The Securities Commission has laid criminal charges against four Lombard Finance and Investments directors, including former National Party Cabinet minister Sir Douglas Graham.
Lombard Finance was placed in receivership two years ago owing $127 million to about 4400 investors.
Earlier this week, the commission laid civil proceedings against Sir Douglas, former Labour Party Cabinet minister Bill Jeffries, former Lombard Finance chief executive Michael Reeves and Lawrence Bryant, a former BBC presenter and press secretary to the Queen.
The Securities Commission alleges the four men misled investors. All face penalties of up to $500,000 each if convicted in the civil case.
The criminal charges carry a maximum penalty of five years in prison, or fines of up to $300,000 for each director.
Sir Douglas has already rejected the claims, saying the directors will defend all charges.
On Thursday, Mr Reeves has confirmed to Radio New Zealand they will also defend the criminal charges, but declined to comment further.
