Third HIH executive jailed for role in insurer's $32b collapse
The A$5.3 billion ($32.36 billion) collapse of HIH Insurance has led to a third top executive being sentenced to prison, but whether Australia's markets are now safer for investors - as some claim - remains to be seen.
Former HIH managing director Terry Cassidy was yesterday jailed for 10 months for his role in the 2001 collapse after pleading guilty to two charges of 'acting with reckless disregard' in making misleading statements and one charge of failing in his duties as a company director.
Cassidy admitted to overstating the assets of an HIH unit that was A$111 million in the red and backdating securities documents.
He joins two higher-profile colleagues jailed in the past month for their role in the country's biggest corporate failure.
Company founder Ray Williams and director Rodney Adler were each sentenced to a maximum of 41/2 years and ordered to pay A$7 million in compensation.
