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Nobody was duped: Sorensen denies allegations surrounding Air America
In recent weeks Guam has received national media attention due the involvement of two local businessmen and their involvement in controversial radio project. Air America has received no shortage of attention since it announced its launch as a startup venture. The liberal talk radio network was started as a counter to what some consider an industry crowded with many conservative voices but few voices espousing liberal ideals.
Heading the project were two men with strong ties to Guam. Rex Sorensen owns Sorensen Pacific Broadcasting, which operates five radio stations on Guam and Saipan (Sorensen says his Guam broadcasting company is in no way connected to Air America). The other man is Evan Cohen who was born on Guam and operated several businesses on island before relocating to the states several years ago.
The two businessmen have received national media attention from the New York Times to the Chicago Tribune, and even from pundit sources like The Drudge Report. The similarity is that in the last month much of the coverage has not been positive. Most recently The Wall Street Journal wrote a lengthy expose entitled "Radio Daze - Inside Air America's Troubles: Optimism and Shaky Finances". The article, written by Julia Angwin and Sarah McBride describes Cohen and Sorensen as Guam-based entrepreneurs who a number of Air America's investors and executives say misled them about the company's finances.
According to the WSJ, the investors and executives thought the network had raised $30 million based on assurance they received from Cohen and Sorensen. The Journal says Cohen now concedes the company had only raised $6 million and within six weeks of the launch the Journal reports the funds had been spent and the company owed creditors $2 million. The company's finances and allegations of a poor business plan would eventually lead to Cohen's and Sorensen's resignation from the Air America, at the request of the firm's investors.
KUAM News was unable to contact Cohen who is on the mainland due to the time difference, but was able to speak with Sorensen. The local businessman declined to do an on-camera interview, but did agree to be interviewed over the phone from his office at Sorensen Pacific Broadcasting, located in the Bank of Guam Building in Hagatna. Air America's current acting CEO, David Goodfriend, is quoted in the Wall Street Journal piece as saying when the problems came to light "We realized we had been duped...Sorensen says no one was duped."
Sorensen said "Mr. Goodfriend was the company's attorney and handled all incorporation documents and other legal matters, so to say 'duped' is a little bit of stretch...he shared an apartment in New York with me when we were getting things started and when he was not staying with me, he was staying with Evan." Sorensen says $30 million dollars was raised. He says the money was pledged by investors who later backed out at the last minute.
According to Sorensen, in spite of those who backed out the company still was paying its bills, saying, "When I left there were unpaid bills but no significant bills over 60 days and those, in my understanding, would have been paid in the normal course of business." Sorensen went on to say, "It is irritating for Evan and me that the work we did is being picked apart. The larger picture is that Evan and I and others put a national radio network that is still on the air together in six months, and it is enjoying significant ratings in the markets it is playing in, so the underlying business model is sound."
Sorensen cryptically said he and Cohen still believes Air America has significant value, and that they intend to fight for it. He would comment on what actions he and Cohen intend to take, saying only he would defer that question to a later time.
It should be pointed out that KUAM maintains it is owed $20,000 by a now-defunct advertising agency previously run by Cohen. Cohen denies he owes the money.
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