The Serious Fraud Office (SFO) says it will withdraw charges laid against a former accountant of the collapsed company, South Canterbury Finance.
Terrence Hutton faced two charges of false accounting relating to two multi-million dollar loans.
SFO director Julie Read says the charges, which were initially laid in December 2011, were reviewed and found to be no longer fair.
The trial for the remaining three defendants is scheduled to start in March next year.
They face fraud charges that carry maximum penalties of between seven and 10 years in prison.