HIH was already in trouble as a result of underprovisioning for claims over many years, and it accumulated large losses in the Lloyd's of London insurance market and in the US which eventually brought about its collapse in March 2001.

[5] 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.

[6] Adler was sentenced to 4½ years' custody, with a non-parole period of 2½ years after pleading guilty on 16 February 2005 to four criminal charges:[1] In sentencing Adler, Justice Dunford said:[1] 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.

[9] However, less than two months later, Adler was transferred to the higher security Bathurst Correctional Centre after allegedly secretly restarting his business career from within the Kirkconnell facility.

[12] Adler described the prison system as "Darwinian, degrading, outdated, boring and pointless" in an article written for The Bulletin magazine in December 2007.

[2] His business interests include short-term financing, equity investment, venture capital, property development and financial advice.

The estate of a late community member, Albert Yehuda, whose family was already commemorated in the centre's name commenced legal action that ended in the Supreme Court of Victoria.