HIH's former chief executive was sentenced Friday to 4 1/2 years in prison for his role in the country's largest corporate collapse.

Ray Williams pleaded guilty in December last year to three charges, including failing to effectively perform his duties as a company director from 1998 to 2000, providing misleading information and overstating operating profits by A$92.4 million.

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.

He faced a five year imprisonment term on each of the first two charges, and a two-year sentence for the third charge.

Williams's lawyer Robert Heathcote said the former corporate top manager would appeal the sentence, which he called "excessive."

"Mr. Williams is bitterly disappointed in the sentence that was handed down this morning," Heathcote said.

Another former HIH director, Rodney Adler, on Thursday received a 4 1/2 year sentence for his role in the collapse.

Director Terry Cassidy, who pleaded guilty to three charges in March, will be sentenced next week.