posted July 30, 2005 02:56 PM            

Wednesday, July 27, 2005 12:43 p.m. EDT
Report: Air America Funding Probed

Air America has reportedly been caught up in a probe into whether funds for after-school programs for poor children in New York City have been improperly diverted.

The city's Department of Investigation is said to be examining allegations that hundreds of thousands of city dollars were illegally invested in the liberal radio network by the Gloria Wise Boys & Girls Club in the Bronx, according to a report earlier this month in the Bronx News.

"The money, which was reportedly paid to Air America as a loan, was supposed to be paid back with interest," the News said.
Evan Cohen, who resigned under fire as chairman of Air America Radio shortly after the network began in 2003, served as director of development for the Gloria Wise Club, the paper said.

Citing "published reports" on Tuesday, the New York Daily News said that Gloria Wise founder Charles Rosen "has stepped down as executive director" after allegations surfaced that he was "investing city contract funds in Air America Radio."

A source emphasized to the Bronx News, however, that Rosen never sought to profit personally from the reported loan to Air America, and instead hoped the Gloria Wise Club would benefit from the interest collected from the liberal network.

posted July 30, 2005 02:59 PM            

After first denying a relationship, the liberal radio network Air America has finally owned up to its ties to a New York City program for poor kids that was so badly mismanaged that the city withdrew funding last month.

But NewsMax.com has learned that a key part of that program, Camp Air America, is still soliciting funds on the Internet, despite the radio network's announcement that it was severing all ties to the camp's parent organization, the Gloria Wise Boys and Girls Club.

In June, city investigators found that Gloria Wise officials "approved significant inappropriate transactions and falsified documents that were submitted to various city agencies."
On Friday the bosses of lefty firebreathers Al Franken, Randi Rhodes and Mike Malloy acknowledged a past relationship with Gloria Wise, saying, "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"

That's a shift from Air America's statement issued the day before in response to questions from the New York Post's John Mainelli and Dave Seifman, which insisted there was no ongoing relationship:

"Piquant [the network's current parent company] had no involvement whatsoever with funds from the 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."

In Air America's latest version of events, however, the ties that used to bind have now been severed - including the network's relationship to Gloria Wise's Camp Air America.

"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," the network's Friday statement acknowledged. "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."

The camp didn't survive Gloria Wise's closure?

Not according to the Gloria Wise web site, which, as of Saturday afternoon, was not only still in business - it was still touting Camp Air America and soliciting donations via a mailing address, still-working phone number and handy Pay Pal link.

In fact, Gloria Wise's online outlet still hails what it describes as: "The Camp Air America Experience":

"Camp Air America is located on Lake Stahahe among the 46,000 wooded acres of Harriman State Park, just 40 miles north of New York City. The air is clean and dry. Typically the summer days are warm and the nights are cool. An ideal site for a summer camp."

Clicking through the links, supporters are invited to sponsor an array of activities by offering up donations of $35 to $750. The larger donation is supposed to pay for "a life changing week" at Camp Air America for two children of the same family.

What's more, as of Saturday afternoon, the Gloria Wise web site was still trading on its ties to Air America, explaining that morning hosts Marc Maron and Mark Riley "will be helping to raise money for Camp Air America this June and July."

Undoubtedly the folks at Air America will prevail on Gloria Wise to have any and all mentions of the network removed from its web site - hopefully sooner rather than later.

posted August 12, 2005 12:54 AM            

MEDIA MATTERS
'More heads rolling'
in Air America scam
2 additional officials from NYC charity quit after loans to liberal radio network
Posted: August 11, 2005
7:30 p.m. Eastern
WorldNetDaily.com

The Air America Radio scandal involving the alleged diversion of hundreds of thousands of dollars from a New York City charity has reportedly led to two more resignations.

The case involves the Gloria Wise Boys & Girls Club in Bronx, N.Y., where executive director Charles Rosen resigned suddenly last week.

Sources told the New York Post that acting executive director Lorraine Corva will be leaving her job Aug. 26, and that assistant executive director Jeff Aulenback also quit, effective immediately.

While a club spokesman refused to say why the two were leaving, sources told the paper the departures are "tied to the ongoing fallout from the highly unusual and possibly improper loan to Air America, as well as other dubious fiscal practices."

A member of the board at Gloria Wise said management had been "hoodwinked" by Rosen into making the "bizarre" loans of $875,000 to the liberal radio network.

"We're not commenting on anything right now because of the delicate nature of negotiations to get the money back" from Air America, said spokesman Jim Grossman.

Air America's Al Franken

The network, noted for its liberal voices including Al Franken and Janeane Garofalo, reportedly made a $50,000 repayment on the loan to an escrow account controlled by the station's lawyer.

"The [city] Department of Investigation advised Air America to repay $875,000 into an escrow account from which no money can be disbursed without our approval," DOI spokeswoman Emily Gest told the Post. "Air America has not followed that recommendation."

In addition to the DOI, New York's Attorney General Eliot Spitzer has also opened a probe into the case.

WorldNetDaily columnist Michelle Malkin has been among those covering the issue, writing "If a conservative radio network had been entangled in a scam to steal from black children to line the pockets of wealthy white con artists, Jesse Jackson and Al Sharpton would already be staging hunger strikes in protest. But both have hefty political and financial stakes in Air America's success – and the big mouths aren't about to badmouth their friends."

Meanwhile, online reports indicate the radio network is having problems meeting its payroll.

According to the Radio Equalizer, a blog published by broadcasting analyst Brian Maloney, an internal memo indicates Air America employees faced late paychecks in late July.

"They were apparently stunned to receive a last-minute notice sent at 5:09 p.m. Thursday, July 28th, indicating direct deposits would not be made Friday, as expected," Maloney states. "Written by company Vice President/Finance Sinohe Terrero, it implied the payroll processing company was to blame:

We have been advised by ADP that Direct Deposit will probably not post until Monday. We apologize for any inconvenience this may cost (sic). If you have any questions please feel free to call me.
Sinohe Terrero