A Lady's Ruminations

"Jane was firm where she felt herself to be right." -Jane Austen, Pride and Prejudice

Wednesday, August 17, 2005

"Inside Air America: An Investigative Blog Report"

Goodness. Michelle Malkin and blogger Brian Maloney of The Radio Equalizer have done a huge investigative report of the Air America Scandal.

Here is the beginning of Part 1:

Inside Air America: An Investigative Blog Report
Part. 1: A Trail of Debts
By Michelle Malkin and Brian Maloney
August 17, 2005


It's not just the Gloria Wise Boys & Girls that's knocking on Air America Radio's door looking for lost money. According to court records obtained by Radio Equalizer/MichelleMalkin.com, another major creditor has been demanding that Air America pay up. The liberal radio network has refused to do so, despite a court order and scathing words from a New York judge overseeing the case. Now, the creditor--Multicultural Radio Broadcasting Inc.--has filed a new complaint, accusing Air America and Piquant LLC (Air America's current owners) of engaging in a "sham transaction" and "fraudulent conveyance" of assets in order to avoid paying its debts. (See the prescient Professor Bainbridge for corporate law background.)

The initial battle between Multicultural Radio and Air America was widely covered last year. Here's the Wikipedia summary:

Two weeks after their debut, Air America Radio was pulled off the air by the owners of two stations the network had licensed in Chicago and Santa Monica, California (near Los Angeles). This was due to a contract dispute between Air America and the station's owner, Multicultural Radio Broadcasting. Air America alleges Multicultural Radio may have sold time on their Los Angeles station to them and another party, and stopped payment on checks to them while they investigated. Multicultural Radio alleges that Air America bounced a check and owes $1 million. Air America Radio filed a complaint in New York Supreme Court, charging breach of contract and was granted an injunction to restore the network on WNTD-AM in Chicago. On April 20, the network announced the dispute had been settled, and Air America's last day of broadcast on WNTD was April 30.
Four weeks after Air America's debut, the CEO, Mark Walsh, and Dave Logan, its executive vice president for programming, left the network. One week after those departures, the chairman and vice chairman, Evan Cohen and his investment partner Rex Sorensen, also left. Some attributed Cohen's departure to investor unhappiness with how he handled the dispute with Multicultural Radio Broadcasting.

Now, here's the rest of the story the MSM has yet to report.
Click on either link to read the rest. It is certainly worth it.