The charges related to the same allegations as the civil proceedings announced earlier in the week and were laid in the Wellington District Court.
Graham, former chairman of Lombard Finance, was a former justice minister, minister in charge of treaty negotiations and attorney-general in the National government of the 1990s, and Jeffries was justice and transport minister in the preceding Labour government.
The charges carry a maximum penalty of five years' imprisonment or fines of up to $300,000, the commission said in a statement. It acknowledged the assistance of PricewaterhouseCoopers, the Lombard Finance receivers, with the investigation.
The directors have said they did not accept the allegations of the commission and would be defending all the proceedings.
The commission alleged Lombard Finance and Investments' offer documents and advertisements misled investors by misrepresenting the investment risks, especially in relation to liquidity, the quality of the loan book, adherence to credit policies and the company's overall financial position, chairwoman Jane Diplock previously said.
Lombard Finance went into receivership in April 2008, owing about $127 million to 4400 investors. According to the receivers, it was likely secured debenture holders would receive less than 30% of their investment back. Unsecured creditors were likely to receive no return.
