Internal ACORN documents show an organization in turmoil as last year's presidential election approached, with a board torn over how to handle embezzlement by the founder's brother and growing concern that donor money and pension funds had been plundered in the insider scheme.

Minutes from a meeting ACORN held in Los Angeles last summer reveal a group then on the brink of financial collapse. "Currently owe over $800k to IRS," the minutes note. "Haven't paid medical bills of over $300k. We are essentially 'broke' nationally and lots of offices are struggling."

Some top ACORN officials tried to shield the scheme, which involved Dale Rathke, the brother of ACORN founder Wade Rathke. "Leadership has no faith in staff. Wade betrayed them," the minutes said.

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