Charity To Repay New York $625K It Loaned To Air America Radio
September 28, 2006 at 6:08 AM (PT)
The former GLORIA WISE BOYS AND GIRLS CLUB will repay NEW YORK CITY $625,000 of an $875,000 grant that the city had given the BRONX charity but was diverted to an interest-free loan to AIR AMERICA RADIO.
The radio network was forced to return the money in an escrow account after city investigators got wind of the illegal loan, and $675,000 will now go back to the city in a settlement while $250,000 will go back to the charity for operational use. City Commissioner Of Investigation ROSE GILL HEARN called the case "somewhat shocking"; the NEW YORK Attorney General's office is still investigating and has placed the case with its criminal prosecutions bureau, according to the NEW YORK TIMES.