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| Air Anti-America Rips Off the Boys Club - Updated Info |
| 2005-08-05 |
| Investigators for the city of New York are scrutinizing loans and transfers totaling more than $800,000 that went from the Gloria Wise Boys & Girls Club charity in the city to the liberal Air America Radio network and one of its founders. The company that now owns Air America blames the Boys & Girls Club charity for alleged "mismanagement and corruption," but has still agreed to reimburse the organization. Most here would agree that investing in Air America should be considered "mismanagement and corruption". Evan Cohen was supposed to be raising $30 million to finance the Air America start-up in March 2004, at the same time he was serving as the director of development for the Gloria Wise Boys and Girls Club (GWBGC) in the Bronx, N.Y. While Cohen held the simultaneous positions, he allegedly solicited and received $167,000 in loans from GWBGC for Air America and $70,000 in personal loans for claimed medical expenses. GWBGC officials also accuse Cohen of issuing Air America a $213,000 GWBGC check and a $400,000 wire transfer without their approval. Cohen could not be located for comment on the allegations. No conflict of interest here. Move along. In an undated statement posted on its website, Air America blames the fundraising scandal on "mismanagement and corruption at Gloria Wise Boys and Girls Club," and absolves itself of any responsibility for the alleged improprieties. "The company that the Gloria Wise Boys & Girls Club officials gave money to, Progress Media, has been defunct since May 2004," the Air America statement explained. "The current owners of Air America Radio have no obligation to Progress Media's business activities." Somehow, this means that Cohen never had anything to do with raising funds for Air America while he served as the Boys' Club director. See? It's clear as day. Thanks for clearing that up, AA. The original investors in Air America, except for Cohen, created a new corporation, Piquant, LLC. That company then acquired the network from the original owner. Air America's statement continues to explain that, for fear of its reputation being harmed, the network will repay the money. "We are very disturbed that Air America Radio's good name could be associated with a reduction in services for young people," the statement adds, "which is why we agreed months ago to fully compensate the Gloria Wise Boys & Girls Club as a result of this transaction." Cash only. Martta Rose, spokeswoman for the GWBGC, told Cybercast News Service that the radio network has always agreed that it would reimburse the charity, but that the terms had only recently been "hammered out." "The money will be paid back within two years," Rose said. "The first payment will be in September." Out of the goodness of our hearts, we will pay you back on our terms and whenever we feel like it. Rose acknowledged that it is "not usual" for non-profit charities to loan money to for-profit business entities. Especially when it was in the form of government grant money to begin with. On June 24, the New York City Department of Investigation (DOI) announced that it was terminating all contracts with GWBGC and its subsidiaries. "[These] determinations were based on an on-going investigation by the New York City Department of Investigation concerning allegations that, among other things, officials of Gloria Wise Boys & Girls Club approved significant inappropriate transactions and falsified documents that were submitted to various City agencies," the announcement stated. Read: Cohen is a crook. Did I mention that he was employed as a key fundraiser for Air Anti-America? Rose said that some of GWBGC's programs are continuing with alternative sources of funding. "We hope to continue those as well as become fully operational in the near future," Rose said. She could not speculate as to how long the city's investigation might last. "We are cooperating fully with the city," Rose added, "with the DOI and other city agencies." A spokesman for the DOI would not comment on or answer questions about any aspect of the ongoing investigation. According to its website, the Gloria Wise Boys & Girls Club "has been helping youth from tough Bronx neighborhoods stay out of trouble, stay in school and succeed in life," since 1977. The charity states that it serves "nearly 15,000 young people each year at 32 locations (elementary schools, middle schools, high schools, public housing facilities and community centers) in the Bronx." And how exactly does "investing" in a wacko lib radio project constitute "helping youth"? Financial records filed with the Internal Revenue Service for the 2003 tax year show that GWBGC received nearly $530,000 in private contributions and more than $ 3.7 million in taxpayer funding. The organization also received $461,000 in "donated services and use of facilities." Your tax dollars at work. Why is it that NY City is doing all the investigating? Where are the feds on this? |
| Posted by:Chris W. |
| #7 Wait a minute! That money was for retards and Alzheimer's patients.... Oh! It did get there. Never mind. |
| Posted by: Almost Anonymous2520 2005-08-05 21:37 |
| #6 Pretty much, RC. Evan Cohen is notable by his absence. |
| Posted by: eLarson 2005-08-05 17:23 |
| #5 be it as owned by Piquant LLC, or by previous owners Progressive Media Who appear, by and large, to be the same group of people. |
| Posted by: Robert Crawford 2005-08-05 16:03 |
| #4 There's some good reporting on this around the Blogosphere. Start with radioequalizer.blogspot.com. Michelle's got quite a bit on it, too. The essence is "Air America" (be it as owned by Piquant LLC, or by previous owners Progressive Media) agreed "months ago" to pay back the "loan". Statements coming from AAR say that they have been waiting for some direction from New York's DOI. DOI sez "We didn't tell you anything about waiting to repay." What I want to know is: Where is Evan Cohen? |
| Posted by: eLarson 2005-08-05 15:17 |
| #3 I would love to see Franken run for Senate. He would not win and he would bellow about fraud, its a win/win. These blowhards make way to much of themselves and they need a good election to prove just how insignificant they really are. |
| Posted by: Cyber Sarge 2005-08-05 14:21 |
| #2 Al Franken is waiting for AA to shut down so he can run for Senate. |
| Posted by: Poison Reverse 2005-08-05 13:35 |
| #1 How's about all involved in the corruption should be forced to listen to the Air America? (dun't tell Amnest Int.) Anyway, it might even bump AA listeners from like 4 to like 8. .. just a thought.. |
| Posted by: MACOFROMOC 2005-08-05 12:55 |