Retired Army major George Frederick McIntyre has been jailed for three years and three months for his business investment schemes, described by a judge as "a classic bubble".
"It was invariably going to burst," said Christchurch District Court Judge Raoul Neave.
The schemes failed to return any incomeand the investors - mainly Army personnel - lost savings totalling close to $1 million.
McIntyre's wife, Jennifer McIntyre, pleaded guilty to similar charges and was jailed for two years and eight months in August. But George McIntyre denied the offending and went to trial where a jury convicted him on charges of conspiracy to defraud and obtaining money by deception. Serious Fraud Office prosecutor Nicholas Till, QC, said McIntyre's sentence had to be higher than his wife's, because he went to trial.
Defence counsel James Rapley said it was amazing that people were able to set themselves up as financial advisers in a sector that was completely unregulated. McIntyre had not set out to fleece people.
Judge Neave said he believed there should have been some warning signs from the couple's accountants at an early stage: "I was surprised by some of the accounting practices which seem to have been signed off."
He said he saw the couple as equally culpable in the offending. McIntyre had offended by misleading people by offering them financial guarantees which were worthless and by being wilfully blind to the incredible dangers into which he was placing clients' funds.
The victims put in reports describing the effects of losing their savings as gut-wrenching, devastating and soul-destroying. The offending had caused stresses, depressive illnesses and marital problems. One of the victims spoke of having $60,000 stolen "by a trusted friend".
"It is clear that you and your wife have brought considerable devastation through your activities," said the judge.
Mr Rapley said McIntyre had been affected when he read the victim impact statements to him. McIntyre had said he wanted to pay the money back, but nothing was in place for that to happen, the judge noted.
