SAG P&H Trustees address accusations

An analysis into accusations of misconduct and financial problems in the Screen Stars Guild -- Producers Pension and Health Plans finds the accusations are mainly groundless. Inside a letter to organize participants published Thursday around the plans' site, the program trustees -- made up of SAG and industry reps -- asserted that "a comprehensive and independent analysis" finds no validity towards the accusations by fired plan professional Craig E. Simmons."In line with the outcomes of the analysis, we are able to guarantee the fiscal integrity from the SAG-PPHP remains seem as well as your benefits feel at ease,Inch the letter stated. "In plain British, your Type Of Pension is protected your wellbeing Plan's safe."Simmons has filed a complaint with the us government saying he was ended for serving as a whistleblower about alleged embezzlement in the fund. The board of trustees from the plans, operated individually from SAG, refused the accusations in September and maintained outdoors counsel to examine the problem. Simmons alleged inside a complaint filed using the U.S. Department at work he was fired in March by leader Bruce Dow because of Simmons' refusal to mislead board trustees and government researchers about embezzlement through the plans' former chief information officer, Nader Karimi. Simmons also alleged within the complaint that Dow along with other executives had misused funds for private benefit. "The independent investigator discovered that the majority of Mr. Simmons' accusations are false, including his claims that Mr. Dow is anti-gay, he triggered the intends to incorrectly pay health expenses for his wife, he triggered Plan employees to operate on his home and perform personal chores for him, he marketed employees who have been unqualified which he instructed staff to mislead U.S. Department at work auditors. These bits of information presented through the independent investigator were examined by PriceWaterhouseCoopers' forensic auditors."The trustees also addressed embezzlement of $two million inside a situation hat is discovered 3 years ago."Regarding Mr. Simmons' claims of monetary mismanagement, even though it is accurate the Trustees discovered in 2008 that roughly $two million have been misappropriated with a then-Plan worker, the Plans looked into the problem immediately, engaging forensic auditors and a lawyer,Inch the letter stated. "The problem was effectively resolved captured and substantially all the misapprorpriated funds were retrieved from your insurance provider. Plan assets weren't materially affected."The trustees also stated that they're evaluating whether remedial actions are needed. "The Trustees are devoted to undertaking our fiduciary and ethical obligations and therefore are now involved in a complete overview of the Plans' internal operational controls," the letter stated. "We've produced a unique subcommittee from the board using its own independent counsel to examine the Plans' guidelines and recommendations to make sure that they remain up-to-date with guidelines.Inch The SAG health plan covers about 40,000 participants and it has assets in excess of $2 billion, as the retirement plan pays pensions for an believed 9,000 receivers. The plans introduced in October that, because of tough economic occasions along with a drop in TV earnings, they'd been instructed to tighten qualifications needs and benefits, together with warning people that further cuts might be coming.Thursday's letter in the Trustees didn't identify the investigator, saying the person was "highly regarded as" and "independent." The letter was published 11 days after several SAG people happen to be circulating instructions that questions the probe. Hundreds of people have since signed a web-based petition.The letter in the people identifies the investigator as Nancy Solomon. The letter claims that Solomon is really a friend of SAG national professional director David Whitened which the 2 formerly had labored together in the lawyer of O'Melveny & Myers. "Because of these close associations, we've serious concerns that Ms. Solomon's objectivity and research might have been jeopardized, inducing the cherry-picking of others to interview while looking over other people who might not have been as encouraging of Mr. Dow," it stated.The letter also takes problem using the Trustees because of not revealing the insurance coverage settlement earlier and claims that Trustees hadn't addressed Simmons' accusations. "Your fiduciary responsibility would be to safeguard this fund which, in the end, may be the members' money," it stated. "We're feeling you haven't correctly addressed these wrongs nor are you currently forthright in interacting around.Inch Contact Dork McNary at dork.mcnary@variety.com