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Air America’s ongoing charity scandal

By Michelle Malkin  •  September 28, 2006 08:00 AM

Brian Maloney has the lowdown on flailing lib radio network Air America’s legal and financial troubles at The Radio Equalizer. The New York State Attorney General’s office has now transferred the Gloria Wise Boys and Girls Club case involving Air America to its criminal prosecutions bureau. You won’t believe who finally covered the story. Yup, the “paper of record” that has ignored the story for more than a year:

A Bronx charity will pay the city back $625,000 that had been intended for children and the elderly but was improperly lent to Air America Radio, a network known for its liberal programming and hosts like Al Franken.

The settlement, announced yesterday by the city’s Department of Investigation, is the latest but probably not the final chapter in an investigation that began last year.

The state attorney general’s office is continuing to look into the misuse of the funds, and the case has been transferred from its charities bureau to the criminal prosecutions bureau, two people close to the investigation said yesterday.

City investigators found that the charity, based in Co-op City and formerly known as the Gloria Wise Boys and Girls Club, lent $875,000 to Air America Radio. At the city’s request, the network put the money into an escrow account while the investigation continued.

Now, $625,000 will be returned to the city and $250,000 will be turned over to the charity for its operations. The $625,000 recouped by the city includes $250,000 from the Department of Youth and Community Development and the Department for the Aging that the charity misused from 2001 to 2004 and $375,000 in overpayments from the Department of Education to a nursery and kindergarten run by the charity from 1997 to 2006.

“This is a somewhat shocking case,” said the commissioner of investigation, Rose Gill Hearn, who described the circumstances as “clearly unusual.”

Uh, yeah.


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Categories: Air America, Al Franken