Posted on 09/08/2005 10:09:40 PM PDT by John Lenin
***235pm EDT: Updated with just-released statement from NYC Department of Investigations***
Yesterday, in our latest joint investigative piece on Air America and the Gloria Wise Boys and Girls Club loan scandal, Brian Maloney and I reported that "knowledgeable sources tell us the liberal radio network is contemplating how to stem the lingering bad publicity. Anticipating further negative press, the company is apparently poised to 'settle' the matter very soon."
And now...
Nine months after acknowledging the liability in a signed settlement agreement with the network's former owners, Air America Radio wired $825,000 into an escrow account for the Gloria Wise Boys & Girls Club, the New York Sun and New York Post report today.
The escrow account is controlled by Air America's lawyers. Air America says it will release the money in the account to Gloria Wise when the city Deparment of Investigations "completes its work and authorizes payment." Last month, in the wake of negative publicity over the shady deal, Air America deposited $50,000 to the account.
The Sun reports that the loans/transfers were interest-free. (Gloria Wise's money managers know a shrewd investment when they see one, eh?)
The New York Times has had no coverage of the liberal financial scandal in their backyard since its botched August 12 article, which misquoted Al Franken and attributed the quote to a city Department of Investigation transcript that the department says does not exist. The New York Daily News has not mentioned the controversy since August 11. Still no WaPo.
The Sun's Lombino, who continues to make headway in the MSM, includes a quote from Air America's CEO, Danny Goldberg regarding Al Franken's signature on the Settlement Agreement featured in our and Lombino's reports:
Yesterday, Air America's CEO, Danny Goldberg, defended Mr. Franken. He said Mr. Franken's role in the agreement "was simply to waive his own claims in order to facilitate the transaction and allow the network to survive under new ownership."
Mr. Goldberg said the portion of the agreement that listed the Gloria Wise claim of $875,000 did not apply to Mr. Franken, who was not an investor.
"Al Franken does not have and never had any responsibility for this loan," Mr. Goldberg said in a written statement. "His role at Air America was then and remains today as on-air talent."
The "just the talent" line doesn't wash. Franken was and is the public face of Air America, and by November 2004, he was well aware that previous owners Evan Cohen and Rex Sorensen had been involved in financial shenanigans that deserved nothing less than eagle-eyed scrutiny.
In case Franken needs reminding, he was the subject of a June 2004 page 1 Wall Street Journal article detailing the mess--an article that ends with Franken expressing "some gratitude" to Cohen for getting him and the network on the air despite Cohen's exaggerations.
In case Franken needs reminding, HBO broadcast a full-length documentary on said troubles.
Some Franken defenders say it's unfair to expect him to have read the November 2004 settlement agreement and paid attention to the copious debts and liabilities racked up under Cohen and Sorensen.
If Franken wants to continue arguing he was a fool who passed the buck to his lawyer, Minnesota Republicans won't stop him. And neither will we.
***
Neither Goldberg nor Franken addressed the unsubstantiated insinuations and misstatements Franken made on the air about Evan Cohen and Gloria Wise, which we documented here yesterday.
Several lawyers raise a question about whether the settlement agreement included a direct or indirect obligation to pay back the Gloria Wise loan. This is a focus of the ongoing legal dispute between Multicultural Radio Broadcasting Inc. and Air America. (See here and here.)
As for Franken, since he has expressed a "moral obligation" to do right by Gloria Wise, may we suggest perhaps a donation of some of the proceeds from his next book, The Truth (With Jokes), sure to be a New York Times best-seller, to the inner city charity and its underprivileged clients?
***
"Al Franken does not have and never had any responsibility for this loan...His role at Air America was then and remains today as on-air talent."
Well, no wonder they're going down the tubes.
"Welcome to the Al Franken show. Today, we're going to whine like babies about George W. Bush, and I'm going to talk obsessively about my book 'Lying Liars' because I can't get over how great I am. But first a word from our sponsors..."
(Static)
"Still no advertisers? Okay. Call Hillary and tell her we need more funding."
Franken was thinking of running for office, this may put him over the top with RAT voters.
What "negative publicity" is she talking about since no one is covering the story.
His official key platform issue will be "I REALLY HATE THE FOX NEWS CHANNEL!!!"
It's not as catchy as "We have nothing to fear but fear itself," but you get the idea.
What's Air America? Airline?
What did Franken know and when did he know it?
wasn't that the airline the CIA ran during Viet Nam conflict?
ROTFL! Talent????
Yeah, that's right. Mel Gibson worked there...and that drug addict.
Hey, I remember you from a thread a long, long time ago, but I can't for the life of me remember what it was.
I'm great with names, terrible with faces.
Oh, and the only talent Al Franken has is that he's really good at getting on my nerves.
bttt
the first thing they need to do is stop calling their hosts 'on-air talent'
They still on the air? Why?
I tried, but it was awful hard.
The funny thing is that whenever Franken talks publicly, he brags about how great his ratings are. He always says, "I'm killing Bill O'Reilly ratings-wise" and "Limbaugh is narrowly ahead of me." I already knew he was full of it, but that just gives undeniable proof.
I thought Air America was broke!! Where did the $825K come from? Follow the money...
The have managed to defraud some of their biggest constituents. Even Hollywood couldn't write this script.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
