Mr Milne was sentenced after being found guilty by a jury following an eight-day trial in the Perth District Court.
He is the second person sentenced over the carpet company’s fraudulent activities.
Mr Milne was acquitted on a second charge of fraudulently obtaining a temporary overdraft facility of $150,000 from the NAB in April 2000.
The Australian Securities and Investments Commission alleged that Mr Milne assisted Allied director Michael Simich obtain the overdraft facility of $176,000 by providing false information to the NAB, which the bank relied upon in granting the facility.
The resulting funds were used to maintain capital, as well as interest payments to investors, as part of an illegal investment scheme operated by Mr Simich. ASIC did not allege that Mr Milne was knowingly concerned in the fraudulent investment scheme.
Allied was in the business of laying and supplying carpet and was put into liquidation in 2000 after having defrauded investors of about $18 million.