Police arrested the owners of Arck Limited Liability Partnership, Kathryn Clark and Richard Clay, following the allegations and they have since been released on bail.
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Kathryn Clark and Richard Clay
Evidence has been found which suggests Mrs Clark may have tried to falsify bank statements to show Arck had £13.7 million in an account – which actually contained only £25.90.
Arck, based at the Triangle, Enterprise Way, on the NG2 business park, has been placed in compulsory liquidation to freeze its assets.
And the Financial Services Authority (FSA) has also suspended some of the activities of pension firm HD Administrators, which is based at the same address as Arck and has Mrs Clark as a director.
A statement released by the FSA says Mrs Clark did not tell investors in HD Administrators that she was also an executive at Arck, or about the "significant financial benefit" she gained from it.
She was arrested on suspicion of fraud by false representation and money laundering.
The statement adds: "Mrs Clark appears to have received, circulated or been involved in the provision of forged bank statements purporting to relate to Arck General Client account.
"The FSA considers that Mrs Clark's roles in Arck LLP and HDA give rise to a conflict of interest. These circumstances call into question Mrs Clark's fitness and propriety (honesty, integrity and reputation)."
The FSA also claims Mr Clay sent an email to financial advisers acting for investors in November which included a bank statement forwarded to him by Mrs Clark.
It says: "This statement purportedly showed the balance in Arck's general client account at Yorkshire Bank to be £13,750,000 as at 30 September 2011.
"In fact, at this date, the account held a balance of £25.90."
It is not known exactly how many people invested with Arck, but the pension scheme run by HD Administrators has 422 members.
The FSA notice says Arck is facing legal action by investors alleging they have lost £20 million. It says Mrs Clark has received more than £360,000 from Arck since 2006.
No-one was at the company's headquarters when the Post called. E-mails to the company bounce back to the sender and no telephone number appears to be listed on the internet.
Letter boxes at the building were secured shut with screws and a winding up petition against HD Administrators was stuck to the front door.
According to Companies House records, Mr Clay is of Station Road, Bottesford, and Mrs Clark is of Village Street, Edwalton.
A police spokesman said: "Notts Police can confirm it is investigating allegations of fraud related to the activities of Arck LLP.
"Two people, a 47-year-old man and a 49-year-old woman, were arrested in connection with this inquiry on March 2.
"They have been interviewed by detectives and bailed pending further inquiries."
A spokesman for the FSA said: "Following the arrest of two individuals by Notts Police on March 2, the FSA suspended HD Administrators' permissions to carry on regulated activities altogether, and froze its assets.
"Our investigation, along with the ongoing fraud investigation by the police means that there are considerable limitations placed on us regarding what we are able to say publicly. The FSA is continuing to work closely with Notts Police to assist their inquiries."
A notice on the Insolvency Service website says Arck was registered in 2006. It adds: "Once all contact details of investors have been verified the official receiver will be calling a meeting of creditors to appoint an insolvency practitioner as liquidator who will be responsible for realising assets and making payments to creditors. Investors in Arck LLP will need to provide the official receiver with details of their investment so the relevant information can be sent to them."
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