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Thursday April 14, 02:57
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Culprit of HIH Insurance collapse sentenced to 4 1/2 years
(by Dr.Goldfinger)
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A former director of HIH Insurance was sentenced to a prison term Thursday. He received 4½ years for his involvement in Australia’s largest-ever corporate collapse.
HIH Insurance, once Australia’s second-largest insurer, crashed in March 2001 with US$4.12 billion debts. As a result, thousands of policy holders were left with unpaid claims and several home-building companies insured by HIH were brought to collapse.
Rodney Adler pleaded guilty in February to four charges, including a charge of receiving money by false or misleading statements and of failing to perform his duties as a company director. The other two charges were in connection with a A$2 million loan in 2000 from HIH to a company with which Mr. Adler was linked, Business Thinking Systems.
Mr. Adler was sentenced on each of the four charges, some to be served simultaneously. In general, he was sentenced to 4½ year imprisonment, but could be released on condition in 2½ years.
Mr. Adler is the first of three former HIH executives to be sentenced for the collapse case. The others are Chief Executive Ray Williams, who will be sentenced Friday, and Director Terry Cassidy, who will be sentenced next week.
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