Three former FAI Insurance executives faced a Sydney court yesterday in relation to their actions in the company. Charges against the trio have been brought following the findings of the royal commission which investigated the $5.3 billion collapse of HIH.

Former FAI COO Daniel Wilkie and Finance Director Tim Mainprize each face one charge of providing false and misleading information and two of failing to act honestly in their roles as officers. Former Reinsurance Manager Stephen Burroughs is charged with one count of failing to act honestly as an officer.

It’s alleged their dealings with reinsurer General Cologne Re enabled FAI to report a $8.6 million profit for the 1998 financial year rather than a loss of almost $20 million.

Prosecutor Stephen Rushton, SC, told the committal hearing in the Downing Centre Local Court the men arranged the reinsurance agreement in early 1998 and used it to mislead auditors.

“There was at all times an intention to mislead the auditors about the true substance of the arrangements,” he said. HIH made a successful $300 million bid for FAI in September 1998.

The hearing continues tomorrow.