Rethrown exception disregarded

public void badmethod() throws Exception {
  boolean error = false;
  try {
   throw new Exception();
  } catch (Exception  e) {
   error = true;
   throw e;
  } finally {
   if (error) return;
  }
 }
 
 public void testbadmethod() {
  try {
   badmethod();
   System.out.println("WRONG");
  } catch (Exception ae) {
   System.out.println("RIGHT");
  }
 }

It prints out "WRONG". i.e., with return statement in finally caluse, the rethrown exception is swallowed.