Dominic Fodera failed to inform directors of the true nature of deals between HIH, Hannover Re and E&S Reinsurance
Dominic Fodera, the former chief financial officer of HIH Insurance Limited (HIH), today pleaded guilty in the Supreme Court of New South Wales to a charge arising out of an Australian Securities and Investments Commission (ASIC) investigation into the affairs of the HIH group of companies.
Fodera pleaded guilty to knowingly or recklessly failing to act honestly in the discharge of the duties of his office, dishonestly and intending to gain an advantage for HIH, namely a beneficial accounting treatment.
ASIC alleged that Fodera, in his capacity as an officer of HIH, failed to inform the directors of HIH and its auditor of the true terms and effect of all of the understandings and contractual arrangements proposed and entered into between HIH and its related companies and Hannover Ruckversicherungs-Aktiengesellschaft, Hannover Reinsurance (Ireland) Ltd and E+S Reinsurance (Ireland) Ltd, relating to the financial reporting period ended 30 June 1999.
Justice Bell adjourned the matter until 22 October 2007 for a sentence hearing.
The Commonwealth director of public prosecutions is prosecuting the matter.