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FD-350 (Rev. 5-8-81) :VMA 1IMES MIETRO FRIDAY, OCTOBER 2, 1998 SmLOn0nN (Indicate page, nameof newspaper, city and state.) Vacco Seeks the Removal 10|2198 Ofthe Apollo Theater Boara Date: Edtion: Pb3 ME7eO87u By DAVID W.CHEN nancial misconduct. Tte: eeey8urro The State Attorney General's Of- "It's strange that this is happening fice filed a lawsuit Iate yesterday this close to the election," Mr. Ran- ET A that seeks to remove Representative gel, speaking by telephone from his CnaractelHU Charles B. Rangel and several other office in Washington,said."It makes board members of the nonprofit so little sense that I don't even go or foundation that runs the Apollo Thea- into combat with him. Classification: ter, contending that the board failed Mr. Sutton did not return a tele- Submitting Office: H0B -Ny- Z06736 to manage the theater's finances re- phone'call placed to his home last sponsibly. night; and a lawyer representing the The lawsuit represents the latest Apollo Theater Foundation also did Indexing: twist of fortune for a Harlem land- not return a call. mark. In May, state officials an- Under a five-year licensing'agree- nounced that they would withhold ment, Inner City Broadcasting was $750,000 in loans and grants from the to pay the foundation $2,000 for each foundation until questions about its taping of "It's Showtime at the Apol- finances were answered. In August, lo,' or 25 percent of the show's prof- the theater's stagehands went on its, whichever was greater. Accord- strike in a squabble that state offi- ing to officials at the Empire State cials said was related to the theater's Development Corporation, the state finances. The strike was settled agency that owns the Apollo, the earlier this week. foundation's executives.'told its Since May, Dennis C. Vacco, the board that Mr. Sutton owed at least State Attorney' General, has been in- $3 million under the agreement, but vestigating whether the nonprofit it received and accepted only Apollo Theater Foundation, which $200,000 when it asked for payment. manages the state-owned theater, This, Mr. Vacco contended, was made deals that were inordinately insufficient for a nonprofit organiza- beneficial to Percy E. Sutton, the tion. According to the lawsuit, the former Manhattan Borough Presi- board failed to insure that it obtained dent, who produced shows at the all of the compensation to which it .theater. was entitled, and failed to obtain Mr. Vacco contends that there detailed financial reports from Inner were inappropriate business deal- City. The board also did not ask to ingsbetween Mr. Sutton -a close inspect Inner City's records. friend of Mr. Rangel's and the The Attorney General's suit also board that enabled Mr. Sutton's com- focused on another aspect of busi- pany, Inner City Broadcasting, to ness dealings between the foundation significantly underpay the founda- and Mr. Sutton. tion for control of the television show, After the original licensing agree- "It's Showtime at the Apollo." As a result, Mr. Vacco has called for the the Apollo" expired at the end of last removal of the entire board in order year, the foundation opened bidding on a new agreement. Two groups to examine the foundation's finances, which Mr. Vacco's office says are in were in the running - Inner City Broadcasting, and the African Herit- . utter disarray. "Unfortunately," Mr. Vacco said age Network. Both submitted bids for $i.5 million. Mr. Sutton's compa- in'a statement, "the Apollo officers 'and directors generally abdicated ny won the bid, state officials said, by .through their conduct and omissions, changing its bid to $1.6 million at the their legal responsibility to reason- last minute. As a result, the lawsuit seeks to ably, prudently, loyally, carefully and obediently,manage all of the remove six people from the founda- SEAPCHED tion's board Mr. Rangel, Arthur affairs of the foundation. As a conse- Hill, George Dalleythe Rev.William WOSXED quence, they have caused financial James, Lloyd williams and Richard harm to one of Harlem's, and one of OCT 14 1998 New York City's, greatest assets." T.Greene. The other four board members - Mr. Rangel, a Harlem Democrat, Ossie Davis, Marianne Spraggins, said last night that the theater's fi- Evelyn Cunningham and George F8I-NEW YORK nances are in good shape. He said Woody - expressed concern about that he had yet to see the complaint, the finances several months ago, Mr. but he speculated that the lawsuit was rooted more in Mr. Vacco's cam- Vacco's office said, and would be expected to form the nucleus of a paign for re-election than in any fi new board. r00/9s 0YELO,0TZ-hN=H0H