The former chairman of the Australian Wheat Board has avoided a jail term over a $12 million fraud.

Clinton Condon, 69, from the Gold Coast, pleaded guilty in the Victorian County Court to obtaining financial advantage by deception, and misleading auditors.

The charges relate to when he was executive director of a grain and wool trading company 11 years ago.

Bustan International collapsed in 2001 with losses of more than $12.5 million.

Condon was handed a two year jail sentence, wholly suspended, due to the delay in the case.

He was ordered to pay a $12,000 fine.