UPDATED 11.36AM: The Sensible Sentencing Trust says the early release of a fraudster sets a dangerous precedent on how we punish white collar criminals.

The trust is filing proceedings with the High Court over the Parole Board's decision to release Rod Petricevic, after serving only half of his sentence.

Petricevic was sentenced to six and a half years for defrauding investors of 400-million dollars.

Sensible Sentencing Trust Founder Garth McVicar says white collar criminals destroy peoples lives.

"With this particular case we have huge problems so we haven't taken this decision lightly to basically try and get some sense of justice for his victims, but also to get them to treat these white collar criminals more seriously."