of the announcement of the Allianz joint venture, Adler persuaded the HIH chief executive at the time, Ray Williams, to provide $10 million of HIH's money to allow him to invest and ostensibly make money for HIH. One of the investments Adler made, through a trust called Pacific Eagle Equities, was HIH shares at a time when the HIH share price was falling sharply. The investment was a poor one, as the price continued to fall. Adler resigned as a director of HIH in January 2001. He was subsequently charged, tried and jailed for two and a half years over breaches of his director's duties. Conviction In 1999, Adler was appointed a Member of the Order of Australia for services to the insurance industry and philanthropy, but gave up the award after his criminal conviction. Adler was sentenced after pleading guilty on 16 February 2005 to four criminal charges: two counts of disseminating information on 19 and 20 June 2000 respectively, knowing it was false in a material particular and which was likely to induce the purchase by other persons of shares in HIH contrary to ; one count of obtaining money by false or misleading statements, contrary to ; and one count of being intentionally dishonest and failing to discharge his duties as a director of HIH in good faith and in the best interests of that company contrary to . In sentencing Adler, Justice Dunford said: The offences are serious and display an appalling lack of commercial morality…Directors are not appointed to advance their own interests but to manage the company for the benefit of its shareholders to whom they owe fiduciary duties…They were not stupid errors of judgement but deliberate lies, criminal and in breach of his fiduciary duties to HIH as a director. Adler was also disqualified from acting as a director of any company for 20 years; ordered to pay compensation jointly with Adler Corporation Pty Limited and Ray Williams of approximately A$7 million; and ordered to pay a pecuniary penalty of A$450,000. Adler Corporation Pty Limited was also ordered to pay a pecuniary penalty of A$450,000. Following his conviction, Adler was taken to the maximum security Metropolitan Remand and Reception Centre and following initial classification, was placed in Long Bay Correctional Centre, before being transferred to the minimum security Kirkconnell Correctional Centre in late April 2005. However, less than two months later, Adler was