Probe: No wrongdoing at SAG plans

An analysis into accusations of misconduct and financial problems within the Screen Stars Guild -- Producers Pension and Health Plans finds the accusations mostly are groundless. In the letter to arrange participants released Thursday round the plans' website, this program trustees -- that are SAG and industry reps -- asserted that "an extensive and independent analysis" finds no validity for the accusations by fired plan professional Craig E. Simmons. "Using the final results from the analysis, we could ensure the fiscal integrity in the SAG-PPHP remains appear along with your benefits feel relaxed,In . the letter mentioned. "In plain British, your monthly pension remains safe and secure your wellness plan's safe." Simmons has filed a complaint with the federal government saying he was ended for becoming a whistleblower about alleged embezzlement within the fund. The board of trustees in the plans, operated individually from SAG, declined the accusations in September and maintained outdoors counsel to look at the issue. Simmons alleged in the complaint filed while using U.S. Labor Dept. he was fired in March by leader Bruce Dow due to Simmons' refusal to mislead board trustees and government scientists about embezzlement with the plans' former chief information officer, Nader Karimi. Simmons also alleged inside the complaint that Dow together with other professionals had misused funds web hosting benefit. "The independent investigator discovered that almost all Mr. Simmons' accusations are false, including his claims that Mr. Dow is antigay, he triggered the expects to improperly pay health expenses for his wife, he triggered plan employees to use on his home and perform personal chores for him, he promoted employees who've been unqualified that they instructed staff to mislead U.S. Dept. at the office auditors. These items of information presented with the independent investigator were examined by PricewaterhouseCoopers' forensic auditors." The trustees also addressed embezzlement of $2 million that was discovered three years ago. "Regarding Mr. Simmons' claims of financial mismanagement, despite the fact that it's accurate the trustees discovered in 2008 that roughly $2 million happen to be misappropriated having a then-plan worker, the plans investigated the issue immediately, engaging forensic auditors along with a lawyer,Inch the letter mentioned. "The issue was effectively resolved taken, and substantially all of the misappropriated funds were retrieved from insurance companies. Plan assets were not materially affected." The trustees also mentioned that they are evaluating whether remedial actions are essential. "The trustees are dedicated to undertaking our fiduciary and ethical obligations and so are now involved with an entire summary of the plans' internal operational controls," the letter mentioned. "We've created a distinctive subcommittee in the board having its own independent counsel to look at the plans' recommendations and recommendations to make certain they remain up-to-date with recommendations.Inch The SAG health plan covers about 40,000 participants and contains assets more than $2 billion, because the retirement plan pays pensions to have an thought 9,000 devices. The plans introduced in October that, due to tough economic occasions together with a drop in TV earnings, they'd been expected to tighten qualifications needs and benefits, along with warning people who further cuts may be coming. Thursday's letter within the trustees did not discover the investigator, saying the individual was "highly regarded as as" and "independent." The letter was released 11 days after several SAG people are actually circulating instructions that questions the probe. 100s of individuals have since signed an internet-based petition. The letter within the people identifies the investigator as Nancy Solomon. The letter claims that Solomon can be a friend of SAG national professional director David White-colored that the 2 formerly had labored together within the lawyer of O'Melveny & Myers. "Due to these close associations, we've serious concerns that Ms. Solomon's objectivity and research may have been compromised, creating the cherry-picking of others to interview while overlooking individuals that might possibly not have been as encouraging of Mr. Dow," it mentioned. The letter also takes problem while using trustees due to not revealing the insurance policy settlement earlier and claims that trustees had not addressed Simmons' accusations. "Your fiduciary responsibility is always to safeguard this fund which, ultimately, might be the members' money," it mentioned. "We are feeling you have not properly addressed these wrongs nor are you currently presently forthright in interacting around.Inch Contact Dork McNary at dork.mcnary@variety.com