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Oct 5, 2006 3:14 pm US/Eastern
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Charge: Charity Funds Diverted To Air America
Authorities Say Money Meant For Boys And Girls Club Went To Liberal Radio Network 'Air America'
NEW YORK (CBS/AP/DOI) ―
Two former executives at a government-funded youth organization whose finances were scrutinized after it diverted money to the liberal radio network Air America were charged Thursday with misappropriating $1.2 million of the non-profit's funds.
Charles Rosen, a former executive director at the Gloria Wise Community Center, and his former assistant director, Jeffrey Aulenbach, face charges of grand larceny and obstructing governmental administration. Rosen was also charged with forgery.
New York City's Department of Investigation, which investigated the nonprofit for two years, said the men improperly took more than $290,000 from the organization for their personal use, on top of their already unusually large salaries.
The money -- described in the non-profit's books as business expenses -- went to pay for home renovations and furnishings and new cars, among other things, according to a Department of Investigation report released Thursday.
City investigators said the pair also improperly transferred $875,000 to Air America, which was co-founded by one of Gloria
Wise's executives.
At the time, the Gloria Wise center ran a school and youth programs in the Bronx, and was affiliated with the Boys & Girls Clubs of America, but most of its money came from government grants and contracts.
The public disclosure of the club's "loan" to Air America prompted heavy criticism and charges of hypocrisy from conservative
commentators in 2005.
Air America blamed the transaction on its former chairman, Evan Montvel-Cohen, who was ousted in 2004 amid questions over the validity of his investments in the network.
The radio network has since repaid the money. Under a recent agreement, the bulk of it was returned to New York City agencies. Some was returned to the Gloria Wise organization, which reorganized, took on new management and continues to operate a nursery school program.
(© 2006 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)