Federal Appeals Court Rules Against ACORN

From the Associated Press:

A federal appeals court on Friday threw out a decision that had barred Congress from withholding funds from ACORN, the activist group driven to ruin by scandal and financial woes.

The ruling by the 2nd Circuit Court of Appeals in Manhattan reversed a decision by a district court judge in Brooklyn that found Congress had violated the group’s rights by punishing it without a trial.

Congress cut off ACORN’s federal funding last year in response to allegations the group engaged in voter registration fraud and embezzlement and violated the tax-exempt status of some of its affiliates by engaging in partisan political activities.

Fueling the outrage was a video that caught three employees allegedly advising a couple posing as a prostitute and her boyfriend to lie about her profession and launder her earnings.

ACORN responded with a lawsuit accusing Congress of abusing its power with what amounted to a “corporate death sentence.”

The appeals court disagreed, citing a study finding that ACORN received only 10 percent of its funding from federal sources.

“We doubt that the direct consequences of the appropriations laws temporarily precluding ACORN from federal funds were so disproportionately severe or so inappropriate as to constitute punishment,” the three-judge panel wrote.

The Center for Constitutional Rights, which argued on behalf of ACORN, said it was considering asking the appeals court to rehear the case with more judges.

Read the whole thing here.