Soon afterward it was discovered that Cohen had secured part of the money used to found the network by a loan from his employer, the non-profit Gloria Wise Boys and Girls Clubs.
The Gloria Wise group was a non-profit organization, partially funded by the city of New York, which provided services for children and seniors in the Bronx.
The city suspended further funding of the agency, and Boys and Girls Clubs of America revoked the group's right to use their name, likeness or logo.
[8] By the time this was revealed, Progress Media Inc. had sold its Air America rights to Piquant LLC (in November 2004), who subsequently agreed to repay Gloria Wise $875,000 worth of the debt, as a condition of the sale.
[10] Cohen was arrested in Guam on May 26, 2008 after being indicted by a grand jury in Hawaii for theft, fraudulent use of a credit card, forgery, and money laundering.