ACORN

Floor Speech

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Mr. CARTER. I thank my fellow judge and friend from Texas, first off, for being here to start this, because I was across town, and was fighting the traffic to get back. I apologize for not being here on time, but sometimes things don't cooperate around here like they should.

We're starting off by talking about--and I think you've probably told people we're again addressing what we've been addressing every week now for probably 12 or 14 weeks. It's very simple that the rule of law must prevail in this country. That means that we have to have rules both of this House, of this Nation and of our States. We have to abide by those rules. The failure to abide by those rules has to have consequences. So we've been talking a lot about internal things that go on with the Ethics Committee and so forth here in the Congress. Now, tonight, we're talking about some things that are in the news that, once again, are under the subject of the rule of law. It puts a bright light on an issue that we really need to be concerned about, and that is the issue with ACORN.

I think, probably, an awful lot of people have seen this video, what we have right here. I know, if they watch Fox News, they've seen the video, but I think now it's being shown on other stations. It's of these actors who pretended to be a pimp and a prostitute, who went to ACORN and asked for their advice on housing and taxes. They were basically given a hand on how to do things--on how to do fraudulent activities, on how not to get caught, on how to beat the system, on how to be able to run a child prostitution ring, and on how not to claim those people as dependents because you don't want people to know about them--all kinds of things like that, things from an agency which is supposed to be there to help people, an agency which is supposed to be law-abiding, which has received $50 million worth of American taxpayer money to help fund that organization, and which is standing in line right now, based upon bills that have already been passed through this House, to pick up another $8 billion--with a ``b''--as a potential that could go into ACORN's hands as community organizers.

This shocking event happened not just at one place but in Baltimore, Washington, D.C., New York, San Bernardino, and San Diego. They all have videos showing this.

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Mr. CARTER. Reclaiming my time, the only thing is that the $8 billion right now was in the stimulus bill and in some of the other bills, and it's available to be played with right now; whereas, H.R. 3200 has yet to pass this House. We anticipate it might. If there's a party line vote, it might pass this House. You're right. There is additional funding in that bill.

As we talk about this scandal, which is a scandal that has broken on national news, let me point out that the Committee on Oversight and Government Reform of this House found that ACORN had committed the following offenses: voter fraud, tax evasion, obstruction of justice, aiding and abetting, embezzlement, investment fraud, use of taxpayer funding for partisan political activity, and Department of Labor violations.

Now, these are all things that have been raised by the Oversight Committee, the named ``Oversight Committee'' of this Congress. So, as we've talked about these various issues that involve the rule of law, what we want to do and what, I think, is necessary for this Nation to do is to--you know, a lot goes on in the dark, but when you put sunshine--sunlight--on an issue, you get to see a clear picture, and that's what we're about here. We're about putting sunshine on the issue so you can see a clear picture. This clear picture is awful. This country and anyone who stands up for this group of people should really be having second thoughts.

So here are some other issues that are listed, and we'll go into these, but I see my friend Virginia Foxx is here.

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Ms. FOXX. It's my understanding there is a stand-alone bill. It is up to the Speaker now to call that bill up from committee and then up for a vote; is that correct?

Mr. CARTER. That's correct. There is a stand-alone bill, and he is calling on the Speaker to call it up. If the Speaker doesn't call it up, he is going to ask for a discharge petition so that we can force it to be called up for a vote. If we maintain the vote we got before, then we will have evidence that now this Congress overwhelmingly says ACORN is through.

Although I think you have given a very adequate description of the politics that may be involved in this issue, let's go back to right and wrong, and, unfortunately, you can vote to make things sound like they look right when, in reality, the results come out wrong. I think that's a perfect point.

Ms. FOXX. Would the gentleman explain a discharge petition? I think that would be helpful.

Mr. CARTER. Yes. If you get enough votes to pass the bill that says I want this bill voted on, any Member can file a discharge petition asking that that bill be voted on. If he gets enough people to sign his discharge petition that it would pass, by the signatures on the discharge petition, then it will be called up against the ruling of the majority party.

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Mr. CARTER. Just look at this chart right here. Colorado, vote fraud, multiple counts with convictions. Florida, vote fraud, case pending. Michigan, vote fraud, multiple counts with convictions. Minnesota, vote fraud, multiple counts with convictions. Missouri, vote, mail fraud, identity theft, multiple counts with convictions. Nevada, vote fraud, multiple counts pending. Ohio, vote fraud, multiple counts with convictions. Pennsylvania, vote fraud, multiple counts with convictions. Washington, vote fraud, multiple counts with convictions.

So not only are there allegations of fraud, identity theft and other things, there are people who have been convicted by a court of those offenses. Realize that American taxpayer dollars go to fund every one of those organizations. There are, by the stimulus package and other things we have created, there are multiple grant applications out there in this spider web that Congressman Gohmert has so adequately described where there are all these offshoots, all these 501(c)(3)s out there that are nonprofits, with nonprofit status, and yet they can push up the money to the mother ship, if you will.

It's a real issue. It's an issue that, quite frankly, a team of very capable people at the Justice Department should be looking into, busting up as much of it as they can. But our job, from what we are trying to do here tonight, is let people see what's there. It's bad. It's awful.

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Mr. CARTER. Let me point out one thing. You made a very good point, Congressman Gohmert, when you said this internal audit thing isn't going to get it done. That's right. Let's just look at what Government Reform has discovered with the discovery they have done.

First, ACORN has evaded taxes, obstructed justice, engaged in self-dealing and aided and abetted the coverup of embezzlement by Dan Rathke, the brother of ACORN founder Wade Rathke.

Second, ACORN has committed investment fraud to deprive the public of its right to honest services and engaged in racketeering enterprises affecting interstate commerce.

Third, ACORN has committed conspiracy to defraud the United States by using taxpayer funds for partisan political activities.

Fourth, ACORN has submitted false filings to the Internal Revenue Service, the IRS, and the Department of Labor in addition to violating the Fair Labor Standards Act, FLSA.

Fifth, ACORN falsified and concealed facts concerning an illegal transaction between related parties in violation of the Employee Retirement Income Security Act, ERISA.

Now, all those things, in addition to what we have discussed, and an internal audit has already been done once with no information released. Basically they look at their own books and say, We are just fine.

We should have a full external audit of the books at ACORN and, quite frankly, I believe the Justice Department or this House should be involved in subpoenaing all the records of all the entities that are involved in this, and we should lay this picture out on the table, which brings us to another issue that I want to talk about.

ACORN, we can talk all day and all night, but there is a new thing out there that our colleague from Texas, Ron Paul, Congressman Ron Paul has brought out, and that is holding the Federal Reserve accountable; H.R. 1207, Congressman Ron Paul's bill that's pending before the Congress and trying to get the Federal Reserve audited.

Congress has given 700 billion in the Bush TARP, 787 billion in the Obama stimulus funds to the Fed. Congress and the taxpayers have no way to independently verify how those funds have been used. The American public wants to know what is happening with that money. The American public doesn't want any more double standards.

Quite frankly, this is a bipartisan bill, because, quite frankly, Ron Paul points out that 1207 is sponsored by Congressman Paul but has 290 cosponsors already. Obviously there are Democrats and Republicans on this bill. There is going to be a full hearing on this on Friday.

And I think people back home want to know, in fact, I got asked that the whole time I was home in August, and which I, if you recall, had said that on the floor of this House more than once, Where's our money? Where is it? What's happening to it?

The stimulus isn't being spent at a rate we were told it would stimulate the economy. Special projects are being funded. Where's our money?

And, then, what we forget is the Treasury and the Fed can independently pour more money into the economy. And I don't even know the number, but it could approach trillions of dollars.

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Mr. CARTER. Well, what our chart here shows, since 1913 the U.S. dollar has lost 95 percent of its purchasing power. The Federal Reserve has many privileges of government agencies, but many benefits of private organizations.

H.R. 1207 would open the Fed operations to enhanced scrutiny. The Federal Reserve Transparency Act would achieve much-needed transparency of the Federal Reserve. Under H.R. 1207, we would audit the Federal Reserve system and the Federal Reserve banks by the end of 2010. The Comptroller General would submit a report to Congress within 90 days. The report would include recommendations for legislative or administrative action.

On July 30, Ron Paul asked, Why are Wall Street and the Fed so hysterically opposed to H.R. 1207? Just what information are they so anxious to keep secret? Only an audit of the Federal Reserve will answer this question.

When you really get down to it, when it's our money and they have the ability to dump money into our economy by printing it, then with--with the help of the Treasury--then what's so unreasonable for asking for an audit? I think that's a perfect point.

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Mr. CARTER. Obviously, it didn't include Mr. de la Torre. And Mr. de la Torre was not treated the way the Secretary of the Treasury was treated.

I've been talking about others, but I want to go back to the Secretary of the Treasury, Mr. Geithner. The fox is watching the henhouse. He's the guy who's supposed to be watching over our money. Let's see what he didn't do.

He didn't pay Social Security and Medicare taxes for several years. The IRS audited Mr. Geithner in 2003 and 2004, finding he owed taxes and interest totaling $17,230. The IRS waived any penalties on Mr. Geithner. Could it have been because he was in the nomination process for Secretary of the Treasury? I think maybe so. I think so. It certainly wasn't your friend, Mr. de la Torre.

In 2008, they found he owed $25,960. He used his child's time at an overnight camp in 2001, 2004, and 2005 for tax deductions. Sleep-away camps don't qualify.

Recently, he filed $4,334 in additional taxes and $1,232 in interest for infractions including a retirement plan early withdrawal penalty, an improper small business deduction, and the expense of utility costs that went for personal use.

Now, this is the guy that's in charge of our IRS. He is the Treasurer of the United States.

Now we talked about the Rangel rule, where Mr. Rangel didn't pay his taxes and got no penalties and no interest assessed, which I find extremely curious. Now we ought to look at the Geithner rule. Mr. Geithner had interest assessed, but no penalties.

Now, what makes Mr. Geithner more special than Mr. de la Torre, which Mr. Geithner had to be found out by the IRS? Mr. De la Torre went to the IRS and said, Work with me. I have a going business. I have issues. I will get my money and I will pay you. And they said, Sorry, Charlie.

Now what's wrong with this picture? What should an average person back in their living room, back home, if they're watching this, think, that we've got special treatment for a man who comes from Goldman Sachs--is that where he came from?

Mr. GOHMERT. Well, he didn't. But he had been the former Chair of the Federal Reserve, which is an elected position by the bankers of that area.

Mr. CARTER. He originally was in Goldman Sachs, wasn't he? I think everybody who has been Treasurer for the last, I don't know, 20 years have been Goldman Sachs people. There's something interesting there, something we ought to look into.

Anyway, I want to know why Mr. de la Torre can't write ``Geithner Rule'' across his tax return and ask them to treat him this way, to let him be assessed with no penalties and interest which would drive him into the poorhouse. This is the kind of question I think the American people want to ask. I think they want to know, because the man they elected President said that he wasn't going to have a world where men and women of power got treated differently than ordinary citizens. That's why we are here. We're here fighting a good fight for what President Obama had promised this Nation would be the agenda of this administration. I think it's time to step up to the plate and start swinging because these fastballs are getting thrown at us. They are coming in high, hard and inside, and we've got to deal with them. With that, I will yield back to Mr. Gohmert.

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