Saturday, August 20, 2005

Equal Opportunity Swindlers

If there's one thing that we've learned from the joint Brian Maloney/Michelle Malkin investigative series on Air Scamerica, it is that they aren't choosey about whom they bilk - they'll steal from anybody:

On May 20, 2005, comedian Lizz Winstead filed suit in New York, detailing a laundry list of allegations against Air America Radio parent Piquant LLC. Accusing the company of failing to pay wages, promotional fees, accrued holiday compensation and severance, Winstead is seeking $290,716, plus interest. You can download her entire complaint here.

Does the company's behavior toward her help to demonstrate a pattern of ethics and integrity lapses in its overall business dealings?

My God, does it ever.

It seems clear Winstead was utilized in dual programming and on-air roles at Air America. Published reports from early 2004 listed her in both, here and here. Mediaweek noted she'd been programmer and host, in this blurb regarding her exit. It's not known what was in her original employment agreement, or for which programming decisions Winstead may have been responsible (other than her own Unfiltered). One thing isn't in dispute: on May 24, 2004, she agreed to sign a release supplied by the company.

What exactly it was intended to cover is exceptionally confusing. Winstead believed it to be a release of monetary claims against Progress Media, so Piquant could take it over, without facing demands for unpaid compensation. But wait a second - Air America's party line is that Piquant merely purchased the assets of Progress Media, not its liabilities. Why the worries, then, about past claims being brought against the new company? [emphasis added]

The web of malfeasance thickens. In order to minimize their legal exposure on the aforementioned fraudulent conveyance, Air America Radio exposed itself somewhere else - and at the expense of their first on-air talent.

Ms. Windstead, as alluded to above, understood the release to cover her monetary claims not against Air America Radio, but against the netlet's prior owner, Progress Media. AAR, on the other hand, chose to interpret it differently; to wit, that the release nullified her employment agreement altogether, even though she continued to work for them. They subsequently also began picking and choosing which parts of her "nullified" employment agreement they would honor. Though Piquant continued to pay her annual management salary of $250k, they axed the $225k a year to which she was entitled for her on-air capacity. The latter (oh, this is just too sweet) was the wage designated by the American Federation of Television and Radio Artists - the industry's union, to which AAR failed to report those wages, meaning AFTRA was shafted for a year's worth of dues. She was also stiffed on promotional endorsements to which she was entitled for on-air spots she did for the Vermont Teddy Bear Company.

And the cherry atop the larcenous sundae? When Ms. Windstead squawked, AAR fired her ass.

Actually, I take that back - that wasn't the cherry. Or maybe it was, and this is an additional squirt of hot fudge, or maybe marshmallow sauce:

Air America's answer to her complaint (download it here) couldn't have been more bizarre. Coming from the firm of Beldock, Levine and Hoffman LLP, rather than their usual representatives at Latham & Watkins LLP, it contained strange and seemingly contradictory assertions. Weirdest of all: Air America Radio now officially denies Lizz Winstead ever served in a management capacity!

Even though they paid her only the management portion of her original employment agreement; which, if the release she signed had really nullified it, they wouldn't have had to honor at all, but since she did continue working for a year in the same dual management/on-air capacity, would seem to prima facie indicate that AAR treated it as if it was still valid.

You know this scandal is getting byzantine when it becomes all but impossible to describe its twists and turns without resort to long run-on sentences.

Ed Morrissey makes an excellent point in his latest post: just as the mind-boggling hypocrisy of supposed "compassionate" liberals stealing funds from underprivileged children and Altzheimer's patients starts becoming passe, now we behold the equally stunning spectre of supposedly pro-labor, "solidarity with the working man," "look for the union label" populists screwing over an employee and swindling her union besides.

This isn't "robbing Peter to pay Paul"; it's more like robbing Peter, Paul, and Mary to keep Judas afloat.