N.Y. Community Center Loan Investigated (Air America Scandal?)

[Cicero]

By DAVID B. CARUSO
Associated Press Writer

August 13, 2005, 9:39 AM EDT

NEW YORK -- State and city officials are investigating how $875,000 from a community center funded largely by government grants and contracts wound up in the coffers of Air America, the liberal radio network.

A spokesman for Attorney General Eliot Spitzer said his office has opened a probe into the financial dealings of the Gloria Wise Boys & Girls Club, which runs programs for poor children and senior citizens.

The center and officials at Air America Radio have acknowledged that at about the time of the network's founding in early 2004, the club made a series of loans to a company called Progress Media, which was then Air America's parent company.

Both entities have said the payments were arranged by Air America co-founder Evan Cohen, who, at the time, also was a development director at Gloria Wise.

http://www.nynewsday.com/news/nationworld/nation/wire/sns-ap-air-america-loan,0,6621927.story?coll=sns-ap-nation-headlines

Ok, all the right wing blogs have gotten their panties in a twist over this story. I've been coming here for several days wanting to see if there is anyone posting anything refuting the charges, but so far nothing. Now its come out in an AP story.

Is there really anything to this, or have the right-wingers made a mountain out of a molehill here?

Later,

[Maat]

1. To me, Evan Cohen was NOT a "founder;"

he was a hired executive. He made some BAD decisions.

The current 'Air America,' a different incarnation, is being good about this, and settling the debt.

The rightwing needs to LET IT GO.

[benburch]

3. I personally know one of the founders...

And nothing like this would have been permitted had the board known about it. If it happened, it was Evan Cohen's problem, not AAR's.

[Maat]

8. Thanks, Ben.

I don't even think that Evan was a progressive, was he? I'll check.

[Julius Civitatus]

17. Evan Cohen behaved like a con-artist, and almost ruins AAR

Literally. The guy is bad news. This is the SECOND TIME his shady dealings get AAR in trouble. No wonder they fired his ass within months of the station's opening. Some of the AAR on-air personalities refer to him as a con-artist.

[benburch]

2. A mountain out of a ditch more like.

If somebody did something wrong, it was not AAR's doing nor did they know about it.

Rather like blaming the charities that got the $150,000 donation that The Governator did not report. Not their fault, HIS fault.

[Union Thug]

4. scandal for AAR? Hardly.

My understanding is that this group was trying to defraud AAR. AAR hosts asked for donations from listeners for a group that claimed they were using it to help needy kids.

Since finding out they were being jacked, AAR has aired announcements saying that they will either return the donations or send them to a charity of the donor's choice.

Not sure this is a scandal for AAR...More of a minor embarassment.

[Catamount]

5. "They'll" do anything to bring AA down!

[benburch]

7. Can't be done.

And even if they were to have to pay back the million bucks, assuming they ever got it, they have the money to do it no problem.

AAR is a "going concern."

[papau]

6. One more time-the facts are below - I would call this a molehill as to Air

America - and I would call it a possible crime as to Evan Cohen and the directors of the Gloria Wise Boys & Girls Club.


http://www.airamericaradio.com/

http://www.airamericaradio.com/press

http://www.airamericaradio.com/press/gloriawise

STATEMENT FROM AIR AMERICA RADIO
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.

[koopie57]

9. I wonder how many new listeners

air america radio will have due to this story?

[Judi Lynn]

15. No doubt it COULD arouse curiosity, and win some listeners.

On edit:

I'm including, at no cost, an illustration of Evan Cohen. DU'ers will recognize his image from the Air American documentary.



I may remember incorrectly, but didn't it come across they were NOT happy with him at ALL in that film?

[SleeplessinSoCal]

10. Let Eliot Spitzer air this thing......

And maybe Evan Cohen will finally get his due.

[Judi Lynn]

11. How many times WILL some people start threads about Evan Cohen?

NNguyenMD (832 posts) Sun Aug-07-05 09:01 PM
Original message
Anyone know if there's any truth to this Gloria Wise/Air America loan?
Judging from the fact that the ONLY people covering this story are the likes of Newsmax, Washington Times, and GOPUSA, I'm guessing there's little truth to it, but there are idiots posting on Eliot Spitzer's blog calling for him to investigate this.
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=4282771

ecoalex (368 posts) Sat Aug-06-05 12:26 PM
Original message
Could someone address Air America Radio's scandel, loss of advertisers?
I wrote AAR, but no reply.Supposedly $800,000 in Fed. grant $$ found it's way into the AAR coffers, and an investigation is underway by the State of NY. Also advertisers are dropping off, a good thing, too many ads.Any information would be appreciated, the righties are licking their chops with glee. Well we did when oxycontin rush got his.Is AAR on the way out? It shone so brightly, like Dean, only to fall metorically as well? I hope not.
Another Stolen Election
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=4274284

XOKCowboy (377 posts) Wed Aug-03-05 11:06 PM
Original message
"Air America To Go Off The Air..."
Edited on Wed Aug-03-05 11:26 PM by XOKCowboy

A RW'er that I work with came in to work this morning and said "Well I'm sorry but it looks like AAR will be going off the air soon." I laughed and told him that he said that since the first day they came on the air and he said that this time it was true. He'd heard it on "the business report". Wouldn't say WHICH "business report" but knowing him it was either Fox News or someone on RW radio. He said that the "Liberal Millionaires who'd been pumping money into it" were tired of losing money and were going to dump it. I reminded him that it was gaining market share in many if not most markets and he pooh poohed that and said that it had been constantly losing market share from the report he'd heard.
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=4255676


Triana (1000+ posts) Thu Aug-04-05 02:12 AM
Original message
Moonie Times Smears Air America
Sorry if this has already been posted. A search didn't turn up the article unless it's archived. I didn't search archives.
http://www.washingtontimes.com/op-ed/20050728-081354-1414r.htm
One reichwingnut I know has been crowing about this tonight, insisting that AA is corrupt as Halliburton or Enron. Of course IF any of this is at all true (consider the SOURCE - Murdoch) it PALES in comparison to Enron or Halliburton.
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=4256623

quaoar (1000+ posts) Wed Aug-03-05 11:34 PM
Original message
RW blogs going apeshit over Air America 'scandal'
Led by Michelle Malkin, they are in hyperdrive claiming that Air America stole money intended for poor children.

Naturally, it is overblown BS. But you have to dig to find the truth of it because there isn't much in the way of response. Mostly a brief statement from Air America and an article a few days ago in the NY Sun.
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=4255885

AngryAmish (1000+ posts) Tue Aug-02-05 01:52 PM
Original message
Air America -- Did I hear pigboy correctly?
I was in a clients car a few hours ago and she listens to assbough. He said Air America has stolen a bunch of money from a charity in New York or something like that. What is the real story?
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=4243303

zaj (897 posts) Wed Jul-27-05 10:56 PM
Original message
What's the deal with this Air America Radio "scandal"?
Edited on Wed Jul-27-05 11:00 PM by zaj

Anyone know what's going on here?
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=4207552

Darkhawk32 (789 posts) Wed Jul-27-05 11:10 AM
Original message
Did B&G Club money get Diverted to Air America? I hope not.....
Edited on Wed Jul-27-05 12:02 PM by Darkhawk32

Did Cohen improperly divert $500,000 from a Boys & Girls Club to finance AAR? Is there anybody with any other information other than these two articles?
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=4202385

[Cicero]

12. OK, I guess I didn't dig down deep enough around here.

Mea culpa. I will say, the times I have looked, I haven't seen anything. I noticed some of those other threads kind of petered out after just a few posts. I notice all the threads you've posted are archived, and like another person said in one of those threads, I did not search the archives. Again, mea culpa.

Still, I would think this would get a bit more of a sustained effort around here to refute the charges. Oh well.

Later,

[Judi Lynn]

13. It would appear no one seems to be concerned it's a threat to Air America

The subject was examined exhaustively early on, as revealed in the many, many posts.


On edit:

May I recommend reading post #8 by ConsAreLiars in the first thread?

8. See Wikipedia: The alleged swindler is a Republican operative
Edited on Sun Aug-07-05 09:36 PM by ConsAreLiars

who first bought the rights to Air America and was kicked out after five weeks who seems to have swindled a lot of people. These charges involve Evan Cohen, not Air America. See the Wikipedia article section on "Early start-up difficulties" for more about the early days: http://en.wikipedia.org/wiki/Air_America_Radio

"Air America was started as part of Progress Media, which said it had amassed $30 million in venture capital prior to its debut, a claim which later turned out to be untrue (only $6 million was initially collected). Two individuals from Guam, Rex Sorensen and Evan Montvel Cohen, were involved in raising the capital but denied any wrongdoing. <1> Cohen had an unusual history for his position in a progressive-left radio network since he was a Republican political operative in Guam and former chief of staff for Republican Governor Tommy Tanaka. <2> Cohen dismissed concerns by saying he was a committed "progressive" and that Republicans in Guam "are left of Paul Wellstone." It was reported that Cohen had unpaid business debts in Guam, although Cohen denies this. <3> Tommy Tanaka pleaded guilty to corruption charges in 2003."

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=4282771#4282914

~~~~~~~~~~~~~~~~~~~~~

Doesn't make so much sense to keep discussing a subject which has already been discussed. Eventually boredom would set in.

[NYC]

16. I hadn't seen this information before,

and I don't listen to the radio, so I appreciate your post.

[Coastie for Truth]

14. Up date in New York Times -"Bronx Boys Club's Finances Investigated"

<edit><
Jim Grossman, a spokesman for Gloria Wise, said the club had given Air America about $875,000, though he added that he did not know exactly how, or in what form, it had been given. He also said the club and the network had reached an agreement under which the money had been placed in escrow and would eventually be repaid to the club.

According to a statement posted last month on the network's Web site, the current owners of Air America, Piquant LLC, criticized "the allegations of mismanagement and corruption" at Gloria Wise as "disgraceful," but said Piquant was not responsible for the loans because they had been given to the radio network under the leadership of its previous owner, Progress Media.

"The current owners of Air America Radio have no obligation to Progress Media's business activities," the statement read. "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 and Girls Club as a result of this transaction."

Jaime Horn, a spokeswoman for Air America, said the loans had come to the network through its former chairman, Evan M. Cohen, a venture capitalist, who resigned from Air America in May 2004 under pressure from other company investors. Ms. Horn added that investigators recently told the network that Mr. Cohen had served simultaneously as the development director for Gloria Wise, although the network was not aware of that at the time.
<edit><

Note that three top officials at Gloria Wise have either quit or announced their resignations in the last few weeks.

Charles Rosen, the club's longtime executive director.

Jeff Aulenbach, a deputy executive director.

Lorraine Corva, has announced that she will be leaving at the end of the month.

This looks like a deal between Wise and Progress - with Piquant and AAR out of the loan transactions.