Thursday 27 June 2007 LAWFUEL – Legal Newswire – Former officers of FAI General Insurance Company Limited (FAIG), Messrs Daniel Wilkie and Ashraf Kamha, were yesterday committed in the Downing Centre Local Court in Sydney to stand trial following an investigation by the Australian Securities and Investments Commission (ASIC). Messrs Wilkie and Kamha face three criminal charges arising from ASIC’s investigation into the affairs of the HIH group of companies. Both men have been charged with two counts of failing to act honestly in the exercise of their powers and discharge of their duties as officers of FAIG. In respect of one of the charges, ASIC alleges that Messrs Wilkie and Kamha failed to act honestly with the intention of deceiving the Australian Stock Exchange (ASX), resulting in a falsely inflated profit result in the accounts of FAI Insurances Limited released to the ASX for the half-year ended 31 December 1997.
ASIC also alleges Messrs Wilkie and Kamha failed to act honestly with the intention of deceiving FAIG’s external actuary by failing to inform the actuary of information that was material to the actuary’s task of preparing a half-yearly updated estimate of outstanding claims as at 31 December 1997 for certain classes of insurance business. Both men have also been charged with one count of being privy to the fraudulent altering of a book affecting or relating to the affairs of FAIG. All the charges relate to reductions in the recording of case estimates (estimates of claims made on insurance policies written by FAIG).
In addition, the charge relating to the actuary concerns a failure to inform the actuary of a number of matters, including the results of a review which indicated that there was under reserving in certain classes of insurance within FAIG’s Corporate and Professional Insurance Division. Messrs Wilkie and Kamha had their bail conditions continued and will appear in the New South Wales Supreme Court on a date to be fixed. The Commonwealth Director of Public Prosecutions is prosecuting this matter. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Emma Forehan ASIC Media Unit Telephone: 03 9280 3354 Mobile: 0409 702 310