The man is a formerly self-employed insurance and financial adviser who started tombstoning in response to blackmail from his former lover.
The couple was jointly charged on seven counts of fraudulently using a document.
The 52-year-old man was also charged with two more counts of forgery. The 35-year-old woman was charged with blackmail.
The pair started an affair in 2005. She later discovered he was married and began to blackmail him. She was convicted in 2010 of extorting $250,000 from him and sentenced to home detention.
But a year later the blackmail began again.
The adviser, who was an AFA, took out 122 insurance policies, collecting $300,000 in commission. He cancelled them after he gave the money to his ex-mistress.
He also wiped out his wife's retirement savings, of $78,000, and mortgaged the family home, which was lost.
The man was jailed last week for two years and three months and the woman for four years. The man has been ordered to pay $150,000 in reparations to his wife.
As a result of his convictions, it is unlikely the adviser will resume business. Anyone convicted of fraud in the past five years cannot be involved in the management of a financial services provider. As part of their authorisation, advisers must prove their good character, an examination that includes an assessment of any convictions.
An FMA spokeswoman said: "If an AFA is convicted under the Crimes Act for certain types of dishonesty offences, such as fraud, they become a "disqualified person" under the FSPR Act. If they become disqualified, they are obliged to notify the Registrar within 10 days of conviction and are then deregistered by the Registrar following a short process. An AFA ceases to be authorised once deregistered."
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