Jailed Head Of Hih Declared Bankrupt

Sydney Morning Herald

Tuesday August 30, 2005

Anne Lampe

Four years ago Ray Williams lived in a luxurious home on a clifftop in Balmoral, one of Sydney's most highly desirable suburbs, and spent his weekends at a sprawling retreat on the shore of Lake Macquarie.

Yesterday he declared himself bankrupt while serving a 41/2-year jail term, with a two-year nine-month non-parole period, for filing false financial statements and being reckless as a director of the 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 from Williams (above) of a $960,000 termination payment made by HIH to Williams shortly before he left the company and 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's directorship of HIH.

Williams's former business partner, Rodney Adler, is pursuing him for half the $8 million compensation bill the two were ordered to pay in May 2002 after the Australian Securities and Investments Commission successfully sued the duo for breach of directors' duties.

Adler paid all of that sum, but said earlier this year that he would be pursuing Williams for half the damages.

The bankruptcy is in sharp contrast to Williams's high life as chief of HIH where he was renowned for generous charitable bequests, lavish staff parties and gifts to executives.

© 2005 Sydney Morning Herald

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