WSJ:

Last August two of Acorn's eight dissident board members, Marcel Reed and Karen Inman, filed suit demanding access to financial records of Citizens Consulting Inc., the umbrella group through which most of Acorn's money flows. Ms. Inman told a news conference this month Mr. Rathke still exercises power over CCI and Acorn against the board's wishes. Bertha Lewis, the interim head of Acorn, told me Mr. Rathke has no ties to Acorn and that the dissident board members were "obsessed" and "confused."

According to public records, the IRS filed three tax liens totaling almost $1 million against Acorn this spring. Also this spring, CCI was paid $832,000 by the Obama campaign for get-out-the-vote efforts in key primary states. In filings with the Federal Election Commission, the Obama campaign listed the payments as "staging, sound, lighting," only correcting the filings after the Pittsburgh Tribune-Review revealed their true nature.

"Acorn needs a full forensic audit," Ms. MonCrief says, though she doesn't think that's likely. "Everyone wants to paper things over until later," she says. "But it may be too late to reform Acorn then." She strongly supports Barack Obama and hopes his allies can be helpful in cleaning up the group "after the heat of the election is gone."

Acorn's Mr. Kettering says the GOP lawsuit "is designed to suppress legitimate voters," and he says Ms. MonCrief isn't credible, given that she was fired for cause. Ms. MonCrief admits that she left after she began paying back some $3,000 in personal expenses she charged on an Acorn credit card. "I was very sorry, and I was paying it back," she says, but "suddenly Acorn decided that . . . I had to go. Since then I have gotten warnings to 'back off' from people at Acorn."

Acorn insists it operates with strict quality controls, turning in, as required by law, all registration forms "even if the name on them was Donald Duck," as Wade Rathke told me two years ago. Acorn whistleblowers tell a different story.

"There's no quality control on purpose, no checks and balances," says Nate Toler, who worked until 2006 as the head organizer of an Acorn campaign against Wal-Mart in California. And Ms. MonCrief says it is longstanding practice to blame bogus registrations on lower-level employees who then often face criminal charges, a practice she says Acorn internally calls "throwing folks under the bus."