Former National Finance director Carol Braithwaite has been sentenced to 10 months home detention and 300 hours community work for making untrue statements in a finance company prospectus.
The High Court in Auckland heard that the mother of five underestimated the risk and bad debt of National Finance.
She also failed to disclose that she was married to her fellow director Trevor Ludlow when interest-free loans were taken to buy luxury apartments in Fiji.
National Finance collapsed in 2006, owing more than 2000 people over $20 million.
Braithwaite was convicted by a jury in July, after pleading not guilty.