Air America in flames?

Michelle Malkin has got the details on what could be developing scandal involving Al Franken's radio bomb Air America. Apparently they may have received hundreds of thousands of dollars in 'loans' from a group that was supposed to use the money for inner-city children. In return, the group was supposed to get favorable on-air treatment from Air America. Yuck. Doesn't really pass the sniff test, does it?

Malkin links the following from blogger Brian Maloney:

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.

The Bronx News, a local community paper, reports:

The Bronx News has learned, through informed sources, that the diversion of hundreds of thousands of dollars from the Gloria Wise Boys & Girls Club in Co-op City to the liberal Air America Radio is at the center of the city’s probe of corruption at the local club.

The money, which was reportedly paid to Air America as a loan, was supposed to be paid back with interest, two unidentified informed sources told the News. One source added that Air America officials, led by an official of the Gloria Wise Club, agreed to help the local club by publicizing its activities.

Don't hold your breath waiting for Franken and Garofalo to talk about it.