ACORN Misused Federal Grant Funds, Report Says

By Perry Chiaramonte
Published November 30, 2011

A funding group set up by now-defunct community organization ACORN had misappropriated money from a grant it received from the federal government, according to an audit report released by the Department of Justice.

The report examines an Office of Justice Programs grant to the New York Agency for Community Affairs, a 501(c) 3 nonprofit that was set up by ACORN for nearly $140,000 back in 2005.

The funds were originally granted to NYACA on behalf of ACORN, which requested the funds for a program to recruit and train youth leaders, but the scope of the project changed to advocate an increase in local funding for after-school programs with a sum of $100 million over three years. The change of the project's intent allegedly violated the conditions of the grant, because NYACA and ACORN did not receive approval from the Office of Justice Programs.

Click here to see a copy of the report.

“This report confirms that ACORN and its rebranded affiliates have used fiscal sponsorship in an illegal and abusive manner to launder taxpayer funds into its own coffers,â€