The serious fraud office today announced it had commenced an investigation into possible offending associated with the collapse of Clegg & Co Finance Limited.
The company went into receivership in October 2007 owing $15m.
There are concerns regarding the amounts the company was lending to related parties.
Its trust deed imposed a 5% limit on such lending, but it that appears at the time of receivership about three times that amount was lent to related parties.
Finance companies borrow money from the public and manage it according to the terms of a deed entered into with a trustee company.
If a finance company lends in breach of the trust deed restrictions, it might constitute an offence under the crimes act, punishable by up to seven years imprisonment.
"This is the sixth finance company whose affairs are now under investigation by the Serious Fraud Office. There investigations are complex, and this one, like the others, is likely to take a substantial amount of time," Mr Liddell concluded.