Posted on 08/01/2005 12:19:33 PM PDT by prairiebreeze
The New York Sun takes on the Air America story today and advances it by leaps and bounds, talking with the president of the non-profit which had its money taken by Air America founder Evan Cohen. It turns out that Cohen didn't just get money for the netlet, but also managed to get plenty for his own pockets as well while sitting on the Gloria Wise Boys & Girls Club board:
Initially, members of the executive committee viewed Mr. Cohen fondly because he had thrown a tremendously successful fund-raising affair for Gloria Wise in Manhattan last year. They recalled being impressed by the wealthy clientele and the large sums of money he raised, according to Ms. Graves. Because of that confidence in Mr. Cohen, she said, the executive committee approved two loans to Air America, one for $80,000 and another for $87,000.
Ms. Capell said she had met Mr. Cohen several times.
"He was very suave, a very wonderful young man. He left a very favorable impression," she said in a telephone interview.
After the initial two loans, Ms. Graves said that just before the launch of Air America her organization lent the network another $213,000, authorized with a rubber stamp of her signature on a document she said she never saw. More recently, Ms. Graves said, Gloria Wise made a wire transfer of at least $400,000 to Air America without her knowledge.
In addition, according to Ms. Graves, the longtime executive director of Gloria Wise, Charles Rosen, later told the board he had lent an additional $35,000 of the organization's funds to Mr. Cohen for medical expenses. According to Ms. Capell, the board member, Mr. Cohen told Mr. Rosen he needed $25,000 to pay for chemotherapy. Mr. Cohen told associates that he recovered from brain cancer, according to Ms. Capell. Later, Mr. Cohen asked for $10,000 - which he was lent - be cause his father, a businessman in Asia, was "gravely ill," Ms. Capell said.
Ms. Graves said that she knew of the personal loans to Mr. Cohen, but that she thought they were taken from Mr. Rosen's personal discretionary budget, "not the agency's."
Now we have potential wire fraud, forgery, and fraud by deception, and probably a host of other potential charges against Mr. Cohen for his actions with Gloria Wise and Air America. Ms. Graves also tells the New York Sun that AA has agreed to pay back $800K over the next two years, not just the $480K originally noted by the Bronx News. Fortunately, Gloria Wise remained solvent, despite the wording in Piquant Media's earlier statements which tended to suggest otherwise.
Clearly, though, AA did not pay a dime back before this investigation broke open. Nor did they agree to pay back the illegal transfers immediately, which again underscores their fragile economic status. They still have to meet that payroll, including that of their stars, who apparently don't mind taking their money ahead of what's owed to the poor kids, elderly, and Alzheimers patients served by Gloria Wise.
Michelle Malkin and Brian Maloney have plenty more on this story, including lots of links to past and present indicators of AA's precarious position. The New York Post also has started to cover the issue, which should garner even more national attention.
One certainty has arisen: this is no "phony" story. Air America had better get out in front of this, and its supporters should stop blaming the blogs for AA's miscreancy and demand that AA resolve the issue forthwith. Two years of dragging out payments for stolen money means two years and more of albatross-dragging for an enterprise that cannot afford any more baggage than it already has.
Ummmm .. someone is some really big trouble
Last I heard .. this was against the law
As I suggested in another thread, Air America's lawyer may have told them that if they brought that argument into court, they would lose. It seems that Piquant LLC (the new owner of Air America) is simply Progress Media under a new name. It's not that easy to shake off your debts.
Evan Montvel Cohen (born 1966) is a former resident of Guam who gained national notariety when he and his partner Rex Sorensen founded Air America Radio.
In mid 2004, Cohen became involved in the Air America radio network concept through a meeting arranged by David Goodfriend, a former Clinton aide and Beloit College classmate of Cohen. Goodfriend intoduced Cohen to Anita and Sheldon Drobny, a wealthy Chicago couple who had conceived the idea of starting a progressive talk radio network. Shortly thereafter Cohen and Rex Sorensen created Progress Media, Inc., which was the parent company for Air America Radio. Rex Sorensen is the the founder of Sorensen Pacific Broadcasting Inc., a network of five radio stations in Guam and Saipan.
Sorensen Pacific Broadcasting, Inc.
Chief Executive Officer:
Rex Sorensen
Rex Sorensen, a business partner of Cohen's who was the chairman of Progress Media, the parent company of Air America.
Rex Sorensen Vice-Chairman, Air America Radio Chairman, Progress Media Inc.
Beginning in the mid-1980s, Rex began acquiring and managing radio stations throughout the Pacific. He currently is the Chairman of the Board of Sorensen Pacific Broadcasting, a group of five AM and FM radio stations employing 65 full-time employees and providing programming and sales consulting services to radio stations throughout Asia. Rex is also a real estate developer and investor, with investments in Hawaii, the Philippines, Saipan, and Guam. Rex is a CPA with a degree from the University of Oregon
Air America was conceived by a wealthy Chicago couple, Anita and Sheldon Drobny. Mr. Drobny is a venture capitalist and liberal activist who writes an occasional column for a Web site that has compared Republican control of Congress and the White House to the Nazis' rise to power in Germany. ....
Mr. Cohen teamed up with Mr. Sorensen, 58, a business partner and the founder of Sorensen Pacific Broadcasting Inc., a network of five radio stations in Guam and Saipan. The two men agreed to buy the concept from the Drobnys for about $1 million, according to four people familiar with the transaction. The Drobnys haven't yet been paid. Messrs. Cohen and Sorensen say payment was based on performance milestones that haven't been met. "
"Many of Air America's investors and executives say they thought the network had raised more than $30 million, based on assurances from its owners, Guam-based entrepreneurs Evan M. Cohen and Rex Sorensen. In fact, Air America had raised only $6 million, Mr. Cohen concedes. Within six weeks of the launch, those funds had been spent and the company owed creditors more than $2 million.
When the problems came to light, "we realized that we had all been duped," says David Goodfriend, the company's acting chief operating officer. Messrs. Cohen and Sorensen say they didn't mislead anyone about the company's finances. They say they planned to invest more over time but didn't because of cultural differences with other managers"
"Mr. Walsh says he asked Mr. Cohen for proof of his assets. The entrepreneur showed Mr. Walsh documents that Mr. Cohen represented as real-estate and cash holdings valued at millions of dollars, Mr. Walsh says. Mr. Cohen denies saying the assets were his alone. He says the documents combined his assets with those of Mr. Sorensen and another business partner, Brooklyn real-estate developer Charles Cara. "
"[The board] asked Messrs. Cohen and Sorensen to resign and hand over voting control of their shares to Mr. Goodfriend, according to three people familiar with the negotiations.
"After the meeting, Air America executives examined the company's finances. "When we finally gained access to the bank accounts, we realized they were empty," Mr. Saade says. Mr. Cohen denies the bank accounts were empty although he concedes there wasn't much money left."
The MSM has really taken the gloves off to go after Air America, haven't they? I count... wow--NO coverage of this on any of the Old Media stalwarts.
Interestingly, the MSM are quick to talk about how cool podcasting is because Air America is near the top of the most requested podcasts in Apple iTunes and on http://www.podcastalley.com
No matter how cruddy or out of date the Air America podcasts are, the MSM fawns over them. By contrast, I've written the WSJ, NYT, WaPo, CNET, and plenty of other MSM outlets to promote the conservative satire found on the weekly IMAO Podcast (http://www.imaopodcast.com) and have either been ignored or rejected...
Far be it from me to ask anyone to Freep Podcast Alley, but I'd like to have Freepers' opinions on our conservative comedy podcast. We're doing it for the fans and to prove that conservatives are funnier than libs.
Hear the latest IMAO audio (safe for work): http://www.imaopodcast.com/download.html
Catch up on previous episodes at:
http://www.imaopodcast.com/archives.html
If you want to send your friends a link to download the latest IMAO Podcast (extolling the virtues of WMDs), cut and paste the following text into your e-mail:
"Hi [YOUR FRIEND'S NAME],
I laughed so hard while listening to this extremely funny sound file from my favorite blog, IMAO.
http://www.imaopodcast.com/podcast/IMAO-Aug1.mp3
It's safe for work and is on the list to be categorized as a miracle by the Catholic Church.
[YOUR NAME]"
For your lefty co-workers and friends that were desperately hoping to be able to say "President Dennis Kucinich" on November 3rd of last year, you should still send them the link but with this text:
"Hello [HIPPIE],
I have been wrong all this time and have been converted to your way of thinking after hearing this podcast speaking truth to power! Listen to it on the QT and make sure the Bushitler military-industrial machine doesn't catch you!
http://www.imaopodcast.com/podcast/IMAO-Aug1.mp3
The listen to the very end to hear the totally true X-rated jokes about Haliburton and Karl Rove!
[EITHER YOUR NAME OR A FAKE NAME]"
Again, the MSM finds itself irrevelant and self serving. Oh where is CBS or The NY Slimes on this? I know, up each other's #*$@....
I believe I'm thinking of Theodore Sorensen. Thanks for all the info you've provided this thread.
LOL! Typical lib.
Nobody was duped: Sorensen denies allegations surrounding Air America
In recent weeks Guam has received national media attention due the involvement of two local businessmen and their involvement in controversial radio project. Air America has received no shortage of attention since it announced its launch as a startup venture. The liberal talk radio network was started as a counter to what some consider an industry crowded with many conservative voices but few voices espousing liberal ideals.
Heading the project were two men with strong ties to Guam. Rex Sorensen owns Sorensen Pacific Broadcasting, which operates five radio stations on Guam and Saipan (Sorensen says his Guam broadcasting company is in no way connected to Air America). The other man is Evan Cohen who was born on Guam and operated several businesses on island before relocating to the states several years ago.
The two businessmen have received national media attention from the New York Times to the Chicago Tribune, and even from pundit sources like The Drudge Report. The similarity is that in the last month much of the coverage has not been positive. Most recently The Wall Street Journal wrote a lengthy expose entitled "Radio Daze - Inside Air America's Troubles: Optimism and Shaky Finances". The article, written by Julia Angwin and Sarah McBride describes Cohen and Sorensen as Guam-based entrepreneurs who a number of Air America's investors and executives say misled them about the company's finances.
More...
http://www.kuam.com/news/10010.aspx
Can you say "perp walk"? How about "frog-march"?
:^D
Paging Eliot Spitzer...Paging Eliot Spitzer...
According to a June 19, 2004 article in the Chicago Tribune (locked in their pay archives - cached version here), the transfer of Air America Radio ownership to Piquant LLC was an inside job arranged by the co-founder of the network, multi-millionaire venture capitalist Sheldon Drobny.
The investors in Air America Radio, the liberal talk radio network that launched in March, are restructuring the company to free it of any obligations incurred by ousted chairman and founding investor Evan Cohen.
The investors, including Highland Park couple Sheldon and Anita Drobny and Air America Chief Executive Doug Kreeger, formed a new corporation, Piquant LLC. They plan to use the new entity to purchase the assets of Air America from Progress Media and RadioFree America, two related companies that own and operate the network.
"We have an asset purchase agreement we've entered into," said Norman Wain, another investor. "Progress Media and RadioFree America are selling all of their assets to Piquant."
...The purpose of the transaction is twofold: to eliminate Cohen and his partner Rex Sorensen's shares in the company, and to insulate the cash-strapped network from any debt or other obligation that Cohen may have incurred.
By his own admission Sheldon Drobny is the co-founder of Air America Radio (AAR), and the investors and owners of RadioFree America and Progress Media appear to be the same people who now own Piquant LLC (except for Cohen and Sorensen).
Remember this is what Drobny and Kreeger's company said about the matter yesterday:
"PIQUANT had no involvement whatsoever with funds from 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.
While that may be technically true, RadioFree America and Progress Media were involved with the funds and the current individuals who make up Piquant LLC (according to the Chicago Tribune) were owners or investors in those companies. They designed an asset sale and shutdown of the two companies specifically to distance the network from the liabilities of RadioFree America and Progress Media, including loans from the Gloria Wise Boy's & Girls Club.
Well, that's pretty appropriate then, because there's no bigger "hack" out there than that "whatever it is"
It actaully goes deeper than that. A NY Democrat Union Leader was on the NYSE Board and on the Board Committee that approved Grasso's compensation package. Spitzer filed suit against every member of the Committee except the RAT Union Leader.
Democrat perfidy knows no bounds! Would you happen to have a link?
If Piquant bought the assets of Air America, then where did the money it paid go?
I don't think any money changed hands because they are all the SAME PEOPLE who owned it before except for the two who were either fired or quit (according to which story one believes).
Err America. LOL!
"Now we have potential wire fraud, forgery, and fraud by deception, and probably a host of other potential charges against Mr. Cohen for his actions with Gloria Wise and Air America." I'll wait while the media doesn't report this. Although Michelle Malkin won't let it sink into obscurity.
how much more startup cash for Air America ya think has a similar background?!!!!!!
bump
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