DURHAM, North Carolina (29 Jan 2003) -- Divers Alert Network (DAN) has sent CDNN copies of two letters responding to allegations it has failed to uphold its dive safety mission and that its CEO, Peter Bennett, attempted to "line his own pockets" by transfering DAN assets to a company he secretly owned and used DAN funds for lavish personal expenses. In a letter to DAN members, Bennett and DAN Board chairman Bill Hamilton deny any wrong-doing and argue the allegations of impropriety have not been substantiated. In a second letter to the Independent Weekly, which recently published an article detailing Bennett's alleged financial shenanigans, Hamilton argues that Bennett's "golden parachute" is an "internal personnel matter" (despite demands from DAN members and the diving public to disclose the details), and brushes off criticism of DAN's lucrative off-shore tax evasion "insurance component" because "it pays for ongoing research". Letter to DAN members from Pete Bennett and Bill Hamilton Dear Members of DAN, This letter, mercifully brief, is to update you concerning the facts pertaining to DAN's present and future situation. It is being sent jointly by DAN's Board Chairman and DAN's President & CEO to assure you that we are in accord with regard to its contents. The letter is prompted, of course, by the recent spate of negative publicity strong on implication but weak on proof that recounts in some detail the struggles between the Board and Management over the past two years. These matters were shared with you and addressed by DAN itself on our website prior to this publicity. The difficulties largely resulted from normal growing pains common to nonprofit organizations. Most important, however, is that these struggles are history. Board and management are now focused on the present and the future. At present, DAN is intent on fulfilling its Mission. Clearly this is critical to you as members, and we take our responsibility to each of you very seriously. DAN's attention to its Mission has been the key element of its phenomenal growth over the past ten years. Even during our recent internal turmoil, the Mission remained central to our day-to-day operations. Indeed, for a nonprofit organization it is our sole reason for beingænothing more, nothing less. We are pleased to announce that the search process for the next President & CEO is in full swing. By the end of April it is expected that the Board's Search Committee will recommend to the full Board a candidate as Dr. Bennett's successor. The selection process is designed to solicit input from present staff, international professionals in the field, and of course DAN's Board of Directors, who will make the final decision. We are working with an excellent search firm, and we are on a very tight timeline. It goes without saying that the multifaceted nature of the position makes it a challenging one to fill. In addition, we are also working closely with officials at Duke University to further clarify and strengthen our partnership. Institutional relationships, like any other, require periodic review to ensure that they comply with present realities. DAN has rapidly risen from a fledgling effort within Duke to a powerful and complex international nonprofit organization. It is the goal of this review to firmly position the Duke/DAN partnership such that it will thrive over the next twenty years and beyond. As DAN approaches the retirement of Dr. Bennett, we must also focus on ways to honor the multitude of his contributions to both DAN and to the field of diving medicine. Whereas there has been some unsubstantiated criticism of Dr. Bennett's tenure, no one denies that it has been his leadership and management that have made DAN the preeminent organization it is today. We will let you know about plans surrounding this retirement in the near future. In conclusion, the Board and management want to assure all DAN members that DAN is fiscally and operationally sound. Further, DAN revenues and donations are being used appropriately in support of the DAN mission and services to our members. Thank you for being a member of DAN. Sincerely, R. W. Bill Hamilton, Ph.D. Peter B. Bennett, Ph.D., D.Sc.
Board Chairman President and Chief Executive Officer | | Peter Bennett denies improprieties Letter to the Editor of Independent Weekly from Bill Hamilton This letter is in response to your "Deep Trouble" article by Jennifer Strom that ran on 2003 Jan 15. As the Chairman of the Board of Directors of Divers Alert Network, DAN, I am deeply troubled by some aspects of the article, and would like to try to set the record straight. I found the article to be well researched and basically accurate concerning the myriad of events during a period of turmoil that DAN has recently experienced. The article appears to be drawn primarily from court documents of a lawsuit initiated by Dr. Peter Bennett, DAN's founder and President throughout the organization's 23-year life, and three of his DAN colleagues, against five members of DAN's Board of Directors. The article reports on the details of the case and is embellished with interviews, but it does not make nearly clear enough that most of the accusations are not substantiated and may not be true. Of much greater concern, however, is the "packaging" of the article. Although the allegations are unsubstantiated, the first page lead-in and the Up Front editorial page both behave as if the article was the gospel truth, and that is just not so. The implications that Dr. Bennett and allies were "helping themselves" are incorrect and blatantly unfair to Peter Bennett, and are damaging to DAN. It is absurd to compare the situation at DAN to the events at Enron and WorldCom. Rest assured that DAN's finances and such matters as the employees' retirement benefits are intact and working as they ought to. I take issue also with the implication that Dr. Bennett will float down on a "golden parachute." Any retirement that may go to him is well deserved, appropriate, and has been thoroughly studied by the Board and DAN management; the size of it or even whether or not he gets any retirement benefits is an internal personnel matter that is not and should not be public knowledge; this information is being maintained confidential by the parties involved as is customary in virtually all comparable situations. No money donated to DAN is involved here. For the record, DAN's for-profit subsidiaries are, like DAN, fully regulated and audited and there is DAN Board oversight of all their Board actions. Although one component is offshore, all U.S. Federal taxes on this business are paid on a timely basis. In addition, revenue from DAN's insurance component pays for ongoing research in diving medicine and other services to divers, integral components of DAN's mission. DAN's insurance for divers continues to be an attractive benefit of DAN membership, and it will continue to be available without disruption. During the time it took to read the article, it is probable that somewhere in the world a diver was receiving emergency medical assistance—perhaps lifesaving—because of DAN. As your article affirms, DAN would most likely not exist as a global resource without the work of Dr. Peter Bennett over many, many years. It is very easy to criticize the style of entrepreneurs, for they are high profile persons determined to achieve success through their efforts and their passions. It therefore behooves us to honor the works and legacy of Bennett with at least the same vigor as we might use to criticize his style. R. W. Bill Hamilton
Chairman
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