The former chairperson of failed finance company Bridgecorp has been sentenced to home detention after admitting that he misled investors.
The company collapsed in 2007, owing investors $450 million.
Bruce Davidson earlier pleaded guilty and on Friday was sentenced in the Auckland High Court on 10 charges relating to misleading statements to investors.
He was sentenced to nine months' home detention, ordered to pay $500,000 in reparation and carry out 200 hours of community work.
Justice Andrews said she accepted that Davidson had shown genuine, sincere and deep remorse, was of good character and had done nothing dishonest.
The judge told Davidson she accepted that he had been misled over some aspects of the business, but that he was too forgiving of Bridgecorp's inadequacies.
Financial Markets Authority chief executive Sean Hughes said several factors led to Davidson avoiding jail.
"Mr Davidson approached us early on and indicated that he was prepared to plead guilty. Before the court he expressed remorse and the court took into consideration his early plea and also evidence as to his character.
"The basis of the sentencing decision made today reflects all of those factors."
Four other Bridgecorp executives will face trial later in October. Directors Rod Petricevic and Rob Roest and non-executive directors Peter Steigrad and Gary Urwin are accused of defrauding investors.