UPDATE 8/4/05
For more on this scandal read my updates to this post
Previous:
The Corruption In Air America, Update
The Corruption In Air America, Update II
The Corruption In Air America, Update III
The Corruption In Air America, Update IV
The Corruption In Air America, Update V
END UPDATE
This should be filed under Woops!
Apparently there is a corruption probe involving the former chairman of Air America who was also on the board of a Girls & Boys Club: (via Radio Equalizer)
A Bronx congressman yesterday praised the smooth takeover of dozens of programs serving thousands of youngsters and seniors across the borough after the city yanked funding from two sponsoring agencies that have come under a cloud.
The nonprofit Gloria Wise Boys & Girls Club and its affiliate Pathways for Youth found their city contracts, running into the millions of dollars, abruptly ended last month by the city Department of Investigation…
In its initial announcement, the DOI said it was probing allegations that program officials “approved significant inappropriate transactions and falsified documents that were submitted to various city agencies.”
According to published reports, the allegations involve Charles Rosen, the founder of Gloria Wise who has stepped down as executive director, investing city contract funds in Air America Radio, the liberal talk radio network.
Evan Cohen, Air America’s former chairman, had served as Gloria Wise’s director of development.
You will remember that Cohen resigned from Air America awhile back but apparently convinced the Club leader Charles Rosen to invest a half of million dollars of the club money into Air America which was then supposed to be paid back with interest…did this happen?
The Bronx News has a bit more:
The Bronx News has learned, through informed sources, that the diversion of hundreds of thousands of dollars from the Gloria Wise Boys & Girls Club in Co-op City to the liberal Air America Radio is at the center of the city?s probe of corruption at the local club.
The money, which was reportedly paid to Air America as a loan, was supposed to be paid back with interest, two unidentified informed sources told the News. One source added that Air America officials, led by an official of the Gloria Wise Club, agreed to help the local club by publicizing its activities.
To date, no indictments have been handed down in the New York City Department of Investigation?s ongoing probe of the Gloria Wise Club?s reported transfer of funds to Air America…
…
The city?s DOI is pursuing the probe because the Gloria Wise Club depends heavily on city funding for its operations. These funds are subject to extensive audits, as are funds received through the state and federal governments.
The Co-op City-based club, which Rosen has built into an empire in the Co-op City community, reportedly has 19 contracts and at least one grant with the city, worth a total of $9.7 million.
Over the last year, Rep. Joseph Crowley has secured two major federal grants for the Gloria Wise Club, one for a day-care program for Alzheimer?s patients and their caregivers and the other for the community?s NORC program for senior citizens. The grant for the program for Alzheimer?s patients and their caregivers was for $250,000, while the grant for the NORC program was for $99,410.
In 2003, Crowley secured a $218,500 grant for a mentoring program that the Gloria Wise Club runs.
Cohen, who is reportedly at the center of the Gloria Wise probe, is a Guam-based investors who was reportedly a key principal in the start-up of Air America…
I wonder if the supposed champions (cough cough) of the downtrodden, Al Franken & Janeane Garafalo, have been exposing this corruption? Has the MSM been all over this story? I’m sure you can guess the answer to both of these questions.
They are so busy demanding Rove be fired, or constantly going on and on about the conspiracies of the Bush administration but when their own group is involved in corruption that almost sent a Boys & Girls Club packing…..nada, not a word. Disgusting.
Cohen left Air America in disgrace but the stations silence, and the silence of the MSM is the big story here to me. If this had involved a conservative station, whoa boy…look out. Hypocrisy of the tallest order.
Also, before the lefties can start screaming that Cohen was part of a evil republican conspiracy Michelle Malkin has up on her blog the contribution history of this man:
Just FYI, I’ve uploaded Charles Rosen’s campaign contribution history via Political Money Line: Download file. Cohen contributed $2,000 to the Kerry campaign in 2003. Money talks, even if Air America won’t.
Surprise surprise.
UPDATE 7/28/05 0915hrs
Michelle Malkin has an update which spells out Air America’s response to this scandel:
On MAY 24, 2004 the newly formed PIQUANT LLC acquired the principal assets of AIR AMERICA RADIO from the prior ownership entities. PIQUANT has owned and operated AIR AMERICA RADIO since that time. The company that had run AIR AMERICA RADIO till then no longer had anything to do with the network.
PIQUANT had no involvement whatsoever with funds from GLORIA WISE BOYS &GIRLS CLUB. PIQUANT neither received nor expended any of the sums that are the subject of the City’s investigation of the CLUB.
PIQUANT is not being investigated by the City, which is investigating a transaction that took place before PIQUANT existed.
Which basically tries to say that they didn’t exist as a corporation at the time of this incident…which does not explain the quid pro quo of promotions and advertising for the Club: (via Michelle Malkin)
And was there an agreement between Air America and Gloria Wise Boys & Girls Club officials to promote the latter’s activities as part of the loan deal? Apropos that last question, take a look here at an Air America host promoting and soliciting donations for the summer camp run by the Gloria Wise Boys & Girls club. The date of this promotion was June 14, 2005. Several sources tell me the possible quid pro quo involved here should be of special interest to the FCC
This is sure to get more interesting before this is over.
Brian at The Radio Equalizer has a few questions for Air America:
-Since the company isn’t denying it received at least $480,000 in taxpayer funds meant for a Bronx community center, why doesn’t it feel the need to repay the money, simply because of a network ownership change?
-If any of the money was repaid, why won’t they tell us? Some radio talk hosts have begun on-air campaigns to demand it be returned
-Why did Air America’s response to our reporting leave out so many important details? The deflection of blame was unfortunate enough, worse was the refusal to address so many questions. What do they have to hide?
-Did any of Air America’s talk show hosts address the controversy on Wednesday or Thursday’s shows? If not, then their Bush-bashing credibility is forever shot.
-How can they talk about ethics, integrity, or scandal, when the biggest one originated in their offices?
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