The New York Post is reporting that New York State Attorney General Eliot Spitzer is now investigating why Air America ended up with $875,000 in “loans” from a from a charity for underprivileged youth that was “almost entirely funded by government contracts and grants”:

“We are looking into it in consultation with the city’s Department of Investigation,” Spitzer spokesman Darren Dopp revealed.

The highly unusual loans to the left-wing radio network were made by the Gloria Wise Boys & Girls Club — which was visited by one of Spitzer’s investigators yesterday, officials said.

Until its downfall, Gloria Wise and an associated agency, Pathways for Youth, had grown into one of the largest social-service providers in The Bronx with an annual budget of $10 million.

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All of its city contracts were yanked once the loan to Air America was uncovered.

Gloria Wise is now struggling to stay afloat with a reduced schedule of programs.