05-342 Bradley Cooper found guilty of corruption of a HIH executive
Monday 31 October 2005
Mr Jeffrey Lucy, Chairman of the Australian Securities and Investments Commission (ASIC), today said the successful prosecution Mr Bradley Cooper was a further important step in bringing those associated with the failure of HIH to account.
Mr Cooper, a former Chairman of the FAI Home Security group, has been found guilty in the Supreme Court of New South Wales today of 6 charges of corruptly giving a cash benefit to influence an agent of HIH Insurance Limited (HIH) under s249B of the Crimes Act. He was also found guilty of 7 charges of publishing false or misleading statements with intent to obtain a financial advantage under s178BB of the Crimes Act.
The verdict followed a 44 day jury trial before Justice Bruce James.
The convictions relate to Mr Cooper paying approximately $120,000 to Mr William Howard, a former Finance General Manager of HIH, to facilitate payments to Mr Cooper, or entities associated with him, totalling $4.9 million, plus the forgiveness of a further debt owed to HIH of $1.79 million. The charges regarding the misleading statements relate to various occasions where HIH or its agents were induced into making payments to Mr Cooper or associated companies.
Mr Cooper was remanded in custody and will appear for sentencing on 2 December 2005.
The Commonwealth Director of Public Prosecutions prosecuted the matter.
Background
On 3 December 2000, Mr William Howard, a former General Manager of HIH Insurance Limited, met with Mr Cooper at the Unity Hall Hotel, Balmain to discuss various outstanding claims Mr Cooper indicated were outstanding by HIH. At this meeting, Mr Cooper offered Mr Howard an undisclosed cash incentive and future employment at Home Security International Inc. (a company controlled by Mr Cooper) as an inducement to fast track these claims.
At the time, HIH was in a significantly difficult financial position.
The evidence has shown that on or about the 22 December 2000, Mr Howard received approximately $20,000 in cash after a meeting at Mr Cooper’s office in North Sydney.
On this same day, Mr Howard opened a safe deposit box at George Street in Sydney.
In early January 2001, Mr Howard received a further $30,000 while attending the Ritz Carlton Hotel. Mr Cooper had the money in a leather bag and they proceeded to transfer the money into another bag in Mr Howard’s possession.
On 18 January 2001, Mr Howard was on holidays at Noosa Queensland and Mr Cooper arranged for the delivery of $9,000 in cash by a Mr Allan who lived in Brisbane.
In February 2001, Mr Cooper and Mr Howard again met, this time at the Sheraton on the Park Hotel, and Mr Cooper handed Mr Howard an envelope containing $40,000 in cash.
The final payment of approximately $20,000 occurred at Mr Cooper’s Balmoral penthouse the week before the collapse of HIH in March 2001.
On and after 15 December 2000, Mr Cooper published a series of statements to HIH which recorded that HIH owed Vision Publishing Pty Limited, a company controlled by Mr Cooper, $1.2 million after this commitment had already been satisfied in full.
On or after 8 January 2001, Mr Cooper published a statement to HIH which recorded that HIH owed The Goodwill Group Pty Limited, a company controlled by Mr Cooper, $825,000 and $375,000 for a Sponsorship Package and Consulting Fees which were neither overdue nor due and payable.
On 30 January 2001, Mr Cooper published a statement to HIH which had attached a letter dated 2 August 1999 signed by Mr Rodney Adler, addressed to Mr Bradley Cooper approving an undisclosed debt when in fact the approval letter had not been created on that date.
On or about 7 February 2001, the same letter dated 2 August 1999 was forwarded to Mr Cooper’s then solicitors who relied upon the letter for subsequent advice to HIH.
In March 2001, Mr Cooper published a statement to HIH which recorded that HIH owed The Goodwill Group Pty Limited reimbursement of a exchange rate difference in shares sold to Mr Cooper, in Publicard Inc, listed on the NASDAQ.
End of release
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