High Roller Williams Hits New Low
The Age
Tuesday August 30, 2005
FOUR years ago Ray Williams lived in a luxury home on a cliff-top in Balmoral, one of Sydney's most sought-after suburbs, and spent his weekends at a sprawling genteel retreat at Lake Macquarie.
Yesterday he declared himself bankrupt while serving a 41/2-year jail term, with a non-parole period of two years and nine months, for filing false financial statements and being reckless as a director of failed insurer HIH Insurance Group, which collapsed in early 2001 owing creditors $5.3 billion. His bankruptcy was triggered by a claim from HIH liquidator Tony McGrath seeking the return of a $960,000 termination payment made by HIH to Williams soon before he left the company, just weeks before it became Australia's biggest corporate collapse. On top of that, Mr McGrath has a contingent liability claim for hundreds of millions of dollars linked to Williams' directorship of HIH. Williams' former business partner Rodney Adler is also pursuing him for half the $8 million compensation bill the two were ordered to pay in May 2002, after the corporate regulator successfully sued the duo for breach of directors' duties. Adler paid all that sum but said earlier this year when he was sentenced to 21/2 years in jail that he would be pursuing Williams for half the damages. The bankruptcy is a distinct contrast to Williams' high life as chief of HIH. He was renowned for generous charitable bequests, lavish staff Christmas parties, gifts of luxury watches to key executives and high executive bonuses.He even housed his secretary at the Inter Continental hotel in Sydney - she commuted weekly to and from her Gold Coast home.
© 2005 The Age
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