com.

CNSNews.com could not reach ACORN’s national headquarters after a phone call and e-mail message Thursday.

But a Dec. 7 internal investigation released by the organization found that ACORN employees in the undercover video were not engaged in any criminal conduct.

The internal ACORN report was done by former Massachusetts Attorney General Scott Harshberger, who called for the organization to take nine steps to strengthen its management and oversight structures. The recommendation included a simplified organizational structure, a return of focus to its "core competency community organizing and citizen engagement empowerment, with related services" and recruitment of additional management and legal staff.
 
"The following nine (9) recommendations are neither an epitaph nor an absolution for ACORN, but are a roadmap to reform and renewal, if implemented in their entirety in concert with other measures to regain the public's trust," Harshbarger's report states.

Reid called the report “Harshbarger Hogwash.”

Though ACORN was already under scrutiny by state prosecutors and some media organizations, it was the hidden camera probe that prompted the internal investigation.

A hidden-camera video showed ACORN workers apparently giving tax advice to a purported pimp and prostitute who said they planned to open a business involving underage girls.

These incidents, repeated at several ACORN offices, drew rebuke from Republicans and from the White House.

Because of those hidden-camera reports, the U.S. Census Bureau terminated its partnership with ACORN for the 2010 census. Also, the Internal Revenue Service removed ACORN from its Volunteer Income Tax Assistance Program.

The Harshbarger's report states: "While some of the advice and counsel given by ACORN employees and volunteers was clearly inappropriate and unprofessional, we did not find a pattern of intentional, illegal conduct by ACORN staff; in fact, there is no evidence that action, illegal or otherwise, was taken by any ACORN employee on behalf of the videographers (pg 2 -3)."


Congress included in the Continuing Appropriations Resolution for 2010 a provision that bars federal funds to ACORN and its “affiliates, subsidiaries or allied organizations.”

President Obama signed the resolution, but a Justice Department opinion cleared the way for funds from the Department of Housing and Urban Development to continue going to the organization.

Last week, U.S. District Judge Nina Gershon of the Eastern District of New York, granted a preliminary injunction to stop Congress from singling out ACORN for punishment without proper investigation or due process.
 
The federal government has awarded at least $53 million to ACORN and its affiliates since 1994, according to an analysis by the House Republican staff.