Terry Cassidy, the former MD of HIH’s Australian operations, will be out of jail next February after serving 10 months of a 15-month sentence after pleading guilty to charges related to the collapse of the giant company.

His lawyer had argued that Mr Cassidy shouldn’t be jailed like his colleagues Ray Williams and Rodney Adler because of the assistance he provided to the Australian Securities and Investments Commission (ASIC) throughout the investigation.

But Justice James Wood of the NSW Supreme Court thought otherwise. While he acknowledged Mr Cassidy’s assistance to investigators, he thought the charges – including two counts of acting with reckless disregard in making misleading statements and one count of failing in his duties as a director – warranted a jail term.

Justice Wood said while Mr Cassidy’s actions didn’t cause the collapse, they did involve “a serious breach of trust”.

ASIC Chairman Jeff Lucy says Mr Cassidy’s jailing reflects the regulator’s hard line on corporate crime.

“The sentencing of Mr Cassidy… reflects the community’s belief that company directors who act recklessly, and by doing so distort the true financial position of a company, should be held accountable for their actions,” he said. “The jailing of Mr Cassidy sends a very strong message that this type of conduct will not be tolerated.”