FED: Cooper and Howard face court over HIH collapse

AAP General News (Australia)
12-23-2003
FED: Cooper and Howard face court over HIH collapse

By Alex Wilson and Karen Davis

SYDNEY, Dec 23 AAP - Former HIH Insurance finance boss Bill Howard walked out of court
a free man today despite admitting criminal conduct, while Brad Cooper - the man he accused
of bribery - made his first appearance.

Howard, the failed insurer's former financial services general manager, became the
first person convicted for his role in the HIH collapse when he was sentenced in the NSW
Supreme Court to a three-year suspended jail term.

He pleaded guilty to two counts of criminal misconduct.

He admitted he received $124,000 in bribes from Cooper and, in return, organised payments
to companies linked with the high profile entrepreneur including a $737,500 payment HIH
was not obliged to make.

Across town, Cooper, the former director of an HIH subsidiary, faced court for the
first time since Howard accused him of making the five corrupt cash payments.

The former Collingwood Football Club director is facing 10 charges including making
corrupt cash payments and giving a false or misleading statement.

Insurance giant HIH collapsed in March 2001 and a subsequent Royal Commission made
more than 1,000 adverse findings against those involved.

Howard and Cooper were two of those named by the Royal Commission as taking advantage
of the "rivers of money" which flowed from the wounded insurer in its last six months.

In sentencing Howard, Justice David Kirby said the 43-year-old accountant could have
spent up to two years of his sentence behind bars if he had not cooperated with authorities.

He said Mr Howard was entitled to a "discount" on his sentence for confessing his misconduct
to the Australian Securities and Investments Commission (ASIC) before he was charged.

"But for the promise of future assistance I would not have suspended the sentence,"

he told the court.

"Should you fail to honour your undertaking, you will be liable to serve the prison term."

Justice Kirby said the maximum penalty for each offence was five years imprisonment,
or a fine of $200,000 or both.

Mr Howard had acted dishonestly and was guilty of gross breaches of trust, he said.

"Repeatedly over a number of months he failed to act in the interests of the corporation
preferring his own interests," he said.

"He did so at a time when he well knew that the corporation was on its knees."

Howard's promise to help ASIC with their inquiries could be bad news for HIH heavyweights
with something to hide.

Cooper, the first to be fingered, appeared in the Downing Centre Local Court today.

The former security alarm salesman could not find a seat in the crowded courtroom,
and stood to the side, dressed in a suit and tie, watching proceedings.

Cooper's lawyer Greg Stanton told the court the case against Howard had been prepared
in "obscenely expedient" circumstances.

Mr Stanton said he would be applying for an easing of the travel restrictions which
were part of the conditions of Cooper's bail.

Magistrate Daniel Reiss granted Cooper leave to be excused from attending court when
the case is next heard on February 24.

AAP apw/kd/nf/mo/de

KEYWORD: HIH NIGHTLEAD

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