Warner Communications and its four main record...

Warner Communications and its four main record labels filed a $16.7-million civil racketeering suit against independent record promoter Joseph Isgro, alleging that Isgro and his companies fraudulently collected payments on promotion contracts without completing much of the work promised. The suit, which counters Isgro’s $25-million antitrust suit pending against Warner and two other recording companies, also claims there is evidence that one of Isgro’s subcontractors paid radio station employees at least $522,650 between 1983 and 1985 in connection with promotional efforts. Isgro, 39, has been the focus of a federal grand jury probe of possible payola in the recording industry, which investigators allege resulted in virtual control over some radio stations’ play lists. Isgro and his associates have denied making any payments to station employees.