A director of Dominion Finance, which lost investors more than $176 million, is seeking to serve home detention in her $6.8 million Remuera mansion.
Company director Ann Butler was one of six directors at the helm of Dominion Finance when it went under in 2008.
Butler pleaded guilty yesterday to seven Securities Act charges of making untrue statements in a prospectus and investment statements.
Shortly before proceedings got underway in the High Court at Auckland, she asked the security guard if she could get her tissues from her handbag.
The 64-year-old answered guilty in a steady voice as each of the seven charges were read out by the court registrar.
Justice Robert Dobson convicted Butler and called for a report on her assets. It is understood the Crown will be seeking a reparation order for investors.
Her lawyer Tim Mullins asked that a home detention report be written up on the suitability of Butler's home. In the meantime she was remanded on bail for sentencing next month.
Butler left court with a supporter and headed back to her home in the leafy suburb of Remuera which she part owns with fellow Dominion director Robert Whale, according to the property's title.
The house, which boasts a swimming pool, four bedrooms and bathrooms, has been on the market for over a year, according to a real estate agent.
The advertising bills it as "Paradise on offer here" with parking for five cars, wine cellar, home theatre and a library.
Dominion Finance investor Owen Hoddinott told APNZ that he hoped Butler's home would be sold and the money shared amongst investors.
Mr Hoddinott, who lost $100,000 of his retirement savings, said the idea of Butler living in a "plush place" in Auckland did not sit well with investors.
"Why not somewhere less expensive?"
The 66-year-old school teacher said he had had to go back to work part-time just to make ends meet.
"Really at the time, it just about killed me... The nights I spent just worrying about it, it still rankles me today to think that the money just disappeared."
Dominion Finance, which offered commercial and property loans, went under in September 2008 owing 5937 investors more than $176.9m.
Its sister company North South Finance was placed in receivership in 2010, owing $31 million to 3900 debenture holders.
Butler's fellow Dominion directors Vance Arkinstall, Richard Bettle, Robert Whale and Paul Forsyth will go on trial next month.
Butler's husband, Terry, was due to join them but died last month after a year-long battle with cancer.
Financial Market Authority head of enforcement Belinda Moffat, who brought the prosecution, said Butler was the 27th company director to be convicted by her authority.
"She has accepted that she failed to perform her role as a director and did not take the steps required to ensure she was aware of the true position of the companies."
