Guild to Set Up Fund to Protect Actors

The Screen Actors Guild is expected to unveil today plans for a new $1-million Actor Theft Protection Fund to cover actors against losses when talent agencies fail or agents misappropriate funds.

Establishing the fund was part of SAG’s agreement last week with agents governing relations between the two groups, although few details were given at the time. That agreement, which allows limited investment in agencies by advertising agencies and advertisers, still must be approved by SAG’s board and members.

SAG said it will contribute $250,000 to the fund. An additional $250,000 will come from agents represented by two groups, the Assn. of Talent Agents and the National Assn. of Talent Representatives.

Talent agencies also will contribute an additional $300 each annually. The fund will pay claims up to $250,000, with bigger claims covered by an insurance bond purchased by the fund.

SAG said nearly $1 million has been lost in the last five years when agencies failed or agents took money belonging to clients.

The problem affects smaller Hollywood agencies rather than the top-tier ones but nonetheless has resulted in several cases in which SAG members lost large amounts of money. The biggest case occurred in 1999 with the bankruptcy of J. Michael Bloom & Associates, in which nearly $700,000 was lost, SAG said.

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James Bates