The former National Finance director Carol Braithwaite has today been sentenced to ten months home detention and 300 hours community work, in a prosecution taken by the Financial Markets Authority.
Ms Braithwaite was convicted in July on one charge of making untrue statements in a prospectus for National Finance 2000 Ltd.
"Today's sentence highlights the fact that directors are accountable for disclosure obligations and that they cannot rely on what others tell them," said FMA Head of Enforcement Belinda Moffat.
"All directors are responsible for having proper oversight and understanding of the business and its financial performance," Ms Moffat said.
National Finance collapsed in 2006 owing over $20 million to more than 2,000 investors.