DOWIE CLAIMS HE'S SCAPEGOAT EX-FLEISHMAN-HILLARD EXEC SUES OVER FIRING.

Byline: Lisa Mascaro Staff Writer

The former head of Fleishman-Hillard's Los Angeles office filed a wrongful termination suit against the firm Tuesday, claiming he was made the ``scapegoat'' for the public relations company becoming swept up in City Hall's corruption scandal because of overbilling accusations.

The public relations executive, Douglas R. Dowie, took a polygraph test on Jan. 21, three weeks after he was fired, to clear his name over allegations the firm overbilled the city's Department of Water and Power, said his attorney Michael Faber.

Dowie, who was put on administrative leave last summer as the charges surfaced, seeks lost wages from his $370,000 a year job and other damages.

``When it got real hot politically, Fleishman, instead of standing by him and protecting him, they just threw him to the wolves,'' said Faber. ``Basically, he was just sacrificed by Fleishman. He's been wronged in a very fundamental way.''

Fleishman's regional president in Los Angeles declined to discuss specific claims against the firm. Company president John Graham in St. Louis did not return a phone call seeking comment.

``This lawsuit has absolutely no merit,'' said Fleishman's Richard Kline in Los Angeles. ``If this litigation goes forward, I'm confident that the facts will show we treated Doug more than fairly.''

The politically connected firm has been embroiled in a series of investigations by the city attorney, the district attorney and U.S. attorney involving as much as $4.2 million in overbilling in its $24 million DWP contract from 1998 to 2004, and broader allegations of campaign contributions being traded for city contracts as part of pay-to-play accusations involving members of Mayor James Hahn's administration.

The firm has acknowledged more than $600,000 in unsubstantiated billings on the DWP contract.

In the first federal indictment, former Fleishman-Hillard executive John Stodder, who reported to Dowie, pleaded not guilty last month to charges that he overbilled the DWP and other clients.

Dowie claims he continued to be backed by the company - even earning a promotion after the U.S. attorney served subpoenas on the firm in 2004, the suit said.

Dowie was placed on administrative leave ``in an act of cowardice,'' in July 2004 after the city sued, but he was promised he could keep his job and pay until the investigations were completed, according to the suit.

Later that year, in a conference call with company officials, he was told his future with the firm was ``secure,'' and that someday ```we'll all be singing 'Happy Days are Here Again,''' the suit said.

Even more, the suit claims that Fleishman's chief financial officer testified under oath - in the case brought by the city - that the firm ``knows of no violation of any statute, ordinance or regulation'' by Dowie.

The suit claims Dowie was terminated to ``curry favor'' with prosecutors.

The suit was filed as a breach of an implied covenant not to terminate without cause.

According to Faber, Dowie asked to take the polygraph test, which was set up by Dowie's other attorney Tom Holliday, who did not return a call seeking comment.

Neither the U.S. attorney, the district attorney or the city attorney would comment on whether the claims or results of the polygraph test would have any bearing on their ongoing investigations.

``Mr. Dowie has not been charged in relation to this matter and we don't comment on people who are not involved in litigation with this office,'' said Thom Mrozek, spokesman for the U.S. Attorney's Office,

who would only say the investigation is ongoing.

``It doesn't impact what we are doing here,'' said City Attorney Rocky Delgadillo's spokesman, Jonathan Diamond.

Faber said Dowie could have resigned, sought new employment and defended himself publicly rather than accepting the conditions of his leave, which included not talking publicly about the allegations. But he has been unable to get work because of the way the firm handled the situation.

``The damage to his reputation, the damage to his career is just irreparable.''

Staff writer Rick Orlov contributed to this report.

Lisa Mascaro, [phone]

lisa.mascaro(at)dailynews.com