Criminal charges brought by the Australian Securities and Investments Commission (ASIC) against HIH former Deputy Chairman Charles Abbott were dismissed last week.

The Magistrates Court decision exonerates Mr Abbott of charges that he dishonestly used his position as a company director for improper purposes – a charge brought about after it became apparent he had secured a $180,000 payment ahead of creditors, armed with the knowledge of HIH’s imminent collapse.

The decision is good news for Mr Abbott, but for ASIC it undermines what has been a strong prosecutorial campaign, which has seen HIH executives – including former CEO Ray Williams and director Rodney Adler – jailed.

The basis of the decision rested on the fact that other professional services companies had also received payment at that time and those payments were considered proper.