Head of parole board retires over 'error of judgement' involving underworld figure

The chair of Victoria's parole board is standing down after allegedly providing legal advice to a Melbourne underworld figure.

Bill Gillard QC reportedly provided advice to Tony Madafferi on how to have his ban from Crown Casino overturned.

Corrections Minister Wade Noonan today issued an official statement, saying Mr Gillard announced his intention to retire from his position, effective May 8.

"Mr Gillard has served this state as a senior member of the legal profession, a respected judge of the Supreme Court of Victoria and as the head of the Adult Parole Board," the statement said.

"However, he has recently made what I consider to be an error of judgement that makes it appropriate that I accept his decision to retire."

Deputy Chair Judge Frank Shelton will take over as Chair of the Adult Parole Board until a permanent replacement is found.