The fact of the matter is, Anybody can be "a Hollywood producer." There are no qualifications, no license, no hoops to jump through. You just decide you are a producer and give your "company" a name. You advertize for scripts in one of the trades, and next week you'll have 100 screenplays to read.
That's all there is to it!
So let the writer beware. Just because someone says s/he is a producer does not mean s/he has a clue about how to put a movie deal together. There are more "amateur producers" running around than you may think.
Check the credentials and track records of producers, therefore, before you sign a contract with them. For this purpose, the Hollywood Creative Directory is a great tool.
And be careful. I've even had a "producer" bounce a big check on me. Be careful.
Be careful.
Get the picture?