The three-stage pilot - which involved "military style activities" and a special curriculum - launched in July, and was run by Oranga Tamariki. The first cohort had 10 young people aged 15 to 17.
The pilot concluded its three-month residential phase on 16 October. The nine-month community phase would finish in July next year.
Minister of Children Karen Chhour said in a statement while the news was disappointing, it would be naïve to think none of the pilot participants would lapse.
"I'm saddened that this young person has not taken this opportunity at a second chance," Chhour said.
"We were hopeful this would not occur, but we understand the complexities in the lives of these young people. Ultimately, what they do with these opportunities is up to them."
Chhour said she remained confident the "military-style academies" were having success, pointing out that several of the young men had left the residence with jobs lined up.
She said the pilot had been developed based on lessons from other military-style programmes in New Zealand and overseas.
"A key aspect of the programme, which makes it different from its predecessors, is the aim to ensure participants get the support they need after they have completed the residential component of the academy and returned to the community.
"Each one has a mentor who is working with them and there is intensive, tailored support for each young person."
RNZ has approached Oranga Tamariki and the police for comment.
