Crown counsel Colin Carruthers had asked for jail sentences for two to two-and-a-half years each for Graham, Jeffries and Bryant and two to two years' nine months for Reeves. The lack of remorse, no guilty pleas and limited reparation offers meant jail must be considered, he said.
Instead, Justice Robert Dobson sentenced Douglas and Bryant to 300 hours' community service and ordered them to pay $100,000 in reparation, while Jeffries and Reeves received 400 hours' community service each.
Lombard investor Gino Zambon said the "fabulous four'' should have to pick up cigarette butts or get rid of graffiti for their punishment.
"The community work that they're going to do should be publicised in the paper - what they're going to do, where they're going to do it, so ordinary, common people like me can go along and think to themselves `boy, oh how the mighty have fallen','' Mr Zambon said outside court this afternoon.
Graham should also be stripped of his knighthood, he said.
"Who wants a sir wandering around the town with a criminal conviction. Not a good look, is it?
"The main thing (is) they've lost their mana, they've lost their reputation, I doubt if some of them could get a job as a used car salesman.''
The court was told investors had submitted 39 victim impact statements, with Hamilton woman Tristan Hooker wanting hers read out.
It told of how she was diagnosed in 2007 with a condition which left her unable to have children. She and her husband decided to pursue invitro fertilisation but were not eligible for public funding so invested $30,000 they had saved - all they had to their names - in Lombard to earn interest for a year while they prepared for the process.
They were attracted to Lombard because of the solid names behind it, such as Graham's.
Instead, they lost the lot. Were it not for family funding their treatments, they would have been unable to have the two children they had since had.
"I feel humiliated and vulnerable because I trusted people who I respected and admired.''
Justice Dobson told the court that while comparisons had been made between this case and that of Nathans Finance and Bridgecorp, in fact they were very different; the Lombard four had not intended to mislead but rather had failed to disclose the company's deteriorating liquidity quickly enough.
The offer documents, which expressed confidence of sufficient liquidity to meet repayments of investors' interest and principle, were in circulation for 101 days before being withdrawn.
If the risk had been specified, it was unlikely people would have either invested or reinvested with the company, Justice Dobson said.
Justice Dobson said in sentencing that Graham's and Bryant's ability and willingness to pay reparation entitled them to a discounted sentence.
Graham had said the $100,000 was "pretty much cleaning me out'', while Bryant would have to borrow to raise it.
However, Jeffries resisted reparation, saying he did not have the resources and in any case disagreed with the concept of a sentence being reduced upon payment of reparation.
Justice Dobson gave all three non-executive directors a 15 per cent sentence discount for their good reputations and high standing in the community.
Reeves had previously breached the Securities Act and been fined $1000 - something Justice Dobson said should not be disregarded as it had not sufficiently deterred him from offending again.
However, he accepted that and a teenage driving offence were "blips'' and said allowance could be made for Reeves' good character.
The overwhelming mitigating factor for Reeves was that he was suffering cancer; he had undergone a major operation in 2007 followed by chemotherapy. His health outlook was mixed, and he was the sole caregiver for two children and part-time caregiver for a third.
He was not in a position to pay reparation.
During the eight-week trial of the four directors, evidence was given that Lombard sales staff were still soliciting investment from members of the public in March 2008, less than a month from the decision by the firm's trustees to call in receivers.
Graham, Jeffries and Bryant refused to comment as they left the court tonight.
Jeffries has indicated he will appeal his conviction, while Graham and Bryant's defence counsel, Paul Davison, QC, said his clients had 28 days to decide whether they would.
"Their reaction is one of relief but, beyond that, I'm not going to be commenting about the sentences which have been imposed today,'' he said outside the court.
"My clients wish to leave the court and reflect on what has happened today, and there's nothing that they wish for me to say on their behalf.''
Prime Minister John Key said he would not be commenting on Graham's knighthood until the appeal process had played out.
