Two former directors of Nathans Finance have lost their bid to have their prison sentences overturned.
The company went into receivership in 2007, owing $174 million to about 7000 investors.
Mervyn Doolan, Kenneth Moses and Donald Young were found guilty at trial earlier this year, for breaches of the Securities Act.
Young was sentenced to home detention but Doolan and Moses were sentenced to two years four months and two years two months respectively in prison.
Both wanted their sentences commuted to home detention.
But the Court of Appeal says given the level of culpability found by the judge in the case, a prison sentence was clearly appropriate and there is no reason to alter that.
During sentencing Justice Heath noted that despite sending Moses to prison, he may enjoy a better lifestyle in his retirement than the seven-thousand or so investors.
John Hotchin, another director, admitted in May to misleading investors and was sentenced to 11 months home detention.