Two Isle of Man-registered companies linked to a collapsed asset management firm that is currently subject to a major fraud inquiry have applied to be wound up.

City of London Police announced in February this year that it was investigating the family-run Seventy Ninth Group in connection with allegations of suspected widespread fraud.

The Southport-based group was placed in administration in April.

It denies any wrongdoing.

Around 3,700 investors, including dozens who banked in the Isle of Man, could potentially face significant financial losses following the company’s collapse - and for many it could mean the loss of their life savings.

Now two Isle of Man subsidiaries, Seventy Ninth Air (IoM) Ltd and Seventy Ninth Air Two Ltd, have presented a petition for the winding up of the companies.

Gordon Wilson of FRP Advisory (Isle of Man) and Jeremy Woodside of administrators Quantuma were appointed provisional liquidators by court order on October 29.

They have the powers to maintain and manage a 2008 Learjet 45XR and 2005 Cirrus SR22 GTS-G2 aircraft owned by the companies.

The winding up petition will be heard in the high court on December 4.

In an update to investors, the joint administrators say their findings to date indicate the 79th Group investment scheme was ‘likely operated as a Ponzi scheme’.

Worldwide freezing orders and injunctions against the directors and their connected parties were granted by the High Court in London on October 29.

It is estimated that more than £200m is owed to investors.

Seventy Ninth Group offered loan notes - also known as mini bonds - to investors with the promise of a high interest return over a fixed period.

Investors were contacted by various third-party introducers who offering the opportunity to invest with fixed returns between 12% for a minimum £10,000 investment and 15% for a minimum £25,000 investment.

The Seventy Ninth Group - named after the 79th element in the periodic table, gold - told investors that funds were used for real estate, wealth and aviation investments as well as mining for natural resources in countries such as Canada and Guinea.

Four people have been arrested and released on police bail while inquiries continue.

A large amount of cash, luxury watches and jewellery was seized during searches of properties.

In their update, the joint administrators said the group, run by David Webster and his sons Jake and Curtis Webster with Natalie Bellis as CEO, operated ‘a vast network of companies extending to over 100 companies in over 10 jurisdictions’.

They said: ‘To date over 130 different bank accounts have been identified with large sums of investor monies being transferred between accounts. Our investigations are ongoing but it's unclear at this stage what purpose and functions these companies and accounts served.

‘Current investigations have not identified any assets acquired by the 79th Group loan note companies into which investors invested their funds (in excess of £150m appears to have been invested).’

No assets identified to date can deliver the advertised returns to investors as marketed, they said, adding: ‘Our findings to date indicate the 79th Group investment scheme was likely operated as a Ponzi scheme.’

An informal support network of affected investors now has more than 600 members, of whom in excess of 60 banked through the Isle of Man.

One investor, who did not wish to give their name, said: ‘The vast majority of investors - including those who banked through the Isle of Man - are inexperienced, unsophisticated investors who have now lost their life savings.

‘Within our group there are victims with heartbreaking stories - fathers who feel guilt and shame about the loss of their families financial security, husbands who wanted to care for terminally ill partners, lost funds for children's education, retirees who have lost money they worked lifetimes for.

‘The damage this has done to people's lives is immense.’

Seventy Ninth Air (IoM) Ltd and Seventy Ninth Air Two Ltd were both registered in the Isle of Man in January last year.

In their winding up petition, the directors state that the companies are unable to pay their debts.

They state: ‘The key assets of the companies are two aircraft originally financed through funding from other companies within common ownership in England and Wales. This funding took the form of loans.

‘One of the English companies has been placed into administration, and the administrators have made claims against the companies under the loan documentation.

‘Whilst there is a dispute of fact over the level of indebtedness and the manner in which such indebtedness should be pursued, it is nonetheless likely that the companies will owe something to that entity, and it is unlikely the companies will have funds available to discharge this indebtedness.’

The directors say changes affecting the ultimate beneficial owners of the structure have resulted in the companies being unable to access funding for the continued operation and maintenance of the aircraft - and the companies owe money to various services providers as a result.

They say they had explored options to sell the aircraft to discharge the debts but there were difficulties with doing so.