Investors in Aorangi Securities, one of the funds caught up in the Hubbard financial collapse, could lose nearly two thirds of their investment if a court case goes against them.
Statutory managers Grant Thornton are warning investors the outcome could have a severe impact on returns.
The firm says Alan Hubbard's widow Jean Hubbard is claiming $60 million of the $96 million in Aorangi Securities assets.
Mrs Hubbard claims the funds were never transferred to Aorangi's ownership and therefore belong to her personally and to her late husband's estate.
Statutory managers are also negotiating to recover $39 million worth of loans that are either in dispute or at risk.
Meanwhile, the statutory managers have told investors in Hubbard Management Funds that claims against the $47 million worth of assets in the fund have risen to $7 million.
Among the claimants are Mrs Hubbard and ASB Bank. Grant Thornton says there is not enough money currently to pay investors in either funds.
Aorangi Securities and Hubbard Management Funds were placed into statutory management two years ago owing investors $96 million and $82 million respectively.