Save the Egyptian Theatre; Just Say No to Netflix

Sign the petition - Spread the word!

Sid Grauman, Doug Fairbanks & Mary Pickford's dog Zorro are all howling
at the thought that a for-profit behemoth - Netflix - is threatening
to purchase the publicly-owned Egyptian Theatre,
doing whatever they want with it, with the profits going to.....???!!!??

We - the public & members of American Cinematheque --
don't know who will profit from the sale of the publicly-owned Egyptian Theatre.

The Board of Directors of American Cinematheque, the legally-responsible parties (but not the owners) are refusing to discuss this matter with the dues-paying membership that support American Cinematheque, keep those Board Members occupied, and keep the doors of the Egyptian Theatre open to the Public.

Here is an outline of the facts facing the proposed sale of the historic Egyptian Theatre to any privately held company.

These FACTS create insurmountable issues that preclude a sale to any for-profit company
whose primary mission is not to serve the public, but their stockholders
:

1. American Cinematheque states on its website, The American Cinematheque at the Egyptian & Aero Theatres, is a 501 (C) 3 non-profit organization.

2. According to the California State Attorney General's Guide For Charities:

Is Our Organization a Charity?

Many people contact the Attorney General's Registry of Charitable Trusts to ask if their organization in California is a charity. If the organization is classified as a California nonprofit public benefit corporation5 or has received federal tax exemption under Internal Revenue Code section 501(c)(3), it is considered a charity.

3. According to attorney Mollie Cullinane's column, Who Owns a Nonprofit? comes the obvious answer:

No one person or group of people can own a nonprofit organization....

[If no one person or group owns a nonprofit] To whom is the the nonprofit accountable?

The organization is accountable to many constituencies.

The General Public. Nonprofits are created to provide a charitable purpose to the public good, whether as charities, educational programs, churches or religious groups, or scientific or artistic organizations.

State Agencies. Nonprofits must also comply with certain regulations in the states in which they operate. These may also require public disclosure of specific documents or the filing of certain reports.

The IRS. Certain tax-exempt entities follow rules set by the IRS to keep their tax-exempt status.

Can a nonprofit be sold?

No. A nonprofit cannot be sold to another individual or organization. Additionally, the assets acquired by a nonprofit were acquired with the understanding that they will be used to further the mission of that organization. If a nonprofit decides to cease operations, the organization must settle all debts and distribute all of the nonprofit's remaining assets to another nonprofit corporation before it can be dissolved.

4. In 1996, following damage to the Egyptian Theatre caused by the 1994 Northridge Earthquake, the Egyptian was sold by the Community Redevelopment Agency of the City of Los Angeles for $1 to the nonprofit American Cinematheque. In return, American Cinematheque received $9.5 million financing deal that included $2 million in federal earthquake repair loans, a $3 million grant from insurance proceeds, which was combined with American Cinematheque funds and conventional loans to restore the theater.

Had American Cinematheque not stepped forward in 1996 with the desire to revive a falling-down building in what was then a crummy part of town, the Egyptian Theatre would have closed back then. In accepting public monies to restore the theatre, nonprofit American Cinematheque forever dedicated The Egyptian Theatre as a publicly-owned entity, with ownership to be held by the public, not any private corporation.

Sign the petition - Save the Egyptian Theatre from Netflix!

5. American Cinematheque is not only delinquent in their filings of statutorily-required non-profit paperwork with the State of California, but there is NO information about the seemingly very secretive organization, American Cinematheque, who has been granted stewardship of The Egyptian Theatre by the public and is supported financially by American Cinematheque dues-paying members. Failure to file statutorily-required paperwork for over two years shows a developing pattern of complete lack of responsible leadership on the American Cinematheque Board of Directors, as well as by their Executive Director, Barbara Zicka Smith. Prior to 2017 - all state-required paperwork was filed on time. Now, suddenly, in the last two years, the Executive Director has ceased to do the job they were previously correctly doing, and no one at the Board appears to give a rip. That's not right.

6. A member asked and was granted a list of the current Board of Directors of American Cinematheque. Here is reportedly the current Board of Directors:

American Cinematheque Board of Directors

Rick Nicita - Note: Rick is married to fellow board member Paula Wagner
Chairman

Mark Badagliacca President

Peter Bart
Bill Block
Sanford R. Climan
*Peter J. Dekom
Michael De Luca
Toby Emmerich
Jon Favreau
Brian Grazer
Dean Hallett
Charles Heaphy
Louis E. Kempinsky
Anne Keshen
*Kenneth Kleinberg
Sue Kroll
Michael Mann
*Mike Medavoy
Darren J. Moll
Eric Nebot
Mark Ordesky
James G. Robinson
Stan Rosenfield
Ted Sarandos
Paul Shurgot
Barbara Zicka Smith
Bud Swartz
Steve Tisch
Paula Wagner - Note: Paula is married to American Cinematheque's Board Chairman, Rick Nicita

*Chairman Emeriti

Sign the petition - Save the Egyptian Theatre from Netflix!

7. Innumerable Conflicts of Interest, Self-Dealing, and Insider Trading on American Cinematheque Board of Directors

Given the list of Entertainment Industry luminaries who sit on the American Cinematheque Board of Directors - Any proposed sale of the historic, culturally important theatre to a private corporation such as Netflix represents Fraud upon the Public (who own the Egyptian Theatre), Self-Dealing and Insider Trading. Starting with the most obvious Conflicts of Interest that allow the self-dealing and insider trading to occur:

Board Member Ted Sarandos is Netflix's Chief Content Officer. This outstanding relationship should not need any explanation as to why it is a massive Conflict of Interest, but spelling it out in the simplest of terms: Any member of a Board of Directors of a non-profit organization who agrees the nonprofit's sole asset should be sold off at an undisclosed price, in an undisclosed, unannounced sale - to the Board Member's employer -- is committing Fraud Upon The Public. Ted Sarandos and Netflix as a corporation should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars. What Ted Sarandos is doing in attempting a private sale of a public asset to his employer - and that is strictly ILLEGAL, even if an open sale period with open, honest bids had been conducted -- which most certainly has not happened. This is a straight-up, dishonestly-brokered, self-dealing, self-enriching, back-room, sweetheart deal that Ted Sarandos felt he had the right to take.

Board Chairman Rick Nicita, former CAA managing partner, holds many entertainment industry titles and has multiple relationships with many in Hollywood - all of which would no doubt be made easier, more harmonious and more lucrative, if Netflix were allowed to purchase the Egyptian in a sweetheart, back-room deal. What agent wouldn't want to help a production company purchase an historical theater that will showcase his clients' talents? And that's just one obvious Conflict of Interest in a complete Sea of Conflicts that Rick Nicita and his wife & fellow American Cinematheque Board Member Paula Wagner are swimming in. Both Rick Nicita & Paula Wagner should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are the Chairman of the Board and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Sign the petition - Save the Egyptian Theatre from Netflix!

Board President Mark Badagliacca, Chief Financial Officer of Paramount Pictures (oy! Paramount Pictures is running Sid Grauman's theater!! Heavens!) It's hard to imagine what Sid Grauman's reaction might have been to the news that the CFO of Paramount Pictures had a say in the running of one of Grauman's famously studio-independent theaters would have been, but suffice it to say Grauman would probably not embrace or even think very much of the idea at all.

To point out the massive conflict of interest any CFO of any studio would have in directing who owns a Public Theater is obvious, and Mark Badagliacca has a lot to answer for why he thought the sale of American Cinematheque's sole asset to a rival studio would be a great idea. No matter the motivation, it is still patently illegal - especially given the secretive manner in which the announced sale was sprung upon the unsuspecting members who were never told of any problems, issues, or anything that required raising millions of dollars. So along with Nick & Paula, Mark Badagliacca should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are the President of the Board and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Peter Bart, publicist, needs to truthfully answer how he voted on this deal. That may be difficult for him, given his reputation as arguably the most hated man in Hollywood "Bart calls himself “Zelig-like.” A setter of rules who hates to follow them, a lover of labels who resents being characterized, a seeker of the truth who doesn’t always tell it, Bart believes he is immune to the conflicts that derail lesser men." If Peter Bart voted to sell the Egyptian Theatre to Netflix, then Peter Bart should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Bill Block, CEO of Miramax, needs to answer as to how he voted on the proposed sale of America Cinematheque's sole asset to Netflix, a company that Miramax needs to be on the good side of, if Miramax wishes it's movies to have access to one of the world's largest & oldest streaming platforms. And that's just one take on why this is a massive Conflict of Interest between Bill Block, Netflix, and American Cinematheque requires investigation. If Bill Block voted to sell the Egyptian Theatre to Netflix, then Bill Block should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Sanford (Sandy) R. Climan, President of Entertainment Media Ventures, needs to answer as to how he voted on the proposed sale of America Cinematheque's sole asset to Netflix. Reading the UCLA School of Theater, Film & Television's bio page on Sandy, where he serves on UCLA's Executive Board, Entertainment Media Ventures has a "a particular focus on innovative technologies pushing forward the boundaries of media and entertainment." Sounds like another massive Conflict of Interest for Sandy Climan, American Cinematheque, and Netflix. I wonder how UCLA would feel if Sandy proposed to sell off the Hammer Theater to Amazon, for use in their Prime video screenings? UCLA might want to check out the larcenous tendencies of Sandy and his work with other nonprofits because if Sandford Climan voted to sell the Egyptian Theatre to Netflix, then Sandford Climan should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Peter J. Dekom, entertainment lawyer, is in one of those positions lawyers put themselves in: in the middle of a legal fight. Because whether a lawyers chooses the 'winning' side, or the 'losing' side - lawyers get paid. But in this case, Peter Dekom is acting a citizen, on a Board of a nonprofit, where he *might* have voted to sell off the nonprofit's sole asset to another Board Member's employee. If Peter Dekom voted to sell the Egyptian Theatre to Netflix, then Peter Dekom should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions. Even if you are an attorney -- the laws apply to attorneys, too.

Sign the petition - Save the Egyptian Theatre from Netflix!

Board Member Michael De Luca, producer, has a number of long-standing industry ties to virtually all the other Board Members, making it impossible to untangle the numerous Conflicts of Interest. If Michael De Luca voted to sell the Egyptian Theatre to Netflix, then Michael De Luca should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Toby Emmerich, Chairman of Warner Bros Pictures, has massive Conflicts of Interest. Again, Sid Grauman must be rolling in his grave over the idea of Warner Bros Pictures controlling who his long-standing independent theatre can be sold to! If Toby Emmerich voted to sell the Egyptian Theatre to Netflix, then Toby Emmerich should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Jon Favreau, actor, director, producer, and screenwriter, has multiple Conflicts of Interest with other Board Members. If Jon Favreau voted to sell the Egyptian Theatre to Netflix, then Jon Favreau should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Brian Grazer, director and actor & producer Ron Howard's partner in Imagine Entertainment, has a brand new Conflict of Interest as of today - Sept 6, 2019 - when the Hollywood Reporter announced, "Ron Howard on Friday said his film version of J.D. Vance's lauded bestseller Hillbilly Elegy for Netflix is set to get a limited theatrical release to boost its chances for awards season glory." We can only imagine how much it would help Netflix and Ron Howard and Imagine Entertainment if the Egyptian Theatre was already in Netflix's hands! Talk about a Conflict of Interest - and this is just ONE EXAMPLE out of hundreds that exist between American Cinematheque Board Members and Netflix. If Brian Grazer voted to sell the Egyptian Theatre to Netflix, then Brian Grazer should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Dean Hallett, Organizational Advisor, Leadership Facilitator, Former 20th Century Fox SR EVP + Disney EVP/CFO, shows once more, the massive Conflicts of Interest present among Hallett, American Cinematheque, and Netflix. For example, it is announced that Disney is going to start a streaming service for its movies and will remove them from Netflix. Hallett's vote - whichever way it goes - could be useful to either his former employers Disney and Fox, or to Netflix - who knows?

American Cinematheque members - who pay the dues that keep the Egyptian Theater running day-to-day -- have never been informed that the Egyptian Theatre was up for sale, that money was needed, or there were any problems whatsoever. All of this represents a massive failure of oversight - and dare we say leadership - on the American Cinematheque Board of Directors. For someone who bills himself as a leader's role model, Hallett sure left the American Cinematheque members high & dry. Perhaps he only works with the monied set, not the hoi-ploi that pay the bills. Whatever the case, If Dean Hallett voted to sell the Egyptian Theatre to Netflix, then Dean Hallett should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Charles Heaphy, Senior Managing Director and Team Manager at First Republic Bank, is a banker specializing in Entertainment/Media Finance. For a banker to see a nonprofit's sole asset sold off to a fellow Board Member's private entity so that perhaps First Republic Bank finances the sale, or receives other lucrative banking contracts with Netflix for smoothing the Egyptian Theatre's sale is just sooooo.... distasteful and disgusting, not to mention immoral and illegal. That this is even a possibility shows why Charles Heaphy has no business having a say in this matter whatsoever. If Charles Heaphy voted to sell the Egyptian Theatre to Netflix, then Charles Heaphy should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Louis E. Kempinsky, entertainment attorney, is another lawyer who apparently doesn't have a problem taking the illegal side in an argument. If Louis E. Kempinsky voted to sell the Egyptian Theatre to Netflix, then Louis E. Kempinsky should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions. Even if you are an attorney -- the laws apply to attorneys, too.

Board Member Anne Keshen, Entrepreneur, investor and attorney, is another lawyer who apparently doesn't have a problem taking the illegal side in an argument. If Anne Keshen voted to sell the Egyptian Theatre to Netflix, then Anne Keshen should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions. Even if you are an attorney -- the laws apply to attorneys, too.

Board Member Kenneth Kleinberg, founding and the senior partner of Kleinberg Lange Cuddy & Carlo LLP, is another lawyer who apparently doesn't have a problem taking the illegal side in an argument. If Kenneth Kleinberg voted to sell the Egyptian Theatre to Netflix, then Kenneth Kleinberg should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions. Even if you are an attorney -- the laws apply to attorneys, too.

Sign the petition - Save the Egyptian Theatre from Netflix!

Board Member Sue Kroll, Warner Bros executive and President, Kroll & Co, again shows so many Conflicts of Interest with other Board Members and American Cinematheque, who honored the stars of Kroll's recent movie, "A Star Is Born," by giving Bradley Cooper and Amy Adams prominent awards - that no American Cinematheque member voted on - only the Board, for the paying dues members. In fact, in 2016, American Cinematheque Board of Directors awarded Sue Kroll the Sid Grauman Award - which is supposed to go to people who support Sid Grauman's vision of independent theatres screening films from any producer - not just one private corporation. Since no assurances that Netflix won't close the Egyptian Theatre if they are successful in getting their grubby paws on it have been forthcoming, it would be a ghastly occurrence if the Egyptian was shuttered & closed by the contributing vote of a recipient of founder Sid Grauman's eponymous award.

Sue Kroll has already handsomely benefited from her supposedly non-reimbursed role as an American Cinematheque Board Member. Perhaps Ms Kroll can remember the Little People who pay the way for the Egyptian Theatre to be such a gem that Kroll along with the rest of the Board, is ready to sell off to the bidder who will bring the Board Members the most Joy. Unfortunately, the law does not permit Board Members to sell nonprofit's assets off to a for-profit company. In fact, Ms Kroll and the other Board members need a refresher course on what happens when Public Money is invested in a nonprofit Public Asset. Once Public Money is invested, the asset can no longer be sold. It's sole use from that point forward, after accepting Public Money, is to be open to the public in the same capacity as it was when the Public Money was given.

If Sue Kroll voted to sell the Egyptian Theatre to Netflix, then Sue Kroll should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Michael Mann, film director, screenwriter, and producer, has deep ties to most studios, many of whose executives sit alongside Mann on the American Cinematheque Board of Directors. Any film producer must be concerned with the distribution of their products and Mann may not be in any position to oppose fellow Board Member Ted Sarandos and Netflix, and most executives will let another executive do whatever they want, so long as they are not hurt in the process. Again the probable Conflicts of Interests abound and call into Mann's ability to be impartial. If Michael Mann voted to sell the Egyptian Theatre to Netflix, then Michael Mann should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Mike Medavoy, legendary film producer, director, writer, agent is in the same position as the other producers, writers, and artists who are his fellow board members at American Cinematheque. Medavoy has deep ties to most studios, many of whose executives sit alongside Medavoy on the American Cinematheque Board of Directors. Any film producer must be concerned with the distribution of their products and Medavoy may not be in any position to oppose fellow Board Member Ted Sarandos and Netflix, and most executives will let another executive do whatever they want, so long as they are not hurt in the process. Again the probable Conflicts of Interests abound and call into Medavoy ability to be impartial. If Mike Medavoy voted to sell the Egyptian Theatre to Netflix, then Mike Medavoy should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Darren J. Moll, entrepreneur, is the least known member when attempting to track his business associations through social media. If Darren J. Moll voted to sell the Egyptian Theatre to Netflix, then Darren J. Moll should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Eric Nebot, CEO of Hill Valley, a French-American firm with an "expertise in Product Placement, Promotion and brand content in the film industry," is clearly beholden to all the studios, writers, directors, producers, bankers - just about all of his fellow American Cinematheque Board Members! So it is highly questionable that Eric Nebot could be impartial about any decision that involved so many of the industry firms his company is dependent upon. If Eric Nebot voted to sell the Egyptian Theatre to Netflix, then Eric Nebot should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions. Je crois c'est la même en France donc l'ignorance n'est pas une excuse.

Board Member Mark Ordesky, producer, again, has so many ties to so many of the other Board Members and with Netflix that it is impossible to detangle the relationships. There is no ability to be impartial in decision-making when a person's business is so intimately tied up in another's, as is Ordesky's with the film industry. The Conflicts of Interest are unending. If Mark Ordesky voted to sell the Egyptian Theatre to Netflix, then Mark Ordesky should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Sign the petition - Save the Egyptian Theatre from Netflix!

Board Member James G. Robinson, producer, has worked with fellow Board Member Michael Mann on 1992's Last of the Mohicans, and ironically had another block buster hit in 1990 with a re-make of the movie that opened the Egyptian Theatre on Oct 22, 1922 - Douglas Fairbanks in Robin Hood. Again, there are too many Conflicts of Interest for Robinson to be able to be impartial when he has millions of dollars of IP riding on a host of decisions that will be made by other American Cinematheque Board Members - decisions that have nothing to do with the Egyptian Theatre. So there is simply no way Robinson can participate in any discussion about any sale due to his conflicts of interest. If James G. Robinson voted to sell the Egyptian Theatre to Netflix, then James G. Robinson should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Stan Rosenfield, publicist, is also not in much of a position to object to anything Netflix might want, since publicists are there to do the bidding of their clients, not stand up to them. Once again, there are so many Conflicts of Interests between Rosenfield, his past & current client list, his clients' goals & aspirations, and American Cinematheque. If Stan Rosenfield voted to sell the Egyptian Theatre to Netflix, then Stan Rosenfield should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Paul Shurgot, Walt Disney Studios EVP and CFO, is in an interesting position, given the streaming platform match-up that is developing right now in 2019 between Netflix & Disney. Whatever happens to the public's ability to stream movies, the public's ability to watch movies at the Egyptian Theatre, free from any block-booking that precludes the showing of any studio's films due to theatre ownership (or management), violates the spirit with which Sid Grauman built the Egyptian Theatre and had Doug Fairbanks open it in 1922. This also illegally violates the 1996 $9.5 Million Public Money Loan to American Cinematheque to restore, maintain, run & operate the Egyptian Theatre as a Public Benefit. If Paul Shurgot voted to sell the Egyptian Theatre to Netflix, then Paul Shurgot should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Barbara Zicka Smith, Executive Director of American Cinematheque since 1992, is in a curious position as it is highly irregular to have the Executive Director of a nonprofit also sit on the Board of the same nonprofit. That's a Conflict of Interest, that precludes Smith from having any role or say in the sale of the Egyptian Theatre. In fact, because of her dual role as both paid Executive Director and (non-paid?) Board Member (are Board Members serving without pay? That is not known to general membership) Smith is in an extraordinary position that is not usually considered appropriate, and possibly is against the law, and/or the By-laws of American Cinematheque. If Barbara Zicka Smith voted to sell the Egyptian Theatre to Netflix, then Barbara Zicka Smith should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Bud Swartz, PriceWaterhouseCoopers, as an Entertainment Industry finance specialist, again has too many Conflicts of Interests with all the other Board Members to begin to try to de-tangle them all. If Bud Swartz voted to sell the Egyptian Theatre to Netflix, then Bud Swartz should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Steve Tisch, producer and Sony Pictures Entertainment executive, is another studio executive with much to gain by approving a sale of an historic theatre to a streaming studio such as Netflix. Again, there are so many Conflicts of Interest that it is impossible to decipher them, nor is it necessary to try. If Steve Tisch voted to sell the Egyptian Theatre to Netflix, then Steve Tisch should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Board Member Paula Wagner, producer and film executive, married to Board Chairman Rick Nicita, has too many Conflicts of Interest to have any say in this matter. If Paula Wagner voted to sell the Egyptian Theatre to Netflix, then Paula Wagner should be immediately charged with attempting to defraud the public out of an asset worth untold millions of dollars, because when you are a Board Member and you think it's a great idea to sell off your nonprofit's sole asset worth millions to a fellow Board Member's employer - you are committing Fraud and need to beheld accountable for your unconscionable, immoral, and yes, illegal actions.

Sign the petition - Save the Egyptian Theatre from Netflix!

This proposed sale of the Egyptian Theatre needs to be immediately dropped and the Board Members all resign, en masse. They do not represent the members of American Cinematheque and have shown themselves to only be interested in using their supposedly voluntary, non-paid Board Membership to help themselves lead better, more prosperous lives, not the Public, which is who they are supposed to be serving, when they agreed to be on the Board of Directors of a Not For Profit Corporation.

Douglas Fairbanks would have demanded nothing less from his fellow industry executives of the day, if such a large group had been found so flagrantly enriching themselves at the public's expense, all while trying to pass it off as a Good Deed. These Board Members have individually and as a group disgraced themselves with this shameless display of greed & selfishness. Know that one of the founders of this town - Douglas Fairbanks - would have made sure all resigned in disgrace and never showed their face again, so shameful are the actions of the entire Board of Directors of American Cinematheque.

I am hopeful that lots of Sunshine and the Public's examination of what exactly is going on at American Cinematheque Board and with its public asset The Egyptian Theatre, this Insider Trading, marked by Self-Dealing and Fraud will prompt the Attorney General's office to immediately cease the sale of the Egyptian Theatre and ensure the Board is removed and replaced with people willing to WORK, not profit from, the good of a cause that will not personally enrich them, but will benefit the public for years to come, in perpetuity, which was what was designed when the Board of American Cinematheque accepted $9.5 Million in Public Money.

Sincerely,

Kelley Smoot
Harold & Letitia Fairbanks Smoot's daughter
Douglas Fairbanks step-grandniece
info [at] SaveTheEgyptian [dot] com