HIH's Adler faces prison over scandal

A four-year investigation into the A$5.3bn (US$4.1bn) failure of HIH, Australia's biggest corporate collapse, is set to culminate today and tomorrow with the sentencing of the two most high-profile executives involved in the affair.
Rodney Adler, the former chief executive of FAI, the insurer taken over by HIH in 1998, and a well-known Sydney socialite, is due to be sentenced today. He will be followed tomorrow by Ray Williams, HIH's founder and long-time chief executive.
The pair could become the first former HIH directors to go to jail over the affair, which saw one of Australia's biggest insurers collapse with liabilities of up to A$5.3bn.
Mr Williams, who faces up to 12 years in jail, has indicated he expects to be imprisoned.
Together the two executives have pleaded guilty to seven criminal charges after an agreement with regulators to drop other proceedings against them. Both have already lost civil cases relating to their actions at HIH and have been banned from acting as company directors - Mr Adler for 20 years and Mr Williams for 10 years.
While the high-profile HIH investigations in Australia have already led to several successful prosecutions and disqualifications, the inquiry has become of greater international relevance following the launch last month of investigations into American International Group, the world's biggest insurer.
Several of the actions brought in Australia involve the irregular use of financial reinsurance contracts - also a key element in the US investigations - as well as one of the same reinsurance companies, General Re.