SAG Pension & Health Plan Rocked By New Lawsuit: Allegations Target CEO Bruce Dow

Feds Probing SAG P&H Embezzlements/Cover-Ups Allegations

BREAKING 7:30 PM… EXCLUSIVE… MORE DETAILS… Whistleblower Craig E Simmons today filed a wrongful termination lawsuit against his former employer, the Screen Actors Guild Pension & Health Plan. And the fired high-ranking executive makes explosive allegations against CEO Bruce Dow who is still apparently employed there. These accusations have been informally leveled against Dow and the SAG P&HP for months now, but for the first time Simmons puts them into the record via his legal complaint. (Read the 19-page lawsuit here.) If true, they beg for a complete and independent investigation as well as housecleaning at SAG P&HP which governs more than $2 billion in assets on behalf of SAG members.

Simmons was executive director of SAGP&HP human resources and held other top titles, and is a lawyer. One of his attorneys on this lawsuit is the well-known Greg Smith, who is currently running for LA City Attorney. The complaint alleges that Simmons was wrongfully terminated after reporting illegal conduct by CEO Dow. Simmons repeatedly talked and wrote to SAG P&HP trustees and execs and claimed Dow was swindling the organization out of multi-millions. The lawsuit filed in LA Superior Court today alleges that:

— Dow underreported the amount of money embezzled by a former employee,

— Dow was sending insurance business to his wife and pocketing part of the premiums,

— Dow was paying his brother-in-law for doing no work

— Dow was using insider investment information to benefit the International Church Of The Foursquare Gospel where he was a practicing member

— Dow asked Simmons to lie to the trustees and to the Department Of Labor to coverup wrongdoing,

— Dow is guilty of “obstruction of justice”.

These claims are separate from Simmons’ already public allegations made in letters to the trustees about a former SAG P&H Plan employee who embezzled millions from the organization and apparently was never made to account for the missing money or his fraud.

SAG P&H bigwigs and their surrogates have been trying to move heaven and earth to discredit anyone making allegations against the organization, especially while the SAG-AFTRA merger is being voted up or down by the Screen Actors Guild membership right now. The merger plans right now contain no blueprint for how the two unions’ pension and health plans will be conducted because of no formal study by SAG and AFTRA leaders.

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.

UPDATE: In January, SAG P&HP said Dow had requested a leave of absence just as the scandal surrounding him was starting to become public. No investigation was ever announced. In my opinion, even the appearance of a coverup must stop immediately and an independent probe begun.]

In documents filed today by his attorneys asking for a jury trial, Simmons alleges that he was wrongfully terminated on March 25, 2011, because he wouldn’t cover up Dow’s alleged multi-million dollar embezzlement scheme of the SAG P&HP. The firing of Simmons, who had been at SAG-PPHP since summer 2008, came just over two months after he had been promoted to HR Executive Director on January 14, 2011. Under the complaint of Labor Code and Public Policy violations by SAG-PPHP, Simmons is seeking punitive damages “in a sum which is an amount appropriate to punish and set an example of said Defendants, to deter such conduct in the future and to set an example for others”.

The lawsuit says that, in the beginning of 2011, Dow was under investigation from the Department of Labor in regards to funneling “SAG-PPHP insurance business to his wife and pocketing a portion of the money on the insurance premiums” and providing a “phantom job” to his brother-in-law. This came, the complaint says, after Simmons had earlier reported to Board trustees Leah French and Duncan Crabtree-Ireland that Dow was “underreporting … fraud incidents by millions of dollars” in regards to another employee stealing from the fund.

In January 2011, Simmons says that, as various other SAG-PPHP employees were being interviewed about the matter by the Labor Department, Dow asked him to “lie to the Department Of Labor investigator by affirming that Dow’s brother-in-law was an employee of SAG-PPHP.” Simmons says he “refused” that request. Simmons says he also refused Dow’s request not to tell the Board about being interviewed by the DOL. Simmons alleges that Dow arranged for “another Plan Executive Amanda Bernard to be interviewed” instead. (more…)

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