Four directors of the failed finance company Lombard Finance have pleaded not guilty to criminal charges at the start of their trial in Wellington.
Former Justice Ministers Sir Douglas Graham and Bill Jeffries, along with Michael Reeves and Lawrence Bryant are accused of making false statements in offer documents issued in 2007 and 2008 and misleading investors.
Lombard Finance collapsed in April 2008 owing $127 million to about 4400 investors.
The criminal charges were laid in April last year under Section 58 of the Securities Act and carry a maximum penalty of five years' imprisonment or fines of up to $300,000.
The Crown alleges the directors did not adhere to Lombard Finance's published policies and exposed investors to an undiversified portfolio.
The trial is expected to last for six weeks.
