The Australian television star, who became the sole director of Peace For The Children in December last year when co-founder Grant Hilton was forced to quit, will have to close down the charity and transfer it to a new company after it was found guilty of unlawful fundraising.
According to The Courier-Mail, the charity falsely claimed on its website to be a registered overseas aid fund, but an audit found that less than 25% of its income was directed towards charitable projects.
Zaetta recently pleaded not guilty to charges of obstructing police and being a public nuisance after being arrested at a Gold Coast nightclub. The case was adjourned until this week.
She later revealed that the experience was very "upsetting" and insisted that she was innocent.
In 2009, the Who Dares Wins presenter cleared her name in a lawsuit against a Sydney newspaper after it claimed that she had sex with soldiers in Afghanistan while on an entertainment tour.