No he's absolutely not, there's a massive difference between having someone's password that's been reused on X number of sites and having a hashed version of a password that's only valid on one site.
Also if you wanted to make it secure you could restrict hash passwords to work only from certain IP addresses so you either have to be using a company internal machine or say the IP addresses from a police station.
Also if you wanted to make it secure you could restrict hash passwords to work only from certain IP addresses so you either have to be using a company internal machine or say the IP addresses from a police station.