She was made a member of New Zealand Order of Merit in 2008 for her leadership, business and community roles.
In the judgement released last week, Judge Craig Coxhead said Adlam was not to charge or be entitled to a salary.
"Ms Adlam was in a position where her duties as a trustee conflicted with her personal interest. In taking money due to the Bath Trust for her own use [she] committed a blatant breach of trust.
"In my view the seriousness of the blatant breach, the amount of money involved and the length of time the beneficiaries have been deprived of the funds, outweighs all those factors in favour of granting an allowance or developer's fee for Ms Adlam."
A court ruling in 2008 had suspended Adlam as a trustee but Judge Coxhead ordered that she be removed from the trust.
Adlam's lawyer Dan Hughes told the Rotorua Daily Post he had been instructed to lodge an appeal in the next few days.
"We are of the view that there a number of appealable grounds and we will be pursuing these through the Maori Appellate Court," he said.
"Given the matter will shortly be back before the court it is inappropriate for me to say anymore than that for now."
In 2008, Adlam was suspended by the Maori Land Court as a trustee of the Savage Papakainga Land Trust after she admitted taking trust funds for her own use.
She was also convicted of 24 charges of tax evasion and was ordered to pay Inland Revenue $133,000 and fined $75,000 in 2012.
