I freely admit that I'm not too familiar with ACORN, so feel free to correct me/add info. What ACORN has done wrong seems to be to simply make an extremely common mistake, having an incentive system that lead to terrible behaviour. While yes, they should have been able to catch it, it again seems like an extremely common oversight on their part. Similar cases pf both mistakes include just about the entire banking systems incentives and half a million NGO projects that recieved/s government funding. So cutting them off from all future govt contracts, seems a wee bit extreeme, punish, yes, but don't make it permanent to help them learn from their mistakes.
Checking out seems not to do much.