Fraud in Obama’s White House? AmeriCorps & Cronie Scandal Unfolds, Taxpayer Money Funds Left-wing Groups, Inspector General Fired for Uncovering Misused Funds « Frugal Café Blog Zone

Fraud in Obama’s White House? AmeriCorps & Cronie Scandal Unfolds, Taxpayer Money Funds Left-wing Groups, Inspector General Fired for Uncovering Misused Funds

Posted By Vicki McClure Davidson on June 18, 2009

Is there a cover-up going on at the White House? A boondoggle of millions of taxpayers’ dollars funding a number of Obama’s favored left-wing groups and Democrat cronies, and the highly suspicious firing of the inspector general who uncovered the alleged fraud… the investigation is just beginning.

Bring plenty of popcorn, gang… this is going to be an exciting (although lengthy) show…

Sacramento mayor Kevin Johnson, former NBA player of Phoenix Suns

Sacramento mayor Kevin Johnson, former NBA player of Phoenix Suns

President Obama and wife Michelle have abruptly changed inspectors general at AmeriCorps—this is the government-run, taxpayer-funded “community service” boondoggle, expanded in March as part of the $6 billion GIVE/SERVE Act, despite AmeriCorps’ wasteful track record.

Gerald Walpin, the AmeriCorps inspector general, was fired and replaced — for doing his job too well, it seems, Sen. Chuck Grassley of Iowa has commented. Grassley has taken an interest in investigating Walpin’s firing and the alleged illegal way it was conducted by the president.

Walpin reportedly uncovered the squandering of funds by favored contributors, educational institutions, and left-wing groups. A controversy arose between the IG and Sacramento Mayor Kevin Johnson, an Obama supporter and former NBA basketball star, and his alleged misuse of federal grants.

The U.S. attorney in Sacramento has harshly criticized IG Gerald Walpin for his investigation of Mayor Johnson and his nonprofit group, St. HOPE Academy, which received hundreds of thousands of dollars in federal grants from the Corporation for National Community Service. The corporation runs the AmeriCorps program.

From Michelle Malkin, Obama’s AmeriCrooks and cronies scandal:

President Obama promised he would end “Washington games.” But his abrupt firing of the AmeriCorps inspector general is more of the same. The brewing scandal smells like the Beltway cronyism of the Bush years. And the apparent meddling of First Lady Michelle Obama in the matter smacks of the corruption of the Clinton years.

If Obama keeps up with this “change,” we’ll be back to the Watergate era by Christmas.

Walpin, a distinguished, respected attorney with a long, ethical history, has not backed down. More potential fraud in the Obama administration is now seeing the light of day.

From the Houston Chronicle, Associated Press:

Obama said in a letter to Congress that he had lost confidence in Walpin. Neither the president nor deputy White House press secretary Josh Earnest would give details. The president must give Congress 30 days’ notice before removing Walpin, who is being suspended with pay for the 30 days. Earnest said, “The president will appoint a replacement in whom he has full confidence as the corporation carries out its important mission.”

Sen. Chuck Grassley, R-Iowa, in a letter to Obama, pointed to a law requiring that Congress be given the reasons an IG is fired. He cited a Senate report saying the requirement is designed to ensure that inspectors general are not removed for political reasons. Grassley said Walpin had identified millions of dollars in AmeriCorps funds that were wasted or misspent and “it appears he has been doing a good job.”

From Youth Today, Obama Fires CNCS Watchdog:

The inspector general (IG) of the Corporation for National and Community Service is being removed by President Barack Obama, a week after the IG questioned the eligibility of the largest and most expensive AmeriCorps program, and while the IG was contesting the “propriety” of a settlement made with a mayor for alleged misuse of AmeriCorps funds.

…Funding for the largest AmeriCorps program – the Teaching Fellows Program, run by the Research Foundation of the City University of New York – is in abeyance pending resolution of widespread problems identified in a recent audit. Although Walpin recommended that funding be curtailed and that previous funds (perhaps as much as $75 million) be repaid to the corporation, the corporation has said it will take no action on that matter.

Walpin concluded that nothing was being gained by the grants to CUNY and that the money was simply being used to subsidize an existing and funded program.

The White House maintains that the firing of Walpin is routine, that his removal was not connected to his troubling findings and whistle blowing, but was a “routine change that came with a change in administrations.” However, historically, those routine changes of an inspector general are rarely announced or characterized as “removal.”

From Michelle Malkin today:

We now have the White House in full Chicago thug mode — maligning fired AmeriCorps inspector general Gerald Walpin as “confused” and “disoriented.” Yep, that was the response after Democrat Sen. Claire McCaskill weighed in and pronounced herself unsatistifed with Obama’s “loss of confidence” rationale.

Implying that Walpin has lost his marbles is desperate and lame. Walpin has been consistently lucid and laser-sharp in every TV and radio interview I’ve seen or heard — including on the Laura Ingraham show yesterday, where he noted that evidence in the Sacramento mayor/NBA star/Obama crony Kevin Johnson case was destroyed.

Far from being “confused” and “disoriented,” Walpin is clear as day. Anyone who actually reads through his audits and investigative reports knows that. You can, should, and must read Walpin’s reports both on CUNY funding abuse and on the Johnson scandal here.

I also continue to hammer at the Michelle Obama angle. Her vested interest in propping up the government-subsidized volunteer industry stretches back to her days leading the Chicago non-profit Public AlliesAnd we can’t forget her days working to promote national service — and to set up cozy public chat forums with her husband and Weather Underground Bill Ayers — while at the University of Chicago.

Last week, I said this reeked of the Clintons’ Travelgate. It’s much, much worse.

From Youth Today, CNCS Announces New AmeriCorps Grants:

The Corporation for National and Community Service’s announcement today of the winners of the 2009 grant competition brings the number of AmeriCorps members who should be in place by the fall to almost 88,000, corporation officials said.

The appropriation in the 2009 budget fully funds about 75,000 positions and stimulus funds added about 13,000 more positions.

The largest grant among new and recompete grantees recommended by state commissions – a total of $41.6 million in grants – is $4.66 million to the Washington State Employment Security Department for the Washington Service Corps. The largest total for a single program brand was $6.9 million that went to City Year locations in Boston ($1.76 million), Chicago (@1.1 million), Cleveland ($598,000), Louisiana ($738,000), Philadelphia ($2.3 million) and San Antonio ($403,200).

Other grants to state commissions that topped $1 million went to: Bay Area Community Resources/ BAYAC Americorps, $1.36 million; the Minnesota Literary Council for the Minnesota Reading Corps, $1.8 million; the Montana Conservation Corps, $1.5 million; and New York’s Harlem’s Children’s Zone for its Peacemaker Program, $1.35 million. City Year’s Boston headquarters received the largest new national direct grant: $3.1 million of the total $19.7 million awarded in that category…

Reported today at Hot Air, Obama has fired 2 IGs in 2 weeks, leashed another:

We are seeing a pattern, no longer just a single data point. IGs work independently to protect taxpayers from corruption and abuse from its own government agencies. A coordinated attack on IGs certainly suggests hostility to that mission, which isn’t the Hope and Change Obama promised on the campaign trail.

More reading:
The Great Illuminator: Even Claire McCaskill Calls Obama Walpin Firing Illegal
Hot Air: The Greenroom: WH attributes Walpin’s firing to dementia and How to write a NYT article on an Obama controversy and Obama playing hardball on Walpin as key Dem calls foul and Obama cronyism: Going after AmeriCorps IG on behalf of contributor; Update: A Michelle Obama connection? and Obama has fired 2 IGs in 2 weeks, leashed another and White House: We’ll cut off criticism of Porkulus
Goodtimepolitics: Probe launched in suspicious firing of inspector general
Michelle Malkin: Two disappearing acts, one tabloid circus and A Biden connection: The Amtrak IG scandal and Project Vote sues whistleblower: ObamACORN bully tactics exposed and AmeriCrooks Watch: Meddling Michelle Obama to keynote volunteerism conference
HoodaThunk?: Democrats in House vote to take money from American troops and hand it over to the IMF
Hot Air: Walpin sues for wrongful termination and Conyers’s wife cops plea to federal bribery charges — as Conyers drops probe of ACORN
Conservative Patriot HQ: More Bad News from the Most Ethical Congress Ever
Vets On The Watch: Will The Corruption Ever Stick
NEOAVATARA: Obama’s Hypocrisy On Americorps
The Sundries Shack: From Little ACORNs… and Do We Have Another Watergate on Our Hands?Katia the Conservative Dachshund: Michelle Obama meddling in Americorps??
Urbin Report: Updates on Obama’s illegal IG firing
Jim Blazsik: What? ABC Turns Programming Over to Obama – BOYCOTT ABC on JUNE 24th!
Moe Lane: Let us recap the Gerald Walpin situation.
Temple of Mut: Off to Richmond, VA! UCLA’s Accidental Diversity!
The Daily Danet: “Disoriented” and “confused” Obama relies on NYTimes to omit details in Walprin firing.
Watcher of Weasels: Agitator and Agitprop in Chief
Ed Driscoll: The Walpin Firing: That’s The Chicago Way
Riehl World View: Not Just Walpin – 3 IG Firings Being Questioned
COACHEP » Blog Archive: Obama plays hardball against Walpin
Obi’s Sister: The Walpin Cover-up
Sister Toldjah: Another IG firing, and the leashing of another
Wellsy’s World: Fired Inspector General strikes back at Obama admin smear
Fire Andrea Mitchell!: A new Inspector General scandal – Joe Biden and Amtrak’s IG and Obama broke a law he co-sponsored firing of Inspector General Gerald Walpin
Rosita the Prole: Accusing One Who Speaks the Truth of Mental Incapacity: Stop Me If You Think That You’ve Heard This One Before
Wintery Knight Blog: CRISIS! Obama fires Inspector General for investigating Democrat corruption!
Jules Crittenden: Sleepless In Dreamland
Maggie’s Farm: Thursday morning links
bRight & Early: What’s What With Walpin
Anita MonCrief: Schumer, Gutierrez and Waters Honored for Governing the “ACORN Way” at Anniversary Celebration

About the author

Vicki McClure Davidson

I'm a conservative frugalist. My priorities: Watchdogging the government, making sure our tax dollars are spent wisely, living within our budgets (at home and in Washington, DC), and adhering to our Constitution and the conservative principles upon which it was developed by our founding fathers. Also, loving God, my family, and my country. Be wise, be frugal. God bless America!

Comments

2 Responses to “Fraud in Obama’s White House? AmeriCorps & Cronie Scandal Unfolds, Taxpayer Money Funds Left-wing Groups, Inspector General Fired for Uncovering Misused Funds”

  1. Obi's Sister says:

    Thanks for the link – like the new look, too!

    Obama continues to amaze (not in a good way).