EXCLUSIVE: I’ve learned that whistleblower Craig Simmons has been telling federal authorities what he knows about the Screen Actors Guild Pension & Health Plan scandal. During October 2011, November 2011, and December 2011, he testified under oath during three sessions in Los Angeles with the FBI, IRS, Securities & Exchange Commission, Department Of Justice, and Department Of Labor inside the Federal Building in Westwood. My information is that the authorities were taking copious notes while Simmons spoke. Insiders also tell me that federal investigations are now ongoing into not just one embezzlement and cover-up inside the SAG P&H Plan but also another fraud and cover-up there which makes two scandals altogether. I understand the FBI asked Simmons not to go public about the probes and he has not spoken publicly about his whistleblowing. [See Simmons’ letter here to the SAG P&HP 36 Board Of Trustees, and Simmons’ letter here to the Department Of Labor, which led to the federal probes.] So Deadline is the first to break this important news.
My understanding is that when Simmons went in to testify, the feds already had documents in their possession outlining what embezzlements and cover-ups may have taken place. However, I can also now confirm that federal investigators last week and this week arrived at SAG P&H Plan offices in Southern California and in Massachusetts and carried out several dozen boxes of paperwork to unmarked cars waiting outside. (Did Federal Officials “Raid” The SAG P&H Plan Offices?) New information reaching me is that this visit took place on Wednesday, March 7th, and not on Friday, March 9th, as I’d previously reported. And a few weeks earlier a man identifying himself as an investigator came into the offices at 4 PM with a copy machine on big dolly and spent 4 to 5 hours Xeroxing documents. And today New England SAG member James McIsaac wrote on Facebook from Massachusetts that “My local pres just confirmed the FBI picked up some papers at the P&HP office.” I’ve received more confirmations that the visits were in connection with official probes into the SAH P&HP wrongdoing.
In my opinion, it’s a day late and a dollar short for the SAG P&H Plan to come clean about exactly what is going on regarding any and all city, county, and/or federal investigations into allegations of embezzlements and cover-ups. (In fact I am in a possession of an internal SAG P&HP memo instructing staff to tell any callers about my article to say, “No, nothing happened on Friday” — because it took place that Wednesday. Talk about parsing!) Nothing worse than if that organizations is accused of trying to cover-up the cover-up of the fraud. And nothing worse than these probes intensifying during the membership vote on the pending SAG-AFTRA merger. Because no future plans for the two unions’ pension and health plans — not even whether they’ll be operated separately or combined — have been revealed or even formally studied by SAG and/or AFTRA leaderships. Present SAG Guild leadership likes to point out that the SAG P&H Plan is run separately from the union. But some of SAG Guild’s officers have been SAG P&HP trustees. For instance, at the time Simmons was fired, David White was President of the Board of Trustees of the SAG P&H Plans and the National Executive Director of the SAG Guild. Duncan Crabtree-Ireland is a Trustee of the SAG P&HP and the General Counsel of the SAG Guild. John McGuire is a Trustee of the SAG P&HP and the Senior Adviser of the SAG Guild.
Craig Simmons, of course, is the veteran SAG P&H Plan high-ranking executive and attorney who first discovered what he alleges are several embezzlement schemes and cover-ups inside the organization. He maintains that the fraud involved tens of millions of dollars and that, when he discovered it, he was asked to stop his investigation and lie to authorities about the wrongdoing. When he refused, he was fired. On August 23, 2011, Simmons wrote personalized private letters detailing the scandal to all 36 members of the SAG P&H Plan Board Of Trustees — read it here.
Simmons gave the Trustees two weeks to remedy the situation or warned he was going to federal authorities. Which he did and sent a September 14, 2011, letter directly to the U.S. Department Of Labor. (Read it here…) His Fall testimony in front of various federal authorities is a direct outgrowth of his whistleblowing.