Report Backs Claims in Suit Against Thomas "The federal Equal Employment Opportunity Commission has found that there is evidence of the hostile work environment at Madison Square Garden that was described earlier this year by a former senior Knicks executive, Anucha Browne Sanders. She filed a sexual harassment lawsuit last January against Isiah Thomas, the Knicks' president, and the Garden. Browne Sanders accused Thomas of berating her with sexually explicit language, making inappropriate advances on several occasions and trying to undermine her working relationships with Knicks players. Thomas, who has denied all charges, said that last December he greeted Browne Sanders by placing his hand on her shoulder and trying to kiss her on the cheek. She was the Knicks' senior vice president in charge of business and marketing operations until her dismissal Jan. 19, which prompted her suit in federal court five days later. The commission's investigation supported her contention that she had been a victim of more than one incident of harassment and that ''she was subjected to a hostile work environment including, but not limited to, severe and pervasive verbal sexual harassment.'' The determination, by Spencer H. Lewis Jr., the district director of the commission's New York office, said the Garden had failed to take ''reasonable care to prevent or correct discrimination and harassment in the workplace.'' Lewis made his ruling last Friday, and it was released yesterday. His two-page letter did not describe the scope of the investigation. Lewis found that the commission's inquiry supported Browne Sanders's contention that the Garden had fired her in retaliation for reporting her claims to her supervisors. Lewis also wrote there was probable cause to believe the Garden had violated Title VII of the Civil Rights Act of 1964. The Garden, but not Thomas, was the subject named in the investigation. The commission's finding is not a verdict, but Kevin T. Mintzer, Browne Sanders's lawyer, said he hoped to use it to show a jury that ''an independent federal agency has found in her favor.'' He added, ''Certainly, a finding such as this can have an important impact.'' The Garden issued a statement, repeating its earlier characterization of Browne Sanders as an angry former employee and saying that her suit was financially motivated. ''We obviously disagree with the E.E.O.C.'s determination,'' the statement said, ''though it is not an uncommon outcome for this type of preliminary administrative review.'' Thomas's lawyers said in their statement that the commission ''is not a court of law.'' They continued: ''It did not conduct a full hearing of the facts, and its decision does not reflect any conclusion as to the merits of the case.'' They added, ''In a court of law, Isiah Thomas will be given an opportunity to face his accuser, cross-examine all witnesses and present evidence to demonstrate the allegations are without merit.'' PRO BASKETBALL"