A Crown prosecutor has told the Court of the Appeal former directors of Lombard Finance should have received harsher sentences.
Former justice ministers Bill Jeffries and Sir Douglas Graham, along with Lawrence Bryant and Michael Reeves, are attempting to have convictions on four charges of making false statements to investors before the company collapsed overturned.
Lombard Finance collapsed in 2008, owing investors more than $127 million.
Jeffries and Reeves were sentenced to 400 hours' community work, while Graham and Bryant were sentenced to 300 hours' community work and ordered to pay $100,000 reparation.
But the Crown says the sentences are inadequate and is asking the Court of Appeal to increase the penalties.
Prosecutor Colin Carruthers, QC, told the court on Wednesday the directors needed to tell investors about the company's severe decline in cash in its prospectus and failed to do so.
As a result, the document was misleading, he said.
