Urbin Report

Thursday, September 15, 2005

Let us not forget the Air Enron Scandel...

Michelle Malkin writes:

What Air America has failed to disclose is that at least one other of its officials held a key job at Gloria Wise. Yesterday, we confirmed with Martta Rose of Rubenstein Public Relations, which is representing the Boys & Girls Club branch, that Air America's Vice President of Finance, Sinohe Terrero, worked at the inner-city charity as finance director from 2000-2002 under Cohen. Though he left Gloria Wise for Air America before the controversial loan scheme was initiated, it strains credulity to believe that Terrero was completely in the dark about what kinds of things Cohen and his former colleagues were doing.

The city Department of Investigation has undoubtedly explored these ties by now.

But somehow, Air America neglected to mention Terrero's employment with Gloria Wise in its public statements addressing the deepening scandal and the two government probes of the financial transactions between the two parties. Go figure.

So, what did Terrero know? When did he know it? Did Air America ignore his warnings and is he now paying the price? Terrero, as we first reported last week, has apparently resigned. Both Air America and Terrero have failed to return repeated calls and e-mails seeking comment, but we hear the radio network is preparing to acknowledge Terrero's departure in the midst of another cash crunch and a thicket of legal crises.

In the meantime, there's a continuing cloud over the escrow account set up by Air America's lawyers for the $875,000 owed to Gloria Wise. The liberal radio network trumpeted its long-delayed move last week to repay the loan in full, but the escrow account is controlled by Air America's lawyer and it isn't clear that the full amount was in the account when Air America made its announcement. New York City Department of Investigation spokeswoman Emily Gest confirmed this week that the agency received a statement from Air America vouching for the full $875,000--but Gest emphatically declined to say when DOI received the statement.

As we understand it, Air America continues to be in jeopardy of failing to meet its payroll--even as it hits up investors for cash to fund the Gloria Wise repayment. The Radio Equalizer reported previously on these problems here.

Maybe it's not such a bad time to be headed out the Air America door...