Former FAI chief and HIH director Rodney Adler has been committed to stand trial on charges of manipulating the stockmarket. He appeared in Sydney’s Downing Centre Local Court last week on three counts of manipulating the stockmarket and two of making false or misleading statements in relation to securities.

Mr Adler, who has vowed to fight the charges, faces a maximum of five years jail and a $200,000 fine for each offence if he is found guilty. 

ASIC alleges Mr Adler contravened the Corporations Act during 2000 when he purchased more than three million HIH shares in the name of Pacific Eagle Equities and asserted they were being bought with his own money. ASIC alleges he was using HIH money.

The latest court action comes after the NSW Court of Appeals decision last week to uphold directorship bans against Mr Adler and former HIH CEO Ray Williams. They revolved around accusations that the two breached their corporate responsibilities, resulted in Mr Williams receiving a 10-year ban on being a director, while Mr Adler was banned for 20 years.

Committing Mr Adler for trial on the market manipulation charges, Magistrate James Garbett said it would be reasonably likely that a jury would convict him. The decision came about despite Mr Adler’s counsel Elizabeth Fullerton, SC, asserting that Mr Adler did not show criminal intent in buying the shares.

“I’m satisfied the whole of the circumstances indicate a clear intent,” Magistrate Garbett said.

The trial before the NSW Supreme Court will be held on a date to be fixed.