However, the decision from the Court of Appeal yesterday, to quash the original jail sentence of David Saxton was hailed as a "positive" result by his supporters.
The Saxtons were found guilty in 2007 of the theft of hundreds of thousands of dollars worth of pounamu from South Westland's Cascade Plateau.
David Saxton (62) was sentenced to two years and nine months in prison and his son to two years and six months in jail.
They had to pay $300,000 in reparation to Ngai Tahu.
A campaign was launched by supporters of the Saxtons who formed a trust to raise funds for an appeal.
The Saxtons subsequently lodged their appeal against the convictions and sentence last April, and were released on bail from Paparua Prison until the appeal could be heard.
In November, before the case was heard, Morgan Saxton (30) was killed in a helicopter crash into Lake Wanaka.
The Court of Appeal allowed his mother to continue the appeal.
In a decision released yesterday, the court dismissed both men's appeals against conviction, but granted David Saxton's appeal against his sentence.
The court quashed his original sentence, replacing it with six months' home detention.
The appeal against Morgan Saxton's sentence was dismissed.
Toby Wallis of the Saxton Appeal Trust called David Saxton's home detention a "win".
Ngai Tahu yesterday said the South Island Runanga was satisfied with the Court of Appeal's decision to uphold the pair's convictions.
