Posted on 08/05/2005 9:44:32 AM PDT by Tumbleweed_Connection
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.
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.
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."
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."
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."
Rose acknowledged that it is "not usual" for non-profit charities to loan money to for-profit business entities.
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.
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."
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."
There recently was a special on HBO about the founding of Air America and how it was done.
They never mentioned the graft given to them.
Since when do crooks get to pay back their ill-gotten gains on the installment plan?
Paging Eliot Spitzer...
Paying the money back does not absolve them of a crime. Throw the book at them.
Has the Slimes ever published anything about the U.N. Oil for Food Program. I'm serious, I haven't read the Slimes in 15 years.
They are going to pay back the money Air America used not because they owe it, but because they are worried about their 'good name'. What a bunch of pantloads.
Air America used the money, they need to pay it back. Claiming the old LLC went defunct and they are off the hook paying back the kidsd is bs.
Weren't these federal funds that have been "loaned" to ErrorAmerica? Why isn't Gonzales getting the JD involved?
Sounds like it's worth about 5 years in the slammer to me.
> The company that now owns Air America blames
> the Boys & Girls Club charity ...
Blame the victim. That sure helps AA's credibility.
Here are the questions they need to answer:
http://michellemalkin.com/archives/003179.htm
yup , Eliot Spitzer has a statement,and hopes his office can put it out soon , "Mr. Evan Cohen,the DEAD GUY , DID IT!!"
Does GWBGC have the authority to become a lending institution by using the tax payers' money?
"Financial records filed with the Internal Revenue Service for the 2003 tax year show that GWBGC received... ...more than $ 3.7 million in taxpayer funding."
How can this have escaped our attention for so long? GWBGC starts with GWB!
IT'S BUSH'S FAULT!
Talk about the pot calling the kettle black.
One can only wonder what happens to the money granted to the National Endowment to the Arts?
I don't give to charities unless I know what they stand for. Salvation Army, Rescue Mission, 700 Club, Fellowship of Christians and Jews, etc. are the ones I trust the most.
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