The lawyer for a former Government minister on trial for breaching the Securities Act says the Crown has failed to prove any misconduct on his client's part.
Sir Douglas Graham is on trial in the High Court in Wellington, alongside other former directors of Lombard Finance.
The Crown says the Lombard directors misled investors in a 2007 prospectus, investment statement and advertising material.
However, Sir Graham's lawyer, Paul Davison QC said the Crown case is based on the Securities Commission's investigation, which worked backwards from when Lombard was placed in receivership.
He told the Court the directors' understanding of matters at the time those documents were issued was based on information available to them at that time and he said the Court must consider that fact.
Mr Davison said the Crown has been unable to show any misconduct by Sir Douglas because there was none and he said his client was a man of the utmost integrity and honesty who had tried to ensure that information going out to the public contained no exaggerations.
Closing addresses for the remaining accused will continue on Thursday.
Lombard Finance collapsed in April 2008 owing $127 million to about 4,400 investors.