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Silage broker Paul Douglas Hadfield's refusal to pay back even "one red cent" to the rural customers he cheated may lead to him serving a second jail term.
Christchurch District Court Judge Michael Crosbie is taking two days to consider how to handle the case after hearing submissions today.
Hadfield, 66, is now out of prison on parole after serving the three-year term imposed in June 2006.
Judge Crosbie then gave him a nine-month reduction on his sentence because of an indication he would pay back the $335,000 he was convicted of taking with 81 fraud convictions.
Judge Crosbie had him brought back to court after learning that 16 months after the sentencing, nothing had been paid.
The judge is considering whether to impose a sentence of up to two years under section 19b of the Crimes Act, which allows penalties to be imposed for non-payment.
He said he understood that measures by the courts' collections department to recover the money were likely to be unsuccessful because Hadfield had his property held in trusts.
He also raised the possibility that the victims might seek to reclaim the money through civil proceedings.
Judge Crosbie noted at the sentencing that Hadfield had refused to allow access to his books. There was equity in his farm, jointly owned with his wife, and if he had sold his bloodstock from his harness racing breeding programme it would have contributed a considerable amount to reparation.
Defence counsel James Rapley said that if further jail time were imposed on Hadfield on Friday, the order for reparation ought to be quashed.
Crown prosecutor Mark Zarifeh said: "A view that your honour might come to in view of what's happened since (the sentencing), is that it's not simply a case of can't, but won't, and won't make any effort."
Judge Crosbie said: "I have got to take into account that his whole exercise, which has no doubt cost the taxpayers hundreds of thousands of dollars, is about Mr Hadfield not wanting to pay the victims a cent. He has steadfastly maintained that position.
"It is not just that he hasn't paid the $335,000. He hasn't paid one red cent."
- NZPA
