The corporate regulator has applied to the Federal Court to have South Perth-based Finchley Central Funds Management wound up and a liquidator appointed.
The Australian Securities and Investments Commission has started civil proceedings against unlisted company Finchley, which had previously been known as Kebbel Funds Management.
ASIC said Finchley is a responsible entity for managed investment scheme, Finchley Development Capital Funds, where there are two active trusts that have raised funds from retail investors.
One fund, The Gilead Trust, has more than 600 members which have invested in excess of $25 million that has been provided as mezzanine finance to the developer of the Gilead Retirement Resort in New South Wales.
The second fund, The Riverside Trust, has more than 300 members that have invested over $15 million which has been on-lent as mezzanine finance to the developer of the Riverside Pier Hotel in WA.
ASIC claims Finchley should be wound up after it found the company and its officers had failed to comply with their obligations under the law.
ASIC is also seeking a winding up order for both trusts and FDCF, which will allow an independent party to "assist in the protection of investors' interest".