Here is an excerpt from Saturday:
STATE PROBES 'KID' LOAN TO LEFTY RADIO
By DAVID SEIFMAN in New York and FREDRIC U. DICKER in Albany
August 6, 2005 -- State Attorney General Eliot Spitzer yesterday opened an investigation into the Bronx social-services agency that made $875,000 in bizarre loans to Air America radio, The Post has learned.
"We are looking into it in consultation with the city's Department of Investigation," Spitzer spokesman Darren Dopp revealed.
The highly unusual loans to the left-wing radio network were made by the Gloria Wise Boys & Girls Club — which was visited by one of Spitzer's investigators yesterday, officials said.
Dopp said Spitzer's probe is examining "the conduct of the board of [the] charitable not-for-profit organization. The question is: Was their action appropriate?"
Spitzer has jurisdiction because his office oversees charities in the state.
Hillel Valentine, a longtime member of the executive board of Gloria Wise — almost entirely funded by government contracts and grants — told The Post that "a gentleman from the Attorney General's Office" had visited the organization yesterday.
"I expect that," said Valentine, 80, a former assistant chief in the New York Transit Police Department. "That's their job. I would do the same thing myself."
He referred all other questions to a public-relations firm retained by Gloria Wise, which said it could provide no further information.
Valentine has previously said Evan Montvel Cohen, Air America's founder who was working as a $74,000-a-year development director at Gloria Wise, pushed through the loan by "conning" everyone on the board.
Cohen sold his interest in Air America to Piquant LLC, which agreed to repay the loan in installments to Gloria Wise even though it claimed no legal obligation to do so.
The first payment of $50,000 was made yesterday, and it was deposited into an escrow account controlled by Air America's lawyer.
That unsettled city investigators, who had recommended that the entire $875,000 be placed into an escrow account that no one could touch without their approval.
"Air America has not followed that recommendation," said Keith Schwam, a spokesman for the Department of Investigation.
"DOI was informed today that Air America's check for $50,000 was deposited into Air America attorney's escrow account. No provision has been made for DOI to approve disbursements from that account."
Full story: http://www.nypost.com/seven/08062005/news/regionalnews/26675.htm
STATE PROBES 'KID' LOAN TO LEFTY RADIO
By DAVID SEIFMAN in New York and FREDRIC U. DICKER in Albany
August 6, 2005 -- State Attorney General Eliot Spitzer yesterday opened an investigation into the Bronx social-services agency that made $875,000 in bizarre loans to Air America radio, The Post has learned.
"We are looking into it in consultation with the city's Department of Investigation," Spitzer spokesman Darren Dopp revealed.
The highly unusual loans to the left-wing radio network were made by the Gloria Wise Boys & Girls Club — which was visited by one of Spitzer's investigators yesterday, officials said.
Dopp said Spitzer's probe is examining "the conduct of the board of [the] charitable not-for-profit organization. The question is: Was their action appropriate?"
Spitzer has jurisdiction because his office oversees charities in the state.
Hillel Valentine, a longtime member of the executive board of Gloria Wise — almost entirely funded by government contracts and grants — told The Post that "a gentleman from the Attorney General's Office" had visited the organization yesterday.
"I expect that," said Valentine, 80, a former assistant chief in the New York Transit Police Department. "That's their job. I would do the same thing myself."
He referred all other questions to a public-relations firm retained by Gloria Wise, which said it could provide no further information.
Valentine has previously said Evan Montvel Cohen, Air America's founder who was working as a $74,000-a-year development director at Gloria Wise, pushed through the loan by "conning" everyone on the board.
Cohen sold his interest in Air America to Piquant LLC, which agreed to repay the loan in installments to Gloria Wise even though it claimed no legal obligation to do so.
The first payment of $50,000 was made yesterday, and it was deposited into an escrow account controlled by Air America's lawyer.
That unsettled city investigators, who had recommended that the entire $875,000 be placed into an escrow account that no one could touch without their approval.
"Air America has not followed that recommendation," said Keith Schwam, a spokesman for the Department of Investigation.
"DOI was informed today that Air America's check for $50,000 was deposited into Air America attorney's escrow account. No provision has been made for DOI to approve disbursements from that account."
Full story: http://www.nypost.com/seven/08062005/news/regionalnews/26675.htm
