American Conservative Union Under Investigation for Embezzlement

CPAC host hit with scandal

By Brian Fitzpatrick|WorldNet Daily

WASHINGTON – The non-profit organization responsible for the largest annual conservative gathering in the U.S. is under investigation for embezzlement of hundreds of thousands of dollars in donor money over several years, WND has learned.

David A. Keene

The American Conservative Union, headed by David Keene and best known for its organization of the Conservative Political Action Conference each year in the nation’s capital, has been embroiled in controversies in recent years, but this one is shaking the foundations of the Washington institution.

The American Conservative Union reported to the Internal Revenue Service last month a “material diversion of the organization’s assets” totaling over $400,000. The group has an annual operating budget of about $1.5 million.

While directors have been tight-lipped about the details, sources say Keene’s ex-wife, Diana, was fired earlier this year as bookkeeper when the misappropriations were discovered.

On its 2009 tax return, signed Nov. 8, 2010, by Executive Vice President Dennis E. Whitfield, the American Conservative Union disclosed the apparent embezzlement.

“The organization became aware in May 2010 of a diversion of assets for the year [ending] December 31, 2009,” the ACU disclosed on its 990 reports filed with the IRS. “The authorities were notified and the issue is now in the hands of the assistant U.S. attorney for the Eastern District of Virginia.”

Authorities in that office responded to WND inquiries with confirmation that there have been no charges or indictments that have resulted to date.

“I’m not aware of any public documents or charges filed,” reported spokesman Peter Carr.

Whitfield refused to discuss details with WND, saying only: “The language in the 990 speaks for itself. No further comment.”

See Documents Here