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Music to My ears!!!

  1. munch

    3,567 posts.
    I would have prefered a gaol sentence but it's still not a bad punishment. Adler you SUCK!!!!!


    11:07 AEST Fri 31 May 2002


    Adler banned for 20 years


    Corporate high flier Rodney Adler was banned from being a company director for 20 years for his role in a $10 million deal which included an attempt to prop up shares in collapsed insurance giant HIH.

    Adler, who was a director of HIH, and his family company, Adler Corporation, were this year found by the NSW Supreme Court to have breached the Corporations Act over the transfer in 2000 of $10 million from an HIH subsidiary to Adler Corporation's Pacific Eagle Equities.

    Justice Santow found $4 million of the money was used to buy HIH shares to prop up the company's share price, $3.8 million spent on buying three investment holdings from Adler Corporation and the rest given to companies associated with Adler and his company in unsecured loans.

    The Australian Securities and Investments Commission took court action against Adler, HIH's former chief executive Ray Williams, and the company's former chief financial officer, Dominic Fodera, over the transaction.

    Williams and Fodera were also found to have breached the Corporations Act, with Justice Santow saying Williams' conduct amounted to a "gross disregard of HIH's interests" and that Fodera facilitated the transaction but tried to "wash his hands of it".

    Justice Santow imposed penalties on the three former directors and Adler Corporation, with Adler receiving the harshest.

    As well as banning Adler from being a director for 20 years, Justice Santow also fined him $450,000 and Adler Corporation $450,000.

    "I have set the period at 20 years, taking into account the absence of fraud by recognising that there is no expression by Mr Adler to indicate that he would not offend again, so that the public should be protected by a very substantial banning order ...," he said.

    "I believe the public protective and deterrent purposes are thereby sufficiently served by this lengthy period ..."

    Justice Santow found the $10 million payment was carried out at Adler's initiative and with Williams' concurrence.

    He said the conduct of Williams "was indeed conduct of the utmost folly" and banned him from being a director for 10 years and fined him $250,000.

    Fodera was fined $5,000.

    In a statement issued after the judgment, Adler said while respecting the court's decision, he was disappointed by Mr Santow's orders.

    "I wish to say that I was acting honestly at all times and, I believe, in the best interests of the companies with which I was associated," he said.

    Adler said he would appeal Justice Santow's findings and seek a stay on his orders.

    The dramatic demise of HIH was Australia's biggest corporate collapse last March, with losses of up to $5.3 billion.

    Australian Securities and Investments Commission Chairman, David Knott, said the case highlighted the serious consequences that could flow from a failure of good corporate governance.

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