A number of people invested more than $700,000 but the SFO said Fagan was attempting to obtain $4.5 million in total.
One of the charges Judge Les Atkins used to "define" his sentence was his attempt to encourage further investment by a couple into a company called Remote Management Systems (RMS).
The company specialised in producing units to speed up broadband internet.
Fagan forged an email from Telecom employee Teresa Guthrie stating they were intending to purchase 8000 units each month in 2011, which would increase to 10,000 units in 2012 and 2013.
Judge Atkins said a victim impact statement from the couple involved described them as "devastated". He said the incident had placed significant strain on their marriage and they had lost a large amount of money.
Christopher Wiley, a shareholder in RMS, became concerned about his investments and tried to on sell his shares. In a bid to delay this, Fagan falsified a bank statement claiming to have $300,000 to buy these.
In his statement, Mr Wiley said he had lost retirement money and had suffered a "complete physical breakdown". He had become a "recluse" and his Parkinson's had been accelerated.
Judge Atkins said he had serious doubts about reparation despite Fagan claiming he could re-pay his victims after the sale of his own investments.
As Fagan was sentenced, his wife of 15 years hugged and kissed him goodbye. A discount was given for his guilty pleas and remorse which his counsellor stated to be at an "extreme stage".
In August 1996, it was discovered Fagan stole $1.2 million from Northcote College in Auckland, where he worked as a finance manager.
After firing a gun at the school, he stole a car and went on the run.
A phone call was made to Holmes and the pair chatted for around 15 minutes. They arranged to meet at Auckland Airport but as Holmes was arriving, Fagan gave himself up to police.
