The network was financially troubled, however. A scandal involving nearly $1 million in loans from a Boys & Girls Club in New York secretly transacted by Evan Cohen came out in 2005 and was a source of negative publicity. The loans were repaid, but in October 2006, mounting debts forced Air America Radio to file Chapter 11 bankruptcy. The company was bought by New York real estate investor Stephen L. Green and his brother Mark J. Green, who purchased the network in March 2007 for US$4.25 million.