The nonprofit Gloria Wise Boys & Girls Club and its affiliate Pathways for Youth found their city contracts, running into the millions of dollars, abruptly ended last month by the city Department of Investigation...

In its initial announcement, the DOI said it was probing allegations that program officials "approved significant inappropriate transactions and falsified documents that were submitted to various city agencies."

According to published reports, the allegations involve Charles Rosen, the founder of Gloria Wise who has stepped down as executive director, investing city contract funds in Air America Radio, the liberal talk radio network.

Evan Cohen, Air America's former chairman, had served as Gloria Wise's director of development.

Malkin and Maloney point out that only a few bloggers and the alternative press have picked up on this story. The New York Times, which in the past has heaped nothing but praise on the loser liberal network, has been silent when it comes to criticism of the network. But, as Maloney points out, this little scandal is no small potatoes. We're talking half a mil in taxpayer-funded grants transferred to Air America from Gloria Wise:

It begins with former Air America CEO Evan Cohen, who resigned last year from the network after some of its more infamous early debacles. You might remember Cohen was a key part of an HBO documentary, detailing its first days.

Cohen also happened to serve on Gloria Wise's board and convinced club leader and community activist Charles Rosen to "invest" at least $480,000 in the upstart political talk network.

Rosen has recently resigned from the board, according to New York Nonprofit Press.

The money, intended as a loan to be repaid with interest, was agreed to by Rosen after being sold on the idea of stretching their grant money further, according to one account. Part of the deal included promotional consideration of Gloria Wise's activities on Air America's programs.

Now last time I checked "stretching your grant money further" by investing it would probably fall into the realm of questionable legality in the first place. But throwing it at a failing radio network and expecting them to repay it with interest sounds more like you never expected it to be repaid in the first place. And who was it that "sold (Rosen) on the idea" of pissing half a mil in city grant money down a rat hole? The implication is clearly Cohen.

For Air America's part, they denied any relationship with Rosen and the Gloria Wise Center until they couldn't deny the fact that they were listed as a sponsor of a kid's camp on the Gloria Wise web site. So, since they couldn't deny that they had ties to Gloria Wise, they issued this "clarification"which is more of a denial:

As reported in the Wall Street Journal and the HBO Documentary, Left of the Dial‚ the company that the Gloria Wise Boys & Girls Club officials gave money to, Progress Media, has been defunct since May 2004. That company was run at the time by Evan Cohen who has not had any involvement in Air America Radio since May 2004.

The current owners of Air America Radio have no obligation to Progress Media's business activities. We are very disturbed that Air America Radio's good name could be associated with a reduction in services for young people, which is why we agreed months ago to fully compensate the Gloria Wise Boys & Girls Club as a result of this transaction.

Kind of sounds like Piquant LLC, the foolish company that bought this failing liberal radio network, is trying to make the case that they don't have any obligation to pay back the money, but they'll be nice guys about it and pay it back "for the children". Now I've heard liberals and liberal organizations give some pretty shallow and misleading answers to questions before, but this takes the cake.

Last time I checked, companies assume the liabilities of the companies they purchase. Which means that Piquant LLC would have assumed all the liabilities associated with Air America unless there was some other agreement. Since Progress Media went belly up after they ditched Air America, either Gloria Wise would be a party to the bankruptcy to get their $500 grand in grant money back or Piquant assumed the liability as the new owner of Air America. Since it clearly isn't legal to "loan" grant money, one can only assume that there was no paper trail on this funny money transaction. And it's not a far leap from there to assume that there was never any intention of paying back the money. Which sounds to me like Air America got caught stealing the money and had to pretend like it was going to be good corporate citizen when the intent was actually crooked as hell. How very liberal of them!

Fortunately, interest in this story seems to be catching on regardless of whether the New York Times is ignoring it or not. The story was the subject of a Washington Times editorial today and NewsMax.com is covering the story as well. You can bet that if a conservative radio network were accused of stealing from children and senior programs, the New York Times and every other liberal media outlet would be all over it. And there is definitely sweet irony in the fact that liberals, who routinely accuse conservatives of robbing kids and seniors via tax cuts are actually the ones who are stealing from them by stealing tax money earmarked for the kiddies.

The simple fact of the matter here is that talk radio is driven by the free market, as it should be. Conservative talk radio is successful because people actually listen to it. Nobody wants to listen to trash-talking liberal radio as evidenced by the fact that Air America nearly two years after its launch has to boast about being heard on a whole 67 radio stations across the country. It's shameful that this pathetic excuse for talk radio would have to steal from kids' programs to fund its worthless existence, but it's not one bit surprising.

UPDATE:This story seems to be catching on around the blogosphere:

The New York Times still hasn't had anything to say about corruption at their favorite radio network, but the Daily Kos has issued a pathetic semi-defense of Air America, saying that the story is phony except it might not be phony.

Brian Maloney has posted an update on the "backlash" now that the liberals have decided what their spin is going to be. You can get plenty of information and coverage on this developing story by scrolling to the bottom of his original piece.

Could this be the end of the liberal radio network that only the foaming at the mouth commies really wanted and nobody else listens to? Stay tuned.