A former director of Nathans Finance has been sentenced to home detention after pleading guilty to misleading investors about the state of the failed finance company.
John Hotchin, brother of Hanover Finance co-owner Mark Hotchin, has been sentenced to 11 months home detention, 200 hours community services and must pay $200,000 in reparations.
He will also help the Crown in its case against the other directors, Donald Young, Kenneth Moses and Mervyn Doolan, who face trial on 21 March.
Nathans Finance went into receivership in August 2007 owing $174 million to 7000 investors.
The Securities Commission says the directors lied in Nathans' prospectus and investment statement about its financial position in 2006 and 2007.