Friday 1 September 2006 06 – LAWFUEL – Law News Network – Mr Dominic Fodera, the former Chief Financial Officer of HIH Insurance Limited (HIH), today pleaded not guilty to a criminal charge of authorising the issue of a prospectus from which there was a material omission, in the Supreme Court of New South Wales. The charge arises from an investigation by the Australian Securities and Investments Commission (ASIC) into the affairs of the HIH group of companies.
ASIC alleges that on or about 26 October 1998, Mr Fodera, in his capacity as an officer of HIH, authorised the issue of a prospectus by HIH Holdings (NZ) Ltd for converting notes, that contained a material omission. The material omission concerned the effect of a transaction entered into at the same time between HIH and Societe Générale Australia Limited (SGAL) relating to SGAL’s taking up a priority allocation of the notes in the approximate sum of A$35 million in exchange for HIH depositing approximately A$35 million with SGAL. Mr Fodera had his bail conditions continued.
The trial will commence on 26 February 2007. This matter is being prosecuted by the Commonwealth Director of Public Prosecutions (CDPP). Background Mr Fodera is also due to appear in the Supreme Court of New South Wales on 6 October 2006 in relation to four criminal charges of giving misleading information and a further two charges of failing to act honestly as a director. These charges are also being prosecuted by the CDPP and arise out of an ASIC investigation into the HIH group of companies. For further information contact: Danielle Huck ASIC Media Unit Telephone: 03 9280 3407 Mobile: 0417 540 769