Sun: Air America Insider 'Sickened' by Corruption
http://www.newsmax.com/archives/ic/2005/9/21/111027.shtml?et=y
A one-time top executive of the celebrated liberal radio network Air America complained earlier this year that he was "sickened" after learning that the company was being kept afloat by a corrupt $875,000 loan from a New York City Boys & Girls Club, the New York Sun reported this week.
"The notion that money left the Gloria Wise Boys & Girls Club so that Evan [Cohen] could pretend that he was investing in Air America sickened me to my core," David Goodfriend, a former Clinton administration official, said in a deposition in an unrelated civil suit against the network.
At the time - May 2004 - Mr. Cohen served as both chairman of Progress Media, the corporate entity that controlled Air America, and as developmental director for Gloria Wise. Cohen allegedly obtained the $875,000 loan from Gloria Wise with the understanding that the money would be repaid with interest.
A transcript of Goodfriend's May 16, 2005, deposition was obtained by the New York Sun, which revealed damaging excerpts on Tuesday.
Mr. Goodfriend said in the deposition, for instance, that when investors found out about the Gloria Wise loan they concluded, "I think we better just form a new company clean of any old liabilities."
Goodfriend interpreted that move to mean the Boys & Girls Club would not see their money repaid.
When news of the loan first became public in July, Air America initially insisted that it was a debt incurred by previous owners and that its new owners, Piquant LLC, had no obligation to repay the loan.
After negative publicity began to grow, however, Air America executives changed their tune, first promising to repay the loan in installments - and then finally paying off the entire principal earlier this month.
In comments that echo Goodriend's assessment of Mr. Cohen, top Air America star Al Franken complained in August that he was "a crook."
"Here's the deal," the Air America host told his audience. "The first guy who was chairman of the board of Air America - Evan Cohen - was a crook, it turns out. I mean, I guess that's the only way to put it."
http://www.newsmax.com/archives/ic/2005/9/21/111027.shtml?et=y