Multi-million dollar fraudster Ken Anderson has been released from prison.

Lane Walker Rudkin fraudster Ken Anderson is out of prison after serving just over two years for the firm's $100 million collapse.

His release has angered former workers, who were unaware he had been granted parole.

Kenneth James Anderson was sentenced to six years behind bars for defrauding Westpac Bank.

His dealings with the bank involved loans totalling $100 million and left the bank with losses of $70 million when his company Lane Walker Rudkin (LWR) failed.

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From 2006 to 2009 he sent 36 financial statements to Westpac, all of which falsely indicated LWR was in good financial health. He was sentenced to six years imprisonment on November 25, 2013.

The New Zealand Parole Board report shows Anderson was released from prison on January 25 under strict conditions.

He became eligible for parole on November 26, 2015. The board released him after his second bid for parole.

The conditions meant Anderson must reside at an undisclosed address, which he is not allowed to leave without prior approval, and he may not do any paid, unpaid or voluntary work without a probation officer's permission.

Anderson indicated he had no interest in getting a job on release.

The board decided that if released with parole conditions, particularly those preventing him working in and managing any financial enterprise, Anderson would not pose an undue risk to the community.

First Union southern region secretary Paul Watson was dismayed Anderson had served just over two years.

He thought the prison term imposed in 2013 was light. At court, his defence argued for a starting point of between seven and nine years.

"His fraudulent activity created the circumstance where hundreds of people with years and years of service were facing unemployment," Watson said.

Considering the time and money that went into investigating operations at LWR, one would have expected Anderson to do his time in prison, Taylor said.

"It raises serious questions around when there is serious white collar crime of this nature...that a person can get off with half his sentence served.

"He created a lot of heartache for people in a lot of ways," Watson said.

Jack Taylor worked for LWR for 18 years and was the National Distribution Union's head delegate on site.

He said Anderson's early release was "pretty hard to swallow" and "very disappointing".

Taylor recalled LWR going into receivership in 2009, being one of the first to lose his job along with more than 100 other employees.

"It was very distressing for the people and my role was to get them into jobs," Taylor said.

He recalled speaking to Anderson during LWR's downfall.

"He said, 'Don't worry about it, I've just got a small issue with the bank'," Taylor said.

A Serious Fraud Office (SFO) investigation, which resulted in Anderson facing 82 charges, started in September 2009, after LWR's receivers raised concerns.

Investigators trawled the clothing firm's records to reconstruct the company's financial history over a three-year period.

The SFO alleged Anderson fabricated financial documents to obtain, and keep, loans with Westpac.

It alleged Anderson used fabricated documents to obtain funds under a letter of credit provided by Westpac.

Anderson pleaded guilty to four representative charges on October 14, 2013.