Financial improprieties discovered in internal review
The Screen Actors Guild is investigating a former manager for alleged financial improprieties.SAG disclosed the probe Sunday but would not provide the identity of the manager or the amount of the possible loss. A person with knowledge of the situation indicated the amount of the alleged misappropriation appeared to be $200,000-$250,000; that the internal investigation was being conducted in conjunction with a Big Four accounting firm; that the loss was discovered as a result of an internal control review; and that the investigation would probably be concluded by the end of the month. In addition, that person indicated that one other SAG employee has been dismissed as a result of the investigation for issues unrelated to the misappropriation. Guild, which has more than 300 employees, said it has not yet contacted law enforcement about the investigation and won’t do so until after it has completed its internal probe. SAG said the matter is under “active” investigation by senior executives internally and added that it reported on the probe to the guild’s national board at the panel’s October meeting. SAG said it had taken “appropriate” action against the former manager, but it did not disclose further details. It also said its insurance policy will provide full recovery of any possible losses. “Our members may rest assured that member funds are not at risk,” SAG said. SAG also said in a statement: “We can say nothing more about this matter until we have completed our investigation and reviewed all legal and other options available to the guild and, thus, will not further comment.” SAG has any annual budget of more than $50 million. It also processes an average of about $2 million in member residuals each day. SAG issued the statement Sunday as a result of an inquiry by Daily Variety.
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