PR Firm Ousts Former Chief in L.A.

The public relations firm Fleishman-Hillard, facing criticism and a lawsuit over its controversial billing practices in Los Angeles, on Wednesday ousted the former head of its local office.

Two other senior vice presidents with the company were also off the company payroll effective Wednesday.

Both men worked with Doug Dowie, the former head of the Los Angeles office, on the firm’s Department of Water and Power contract.

The public relations firm has been accused of padding its bills on the DWP contract and is under investigation by local and federal prosecutors.

Dowie, who was on paid leave from his job as partner and general manager of the firm’s Los Angeles office, was told Wednesday he is no longer an employee of the firm, according to his attorney, Thomas Holliday.

Richard Kline, regional president and senior partner of the firm, declined to say whether Dowie or the others -- Steve Getzug and John Stodder -- were fired, pressured to resign or paid a financial incentive to quit.

“As of today, three employees associated with the DWP account ... are no longer employees of Fleishman-Hillard,” Kline said. “Following our practice in personnel matters, I can’t comment on their departure. We are making no accusations.”

Holliday said Dowie was not given a reason.

“It has been conveyed to him that he’s no longer part of Fleishman-Hillard. He looks forward to moving on with his life,” Holliday said. “We are very disappointed, but it doesn’t change our position that Doug Dowie has done nothing wrong.”

Stodder, 48, confirmed that he left the firm’s employment Wednesday but said, “The circumstances are confidential between me and Fleishman-Hillard.”

An employee of the firm for just 2 1/2 years, Stodder denied any wrongdoing. “It is my firm belief that I always acted appropriately, ethically and in the best interest of all of my clients,” he said.

Dowie, a 13-year employee of the firm, had been on indefinite leave since July, pending the outcome of an internal investigation.

A former Marine and newspaper editor known for his combative personality, Dowie developed a close relationship with Mayor James K. Hahn, serving as one of his chief political fundraisers and an informal political advisor over the years.

The internal probe found that company billings totaling $652,457 over five years were not supported by any documentation, according to Kline.

He said Wednesday that the internal probe has been “merged” into investigations by prosecutors who have subpoenaed Fleishman-Hillard records.

In November, City Controller Laura Chick released an audit that alleged the firm overcharged the DWP $4.2 million through “unsubstantiated, unsupported and questionable” billings.

In court papers filed recently in opposition to the city lawsuit, Dowie denied that he instructed workers to pad billings to the city of Los Angeles, as alleged in a lawsuit filed by the city attorney.

Dowie, 56, asked a Superior Court judge to dismiss the lawsuit against him, saying it “is clearly frivolous, clearly vexatious, and is brought solely for the purposes of harassment.”

The lawsuit was filed in July after The Times reported that former Fleishman-Hillard employees said workers routinely inflated monthly billings to the Department of Water and Power, and were encouraged -- sometimes even directed -- to submit falsified time sheets.

Getzug, a seven-year employee of the firm, said Wednesday night: “I gave notice on Tuesday to pursue a new opportunity. I’ve been looking for another opportunity for a while.”

The three men charged the DWP some of the firm’s highest hourly rates. Dowie billed at $425 an hour, while the other two charged up to $315.

Officials said the departures would not halt the city lawsuit against Fleishman-Hillard.

“We fully intend to pursue the case,” said Frank Mateljan, a spokesman for the city attorney.

Councilman Tony Cardenas, head of the committee overseeing DWP issues, said he would not be deterred from seeking to recover any money overbilled.

“What Fleishman-Hillard does internally is their business,” Cardenas said. “How they treated us is our business and, if we were overbilled, we will recover that money.”

Times staff writer Ralph Frammolino contributed to this report.