Air America (radio Network) - History - Gloria Wise Controversy

Gloria Wise Controversy

Further information: Air America-Gloria Wise loan controversy

In July 2005, the Bronx News reported that the Gloria Wise Boys and Girls Club of Co-op City, a non-profit organization providing services for children and seniors in the Bronx, loaned US$480,000 to Progress Media, then owner of Air America Radio. It later turned out that there had been four separate transfers from Gloria Wise between October 2, 2003, and March 14, 2004, totalling $875,000, and that no interest was to be paid on these loans.

Since then, the city has suspended further funding of the agency, and Boys and Girls Clubs of America has revoked the group's right to use their name, likeness or logo. At the time the funds were to have been transferred, Evan Cohen, the founder and first chairman of Air America and the former chairman of the now-defunct Progress Media, was also Director of Development for Gloria Wise.

In response to this report, Air America Radio's owners at the time, Piquant LLC, issued a press release stating Piquant had "no obligation to Progress Media's business activities", and Piquant, as previously agreed, would "fully compensate" the Gloria Wise Boys & Girls Club. While Gloria Wise remains under investigation, Air America has since repaid the loan. On May 28, 2008, Cohen was arrested at Guam International Airport on a warrant from the State of Hawaii. He was indicted in that state for money laundering and stealing over $60,000 from a Honolulu-based landscaping company.