It's about time
I was wondering when the MSM was going to pick up on it:
Loans to Franken's radio network examined
Eric Black, Star Tribune
Al Franken, the comedian, author, radio host and possible future Minnesota politician, signed a document in November that listed $875,000 in interest-free loans that a New York Boys & Girls Club made to his radio network, Air America.
Franken said Thursday that he was unaware of the loans at the time.
The loans and the Boys & Girls Club are under investigation by city and state agencies in New York. Neither Franken nor Air America are targets of the investigations.
Air America said Thursday that it had put funds into an escrow account sufficient to repay the loans if the New York Department of Investigation, which is reviewing the club's finances, completes its work and authorizes payment.
Conservative bloggers, especially Michelle Malkin, have complained that the mainstream media is ignoring the story or "Air Ameriscam" as the Twin Cities-based Powerline blog has called it. Here is some of the background of the case.
Between October 2003 and March 2004, Evan Montvel Cohen, who was simultaneously a board member for the Gloria Wise Boys & Girls Club and head of the firm that was trying to get Air America started, borrowed $875,000 from the club. Franken has called Cohen a "crook" on the air and said he didn't know whether Cohen put the club's money into Air America.
Air America launched, with Franken as its star attraction, in May 2004. Cohen was soon forced out. Franken said Cohen did not have the financial resources he had promised to get the network going and had failed to pay Franken and others their full salaries.
New investors, operating as Piquant LLC, acquired the network and still own it.
In November, the Cohen group and the Piquant group finalized the takeover with a 61-page document. Franken was not an investor in either group but signed the document to relinquish his own claim for back pay that Cohen's group owed him.
Towards the end of the document is a list of Air America liabilities, including the $875,000 claimed by the Boys & Girls Club.
Franken said he had read only portions that pertained to him and that his lawyer, who had reviewed the document, recommended he sign. "The list of other assets and liabilities did not pertain to me because I was not an investor," he said.
In a statement posted on the network's website, Danny Goldberg, CEO of Air America Radio, said: "Al Franken does not and never had any responsibility for the loan."
Franken, who has talked about a possible 2008 challenge to Sen. Norm Coleman, R-Minn., said Thursday that he hopes to be living in Minnesota by January and basing his radio show from here.
The "Al Franken Show" is broadcast in the Twin Cities from 11 a.m. to 2 p.m. on KTNF-AM-950.
(Source: Star Tribune, September 9, 2005)