What's Worse Than Taking Candy From Babies?...

..Air America taking money from children. $480,000 to be exact.  Yes, Air America and the gang over there are under investigation for diverting governmental grant funds earmarked for the Bronx-based Gloria Wise Boys and Girls Club. 

Sorry kids, guess you'll have to make due with deflated soccer balls.

It seems that Evan Cohen, former CEO of Air America and also a member of the board of the Gloria Wise Boys and Girls club managed to talk the board as well as Charles Rosen, a community activist, into investing close to $500,000 into the upstart of Air America.

Air America was supposed to repay the "loan" with interest.  But it seems to be unclear whether that repayment has taken place.  Brian Malony has a great post on the situation.

What's so obvious about this whole thing is that nobody is talking about it in the media.  I mean nobody.  When the New York Daily News published an article about the Gloria Wise club getting funding yanked, they conveniently left Air America out of the picture.  Where is the New York Times?

If this had been Rush or Sean Hannity or Bill O'Reilly, the MSM would be all over this.  But then these guys tend to give money to children's causes, not take it.

Michelle Malkin has more.

Also check out:  La Shawn Barber

Comments

[Shari]

Yeah, where is the MSM?

[HC Steve]

I am no fan of Evan Cohen, former CEO of Air America and believe me neither is the staff of America.

That being said after reading all the posts mostly linked to each other and saying the same thing, I find they really do not say anything.

I do not know if this story is true, but lets say it is true.

The story is the Gloria Wise loaned Air America $500,000 and Air America agreed to pay back the loan with interest. Then the story states nobody knows whether Air America is paying back the loan, have paid the loan back or refused to paid back the loan. In other words, these posts could not say that Air America has or had done anything wrong.

If it is proven they received the loan and are refusing to pay it back I will write to Air America and demand that live to their agreement. Until that time this is a non-story and maybe that is why MSM has not pick up the story.

[Lisa]

HC...

Even if Air America paid the loan back, non-profit organizations that get governmental grants are NOT allowed dispurse the grant funds any way they see fit. That's a big NO NO. There are rules and regulations as to how that $$ is to be spent.

Evan Cohen, being CEO of Air America and acting as a board member of the Boys & Girls Club was in a position of conflict of interest when he solicited the other board members for the money. Not to mention misappropriation of funds.

The current investigation will show whether or not Air American repaid the funds. My guess is they haven't unless George Soruss paid it for them. I understand he has been floating their boat for a while now.

Maybe they'll change the name of the station to Air George.

[HC Steve]

Lisa

I do not know the law well enough to know if you are right or not. But I agree being CEO of Air America and acting as a board member of the Boys & Girls Club was in a position of conflict of interest.

That be said: If Evan Cohen did something shady to start Air America I would not be surprised. He was forced out for his poor management of Air America and his shady ways. The only people that hate Cohen more than the Conservatives are the Staff of Air America and its listeners. All are glad Cohen is no longer with the company.

He lied about how much money he raised for the Venture. If he illegally raised some of money too, I like said I would not be surprised.

What would surprise and disappoint me is that Air America would not repay the loan to them.

[HC Steve]

Lisa

I do not know the law well enough to know if you are right or not. But I agree being CEO of Air America and acting as a board member of the Boys & Girls Club was in a position of conflict of interest.

That be said: If Evan Cohen did something shady to start Air America I would not be surprised. He was forced out for his poor management of Air America and his shady ways. The only people that hate Cohen more than the Conservatives are the Staff of Air America and its listeners. All are glad Cohen is no longer with the company.

He lied about how much money he raised for the Venture. If he illegally raised some of money too, I like said I would not be surprised.

What would surprise and disappoint me is that Air America would not repay the loan to them.

[HC Steve]

I wrote to Air America and here was their reply:

Steve,

Thanks for writing to us and giving us a chance to fill you in. We can't address the specifics of what happened between Gloria Wise and Air America last year because that was handled by Air America's previous owners, who have been gone since last year. The company that now runs Air America is called Piquant and didn't even exist until after the Gloria Wise transaction was well in the past. We're told that Air America officials are expected to make a statement today regarding your question on repayment. And, yes, you're right, we ought to hold ourselves to at least the standards we apply to others. Thanks for doing that and for asking to hear our side.

Best,

Jonathan Larsen
Executive Producer
Morning Sedition
Air America

[HC Steve]

It seems that Air America agreed to do the right thing months ago. It is posted at their web site under press. Lisa thanks for holding my feet to the fire.

Here is Air America's Statement:

If the allegations of mismanagement and corruption at Gloria Wise Boys and Girls Club are true, it is absolutely disgraceful.

As reported in the Wall Street Journal and the HBO Documentary, Left of the Dial‚ the company that the Gloria Wise Boys & Girls Club officials gave money to, Progress Media, has been defunct since May 2004. That company was run at the time by Evan Cohen who has not had any involvement in Air America Radio since May 2004.

The current owners of Air America Radio have no obligation to Progress Media‚s business activities. We are very disturbed that Air America Radio's good name could be associated with a reduction in services for young people, which is why we agreed months ago to fully compensate the Gloria Wise Boys & Girls Club as a result of this transaction.

We at Air America Radio strongly believe in the mission of Boys and Girls Clubs to provide a safe and nurturing place for young people to learn and grow. As a result, we recently allowed the same club, Gloria Wise Boys & Girls Club, to use our name in a fundraising effort for a summer camp for children in their community.

The funding for Camp Air America was raised and collected entirely by the Gloria Wise Boys & Girls Club, and Air America promoted the camp on air and urged support for it. A link on our web site sent those interested in contributing to the camp to the Gloria Wise web site. Regrettably, the camp did not survive the closure of the Gloria Wise organization. We have offered any individuals who contributed to the camp as a result of Air America's promotion the option of a refund paid for by Air America Radio and the Club offered the alternative option of having their donation redirected to Kip's Bay Boys and Girls Club.

[Lisa]

HC...

I'm glad to see they have or are going to pay the $$ back. Again, it's my understanding that Ed Soross has been funding them for a while.

Air America's first problem was that from the beginning, their expectations for national syndication were way too high. Even Rush started out locally.