Lithium aluminum hydride reaction with organic halides

Compound II was required in moderate quantity and chlorohydrin (I) was available in the laboratory from a previous project. Anyone with a standard background of organic synthesis would readily select lithium aluminum hydride (LAH) as the reagent of choice for the apparently simple reduction of the secondary halide. The reaction was in fact run but something funny happened on the way to compound II. Three other major products appeared, let alone the fact that II was obtained only in 5% yield. 

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