The Court of Appeal has heard that the four former directors of Lombard Finance had believed that they could repay their debts due to favourable projections.
Former justice ministers Bill Jeffries and Sir Douglas Graham, and Lawrence Bryant and Michael Reeves are attempting to have their convictions on four charges of making false statements overturned.
The directors' lawyer, Jim Farmer QC, told the court on Tuesday a 12-month projection in late 2007 showed an eventual rapid improvement in Lombard's position.
He said that clearly influenced their belief they would be able to pay back their debts and did not have to declare more about the risks to investors in their prospectus.
Mr Farmer said the prospectus did broadly outline key risks.
Lombard Finance collapsed in 2008 owing investors more than $127 million.