Mr. Fagan, former chief financial officer at WRG BDDP, negotiated the financial settlement separately from his former boss, David Sklaver, who struck his own deal resulting in a carefully worded agency statement last week that enoxerated him. Mr. Sklaver had resigned as president last April at the same time Mr. Fagan was fired.
"Mr. Fagan has a smile on his face," said a source close to him, referring to the fact the publicity-shy Mr. Fagan wasn't mentioned in the agency's statement. Mr. Fagan is believed to have negotiated his settlement before Mr. Sklaver resolved his issues with WRG.
Officials at the New York agency wouldn't comment on Messrs. Sklaver or Fagan, except to say the statement regarding Mr. Sklaver speaks for itself.
"After reviewing relevant information, WRG BDDP has concluded that its former president David Sklaver did not knowingly engage in wrongful conduct," the statement said. "The adverse publicity stemming from his resignation was not necessary and was damaging both to Mr. Sklaver and the firm. We sincerely regret the disruption this has caused Mr. Sklaver and his family. We appreciate the fine work he did for the agency, and we wish him well in his new ventures."
The statement doesn't otherwise attempt to alter the record of what happened last April, when WRG publicly alleged that Messrs. Sklaver and Fagan had misappropriated $500,000 in agency funds by making unauthorized payments to an outside production company, later found to be SeaGull Entertainment.
But the new statement does backpedal from WRG's April 12 memo circulated among staff, clients and the media that said in part: "Our agency had been exposed to very serious risk by individuals who took advantage of their positions of trust for personal gain."
Messrs. Sklaver and Fagan repaid the $500,000 to the agency last spring. Mr. Fagan's wife referred calls to his lawyer, who declined to comment on his client's dealings with WRG.