The New York Post reports this morning on a drastic shake-up at the Gloria Wise Boys & Girls Club, the Bronx non-profit charity ensnared in smelly “loan” schemes with the liberal Air America radio network:

Just days after the executive director abruptly resigned following Post reports that the club had provided $875,000 in bizarre loans to Air America, two other top officials at the Gloria Wise Boys & Girls Club have quit.

Acting executive director Lorraine Corva — who took over after Charles Rosen suddenly resigned last week — will be leaving her job on Aug. 26, sources said.

Assistant executive director Jeff Aulenback also resigned, effective immediately, sources said.

Their departures from the embattled social-services agency are tied to the ongoing fallout from the highly unusual and possibly improper loan to Air America, as well as other dubious fiscal practices, sources said.

A spokesman for the club declined to comment on why the two were leaving…

The NY Daily News says the Kips Bay Boys & Girls Club will take over administration of one of Gloria Wise Boys & Girls Club’s affiliates, the Pathways for Youth program, which serves more than 2,500 children and seniors.

Meanwhile, the NY Post reports that Air America’s spin doctors continue to pin blame on the victimized charity for holding up repayment of the mysterious “loan” funds:

The left-wing radio network, which showcases Al Franken, last Friday 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,” said DOI spokeswoman Emily Gest.

“Air America has not followed that recommendation.”

But an Air America official told The Post yesterday that both sides had agreed to a payment plan months ago and that they were on schedule with their payments.

That was news to the Boys & Girls Club. “Air America has agreed in principle to give the money, but nothing has been finalized yet,” Grossman said yesterday.

“They haven’t agreed how and when to do it.”

The Radio Equalizer blogger Brian Maloney has transcribed Al Franken’s bizarre on-air discussion of the scandal from earlier this week and also rounds-up recent developments here.

North Carolina bloggers John in NC and Confederate Yankee are demanding answers about MSM silence from their local newspaper. As a result, Raleigh News and Observer executive editor Melanie Sill has asked the Associated Press to move a story on the scandal.

Minnesotans are on their local media’s case, too.

Mark Steyn explans why the same MSM outlets that are ignoring Air America’s financial shenanigans spilled so much ink on the liberal radio network last year:

The basic problem for AA is that it signed high-priced talent to an untested business model that never lived up to the hype. Rush and most other successful “right talk” started small and grew naturally. Air America announced it was big, CNN and the other gullible boosters took it at its word, and, when it became clear, there was simply not enough audience for what it was offering, it was inevitable that slyer minds would have to find a way to circumvent the shortfall.

Then there’s this intriguing e-mail I received last night concerning the whereabouts of the elusive former AAR/Gloria Wise official, Evan Montvel Cohen. Spread the word far and wide:

Thought you should know that Evan Cohen, believe it or not, has relocated to Hawaii and had been applying for Development Director positions at local nonprofits. I was involved as a part of an interview team in which we interviewed him a couple of months ago…

…Fortunately, we did some research on him…and eliminated him from the process. I am fearful that some unsuspecting nonprofit could hire him, so have been trying to get the word out to folks. Chances are, he has already moved out of the state. If not, hopefully, your article will help!

More to come. Stay tuned…

More blogger reax:

Leon H. at Macho Nachos examines “cracks in the armor.”

Stephen Sprueill at The Media Blog notes the AWOL MSM.

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