As originally posted in the reader-diary section of Firedoglake.com; the post’s 2010 comment thread is available at that link. On Friday, August 13, 2010 [“As Corrected” September 7, 2010 (see Appendix A)], the Second Circuit appellate panel of Roger J. Miner, José A. Cabranes, and Richard C. Wesley overturned Judge Nina Gershon’s findings below, by unanimously declaring that the Congressional singling-out of ACORN – on a regular annual basis, to bar it and its undefined “affiliates, subsidiaries, or allied organizations” even from consideration for federal funding programs – did not qualify as legislative “punishment” or an Unconstitutional Bill of Attainder. [The panel then “…remand[ed] for further proceedings as to the plaintiffs’ First Amendment and due process claims.”] A judgement with which the Harvard Law Review, for one, laudably disagreed, in this January, 2011 review of the ACORN case and Second Circuit opinion [HLR: “In holding that the denial of funds was not punitive in this case, the Second Circuit relied on Congress‘s implicit conclusion that ACORN had committed the acts of fraud and mismanagement of which it was accused [without formal indictment], a judgment Congress is not entitled to make.45 Extrapolating from past acts, the court also assumed that ACORN’s allegedly fraudulent conduct would continue, and that the instances of mismanagement could be imputed to ACORN’s various affiliates and subsidiaries,46 many of which carried out tasks wholly unrelated to the charges of fraud. […] Had Congress not determined that ACORN was guilty of fraud and misconduct, there would have been no reason to bar the organization from receiving federal funding.55 This species of legislative action is exactly the evil that the Bill of Attainder Clause aims to prevent: congressional pandering to popular whims and the subversion of separation of powers for the sake of political expediency.” (emphasis added)]. Yet, without explanation, on November 23, 2010, the Second Circuit as a whole declined ACORN’s petition for an en banc review of the panel decision. Subsequently, on February 22, 2011, ACORN, working with the Center for Constitutional Rights, filed a petition for a writ of certiorari of the Second Circuit panel decision with the Supreme Court. But the Supreme Court couldn’t be bothered to address this rare and important Bill of Attainder case, and, on June 20, 2011 (after twice granting the government month-long extensions of time in which to file its response to ACORN’s petition), refused to hear or review ACORN’s case, thus rebuffing ACORN’s plea for justice in the American courts, and dismissing out-of-hand Judge Gershon’s two careful, thoughtful rulings. Like the Supreme Court, Congress didn’t convene, or invite ACORN to, even a single public hearing to allow the ACORN organization to respond to the wild and highly-politicized accusations that Members of Congress were making against it, before depriving ACORN, and ACORN alone (at least until the next animosity-fueled passionate impulse sweeps through Congress and a cowed presidency, this time with advance Judicial Branch blessing), of the opportunity to even be considered for taxpayer-financed federal funding opportunities for which it might like – or have liked – to apply.
Specifically, government counsel from the Obama DOJ, and ACORN and its attorneys from the Center for Constitutional Rights (CCR), head to:
United States Court of Appeals for the Second Circuit [in New York City]
[Ceremonial Courtroom (9th Floor)]
on Thursday, June 24, 2010 (sometime late in the morning) in
ACORN, et al
v.
United States of America, et al
Docket numbers 09-5172-cv and 10-0992-cv
before:
Roger J. Miner, Senior Circuit Judge
José A. Cabranes, Circuit Judge
Richard C. Wesley, Circuit Judge
Background of the case, from Federal Judge Nina Gershon’s final ruling on March 10, 2010:
While there are minor disputes about factual matters, the parties agree that there are no material issues of fact that prevent resolution of this case without a trial.
[…]
ACORN’s critics consider it responsible for fraud, tax evasion, and election law violations, and members of Congress have argued that precluding ACORN from federal funding is necessary to protect taxpayer money. ACORN, by contrast, while acknowledging that it has made mistakes, characterizes itself as an organization dedicated to helping the poor and argues that it has been the object of a partisan attack against its mission. This case does not involve resolution of these contrasting views. It concerns only the means Congress may use to effect its goals. Nor does this case depend upon whether Congress has the right to protect the public treasury from fraud, waste, and abuse; it unquestionably does. The question here is only whether Congress has effectuated its goals by legislatively determining ACORN’s guilt and imposing punishment on ACORN in violation of the Constitution’s Bill of Attainder Clause.
[…]
Section 163 [of the Continuing Resolution Congress passed last fall to temporarily fund government agencies because of its failure to pass the appropriations bills for FY 2010 before the year began on October 1, 2009] provides that:
None of the funds made available by this joint resolution or any prior Act may be provided to the Association of Community Organizations for Reform Now (ACORN), or any of its affiliates, subsidiaries, or allied organizations.
The Continuing Resolution containing Section 163 went into effect on October 1, 2009, and was extended on October 31, 2009 to December 18, 2009.
[…]
Plaintiffs [ACORN] filed suit in this court on November 12, 2009, arguing that Section 163 is an unconstitutional bill of attainder and that it violates their rights under both the First Amendment and the Due Process Clause. In their initial complaint, plaintiffs alleged that, as a direct consequence of Section 163, agencies have refused to review their grant applications; that grants they were told they would receive have been rescinded; that previously-awarded grants have not been renewed; and that HUD had refused to pay on its contractual obligations even for work already performed. Plaintiffs also alleged that other organizations, such as private corporations and foundations, have cut ties to them as a result of Section 163.
[…]
Plaintiffs sought emergency relief on November 13, 2009, arguing that Section 163 was an unconstitutional bill of attainder and that it violated their rights under both the First Amendment and the Due Process Clause. On December 11, 2009, I preliminarily enjoined then-defendants the United States, Peter Orszag, in his official role as Director of OMB, Shaun Donovan, in his official role as Secretary of HUD, and Timothy Geithner, in his official role as Secretary of the Treasury, from enforcing the provision, on the grounds that plaintiffs had shown irreparable harm and a likelihood of success on the merits of their claim that Section 163 is a bill of attainder.[Footnote 3] ACORN I, 662 F. Supp. 2d at 299-300.
[Footnote 3:] The government appealed that decision on December 16, 2009, but has not moved in the Second Circuit to expedite the appeal. By letter dated February 12, 2010, the government asked for a due date of May 13, 2010 for its opening brief in the Court of Appeals, which request was “so ordered” on February 17, 2010.
On December 16, 2009, President Obama signed into law the 2010 Consolidated Appropriations Act. Consolidated Appropriations Act, 2010, Pub. L. No. 111-117, 123 Stat. 3034 (2009). This Act, described by the government as a “minibus” Act, is a consolidation of various appropriations acts for Fiscal Year 2010.
Several of the consolidated acts contain provisions prohibiting the award of funding to ACORN.
[…]
Following the enactment of the minibus bill, Congress passed and the President signed into law the final outstanding appropriations bill, the Department of Defense Appropriations Act of 2010, which prohibits distribution of funds under the act to ACORN or “its subsidiaries.” Department of Defense Appropriations Act, Pub. L. No. 111-118, Section 8123, 123 Stat. 3409, 3458 (2009). Once this final appropriations act was passed, the Continuing Resolution, and thus Section 163 included in it, expired.
On consent of the government, plaintiffs filed a second amended complaint including all five Fiscal Year 2010 appropriations provisions that prohibit funding to ACORN as well as Section 163. Plaintiffs named three new defendants: Lisa P. Jackson, Administrator of the Environmental Protection Agency (“EPA”); Gary Locke, Secretary of Commerce; and Robert Gates, Secretary of Defense.
Plaintiffs and defendants agree that, for the purposes of the bill of attainder argument, the challenged provisions should be analyzed as one statute. Although several of the full year appropriations acts use language slightly different from that of Section 163, neither plaintiffs nor defendants have suggested that any of these differences is significant, either practically or legally.
[…]
Plaintiffs acknowledge that HUD, pursuant to the OLC memorandum [requested by HUD, and issued privately on October 23, 2009 and publicly in late November, 2009] has paid, or has agreed to pay, for work already performed under existing contracts. […]
The defendants recognize that ACORN has been singled out by Congress and that there has been no judicial trial at which ACORN has been found guilty and deserving of punishment, but argue that the challenged legislation is not a bill of attainder because it does not impose punishment. The government relies heavily on Section 535 of Division B of the 2010 Consolidated Appropriations Act, which directs the United States Government Accountability Office (“GAO”) to “conduct a review and audit of the Federal funds received by [ACORN] or any subsidiary or affiliate of ACORN” to determine
(1)whether any Federal funds were misused and, if so, the total amount of Federal funds involved and how such funds were misused; (2) what steps, if any, have been taken to recover any Federal funds that were misused; (3) what steps should be taken to prevent the misuse of any Federal funds; and (4) whether all necessary steps have been taken to prevent the misuse of any Federal funds.
Commerce, Justice, Science, and Related Agencies Appropriations Act, 2010, Pub. L. No. 111-117, Div. B, Section 535, 123 Stat. 3034, 3157-58 (2009). Section 535 directs that within 180 days of enactment of the Act, the Comptroller General “shall submit to Congress a report on the results of the audit…, along with recommendations for Federal agency reforms.” Id. Plaintiffs do not challenge the Section 535 provision as a bill of attainder, but the government relies on the investigation to argue that Congress had a non-punitive reason for passing the challenged provisions.
The mandated GAO review and audit of ACORN
The said GAO review and audit was issued in preliminary form last week:
The Consolidated Appropriations Act, 2010, directed us to issue a report on ACORN within 180 days (by June 14, 2010).3 We also received three request letters from a total of 23 members of Congress asking that we provide information on federal funding provided to ACORN and oversight of the use of this funding.
[…]
Given that our analysis related to these objectives is ongoing, the information in this report is preliminary and subject to change. We plan to issue a report later this year with our final results related to ACORN and potentially related organizations.
[…]
Scope and Methodology
To identify funding awarded to ACORN or potentially related organizations and its purpose, we asked 31 federal agencies to identify funding (grants, contracts, or cooperative agreements) awarded to ACORN or potentially related organizations from fiscal years 2005 through 2009 and, to the extent possible, any funding that may have gone to ACORN or a potentially related organization as a subaward (subgrant or subcontract) during this period.8 We requested information on federal funding that was awarded to ACORN or potentially related organizations, regardless of whether the funding had been dispersed to or expended by the organizations.
[…]
To identify the monitoring processes for funds awarded to ACORN or potentially related organizations, we obtained and compared the agencies’ monitoring protocols with documentation of the steps agencies took to monitor these awards.10 We interviewed and obtained documentation from grant program managers and staff from six of the nine agencies that reported providing funding to organizations on the CRS [Congressional Research Service] list: NeighborWorks, the Election Assistance Commission (EAC), the Corporation for Public Broadcasting (CPB), the Environmental Protection Agency (EPA), the Department of the Treasury (Treasury), and the National Endowment for the Arts (NEA).11 We discussed their monitoring processes and how they decided which mechanisms to apply for particular awards. We also asked grant program managers and staff to identify any problems that agencies found through the oversight process and explain how these were resolved. […]
For our third objective, we reviewed information from DOJ—including the Federal Bureau of Investigation (FBI) and DOJ litigating divisions12—as well as the 31 agencies within the scope of our review and the investigative components of the IGs of those 31 agencies to identify any investigations or prosecutions they have conducted of ACORN or potentially related organizations since fiscal year 2005.
[…]
We conducted this performance audit from December 2009 through June 2010 in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives.
Results in Brief
Nine agencies—HUD, DHS, DOJ, EAC, NeighborWorks, CPB, EPA, Treasury, and NEA—identified approximately $37.5 million in direct federal grants and at least $2.9 million in subawards (i.e., grants and contracts awarded by federal grantees) to ACORN or potentially related organizations, primarily for housing-related purposes during fiscal years 2005 through 2009. […]
Agencies employed several mechanisms—ranging from reviews of progress reports submitted by grant recipients to on-site monitoring—to oversee the eight direct grants for which we received documentation on their oversight process; agencies generally did not identify any problems with seven of the eight grants.15 Agency officials said that they considered the grant amount and availability of personnel and resources as factors in deciding what type of monitoring to conduct. Agency monitoring efforts identified and resolved a problem with one of eight direct grants to ACORN or potentially related organizations for which we obtained information on oversight. Specifically, NeighborWorks determined that ACORN Housing Corporation had not provided a description of what it planned to accomplish under the grant, as required. After NeighborWorks brought this to the attention of ACORN Housing Corporation officials, these officials subsequently provided the documentation.
[…]
In addition to their routine grant oversight, all six of the agencies included in our review that have provided funding directly to ACORN or potentially related organizations since fiscal year 2005 have initiated either IG or internal reviews of these organizations’ use of federal funds in response to congressional requests or at the agency’s own initiative. The DOJ IG completed its review in November 2009 and the CPB, DHS, EAC, and HUD IG reviews, as well as the NeighborWorks review, were ongoing as of May 24, 2010. Table 4 includes the information we obtained from these agencies regarding their reviews.
Distinct from routine grant oversight and monitoring efforts, which are intended to assess whether grantees are meeting the purposes of the grant program and spending funds appropriately, federal agencies may also conduct investigations of an organization or an employee of an organization to determine whether the organization or employee violated federal law. In the closed matters, closed investigations, and prosecutions since fiscal year 2005 provided by the FEC, the FBI, and EOUSA, ACORN and four potentially related organizations (Project Vote, Citizens Consulting, Inc., Citizen Services Inc., and SEIU Local 100) or their employees were involved to varying degrees in the investigated allegations, as detailed in the tables below. The allegations involved generally related to voter registration fraud and election fraud. IGs can also conduct investigations to determine whether an organization or individual violated federal law. However, of the 31 IGs that we contacted, 29 stated that they had no ongoing or closed investigations of ACORN or potentially related organizations since fiscal year 2005.26 Officials from TIGTA stated that they could not comment on whether their office had conducted any investigations of any ACORN or potentially related organizations since 2005 because section 6103 of the Internal Revenue Code prohibits the disclosure of taxpayer information by the Internal Revenue Service, except in specifically enumerated circumstances.27 The HUD IG’s Office of Investigations declined to comment on whether it had any open or closed investigations involving ACORN or potentially related organizations.
[…]
The FEC identified four closed matters that involved allegations that ACORN or potentially related organizations violated the Federal Election Campaign Act.28 For each of these matters, the FEC determined that there was no evidence that such violations occurred. These matters are summarized in table 5.
[…]
EOUSA identified six closed cases that involved employees of ACORN. The charges filed did not allege wrongdoing by ACORN or any potentially related organizations. The six cases generally involved alleged voter registration fraud; all but one of these cases resulted in a guilty plea by the defendant. These cases are summarized in table 7.
[…]
Five of the federal agencies—DOJ, HUD, NEA, Treasury and NeighborWorks—did not provide formal written comments to be included in this report, but instead provided technical comments, which we incorporated as appropriate. In an email received June 8, 2010, the EPA liaison stated that EPA had no comments on the report and on June 9, 2010, CPB and DHS’s liaisons said that their agencies had no comments on the report. In an email received June 9, 2010, EAC’s Director indicated that the draft report accurately reflected the agency’s grants to Project Vote and their management, and had no further comments.
[…]
According to ACORN and Project vote officials, the organizations provided information to local election officials that helped initiate prosecutions against their employees who may have been involved in voter registration fraud. We are working to verify this information and will include the results of our efforts in our final report on ACORN to be issued later this year. ACORN and Project Vote officials also stated that they have a comprehensive quality control system in place designed to identify voter registration fraud.
Yup, sounds like a real “federal case” outlined there, all right…
No wonder the House and Senate jumped all over it last year, instead of focusing their collective attention on or meaningfully tackling egregious and ongoing matters like this, which was being publicly reported last November just as the screws were being put to ACORN:
“U.S. taxpayer dollars are feeding a protection racket in Afghanistan that would make Tony Soprano proud,” [Representative John] Tierney said, referring to the fictional mob leader in the TV series “The Sopranos.”
Military authorities in Afghanistan have only been concerned that the supplies reach their destination and the warnings they received from the trucking companies about extortion payments “fell on deaf ears,” said Tierney, who chairs the House Oversight and Government Reform national security subcommittee.
Army Lt. Gen. William Phillips, a senior Pentagon acquisition official, said he was unaware of the allegations that U.S. tax dollars may be indirectly bankrolling the insurgency and promoting instability in Afghanistan.
[…]
Members of the subcommittee weren’t impressed. “Warlord Inc.,” a report released Monday by the panel’s Democratic staff, noted that a military task force has been examining allegations since last year of extortion and corruption stemming from the contract. But the report paints the inquiry as slow moving and unfocused.
“There seems to be very little indication the Department of Defense is doing anything,” said Rep. Jeff Flake of Arizona, the subcommittee’s top Republican.
[…]
Nearly $700,000 per day is spent on average moving supplies throughout Afghanistan, Phillips said.
– Richard Lardner, Associated Press, June 22, 2010
The GAO report, moreover, is only the latest in a string of independent investigations that have cleared ACORN of wrongdoing since the middle of last year. ACORN itself hired a former Massachusetts Attorney General to do an internal investigation, and the District Attorney for Kings County, New York spent five months looking into ACORN operations after Congressionally-trumpeted doctored hidden-camera videos surfaced last September. The Congressional Research Service also investigated, and was unable to document any wrongdoing on ACORN’s part in a report issued to little notice during the holiday season last December.
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