Money laundering

Well, you knew it would happen: Shortly after I gave Larry Johnson an epic dissing for his blinkered endorsement of the Techdude/COLB red herring, he publishes an expose filled with truly interesting stuff.

(By the way, I've quietly received some interesting new info on the "Who-is-Techdude?" front. At this point, I'm not sure if audience interest justifies publication. Maybe on the weekend...?)

The new piece by Eastan McNeal -- a writer previously unknown to me (probably a pseudonym) -- presents evidence suggesting that the Obama campaign may have engaged in money laundering. Also see here.

To summarize: Between February 25 and May 17 of this year, the O Team dumped $832,598 on an unknown firm called Civilian Services Inc. (CSI), headquartered out of what appears to be a tiny residential dwelling in a suburb of New Orleans. Many facts indicate that that CSI is a front for the well-known -- and, in some circles, notorious -- group called ACORN (Association of Community Organizations for Reform Now).

ACORN and a number of ACORN-related groups also listed that house as a local address. ACORN and CSI also share offices in Chicago. Jeff Robinson, the titular head of CSI, is also a director of ACORN. All CSI officers are also ACORN officers.

You get the picture.

Much of the money -- in the form of checks for the whopping amounts of $310,441, $160,689, $74,578, and $18,633 -- went to CSI for providing "Staging, Sound and Lighting." They also got big money for "Polling."

Unfortunately, CSI is not in the business of providing theatrical extravanganzas, and they don't do polls. By their own admission, they do grass roots organizing -- Get Out The Vote stuff. McNeal confirmed this point by talking to a listed director of CSI, who has the wonderful name of Sunday Alabi. (If you are naughty, you may be tempted to misspell that surname.)

McNeal notes that the FEC has prosecuted other campaigns for just these sorts of shennanigans -- paying a firm for services other than those officially listed. That way corruption lies.

As demonstrated in previous articles, here, in newspapers, magazines and on television news stations, ACORN is a critical part of the Obama field operations. So why is the campaign writing checks to CSI for this work ostensibly performed by ACORN? It is reasonable to assume that the campaign would not want to be directly affiliated with, through disclosure reports, an organization that has been prosecuted or is under investigation in twelve states for election fraud. More recently, on June 2nd, ACORN’s founder, Wade Rathke had to step down from his post after it was discovered that he covered up a one million dollar embezzlement scheme committed by his brother, Dale.

Money is fungible. The payments to CSI in Louisiana come close to covering the pay-off to Dale.

You can also read more about the strange interactions between ACORN, CSI and Camp Obama here. The most troubling accusation holds that CSI did GOTV work in Ohio (and received recompense of nearly $600,000) even though the group did not have a permit to operate in that state.

Some readers may now go into snark mode, since I have -- in previous posts -- praised ACORN. A word of explanation is in order.

It is true that the group has done many good things: Helping the needy, advocating on behalf of the homeless, fighitng for low-interest home loans to poor people, rebuilding 1400 homes for Katrina victims, and so forth. But in recent years, troubles have beset the group. While it would be comforting to to believe that these troubles exist only within Republican propaganda, the evidence suggests otherwise.

First came the embezzelment scandal, quietly resolved with a promise to repay over time. (The public did not learn of the matter until this year.) In 2003, the group was accused of union-busting within its own ranks, after two ACORN field organizers tried to unionize after working long hours for tiny pay. In light of ACORN's "living wage" advocacy, this contretemps made the group seem hypocritical.

Conservatives have focused on accusations that ACORN volunteers have submitted false registrations. These accusations have led to indictments and convictions. ACORN has argued that the fake registrations resulted not from any systematic scheme to sway elections but from individual attempts to defraud the group. (If I recall correctly, field agents were paid by the name, which is a pretty good inducement for concocting fake names.) The organization brags that it has helped to bring the fraudsters to justice.

All in all, I still believe that ACORN has, over the years, done much more good than harm. But the seed -- or perhaps we should say, the acorn -- of corruption may have begun to sprout.

The obvious question: What was the real purpose of these hidden payments? Although CSI appears to have received questionable payments in more than one state, McNeal's current article concentrates on Louisiana. Obama won handily in that state's primary, 57% to Hillary's 35%.

I'm more concerned about the caucus states. Many have suggested that fanatical Obama supporters did everything they could to game those contests. If that charge is true, then the on-the-ground efforts must have been organized. Who did the organizing?

At any rate, I must (very grudgingly) doff my chapeau to the folks at No Quarter for running this series. Unlike that COLB calamity, this smells like something real. Pseudoscience? I dig it not. Investigative reporting? Now that I dig.

Some Obots will want to offer the usual rationalizations: "It's unimportant." "This happens in every campaign." "McCain does it too." "Hillary did it too." As always, an accusation of this sort seems like piffle when the target is a candidate you like -- even though the same charge would seem extremely important if the target were someone you don't like.

In the end, money laundering is money laundering.