Investors in Alan Hubbard's funds and trusts under statutory management are likely to get only 60% of their money back.
The funds were placed in statutory management earlier this year.
In their latest report, the statutory managers of Hubbard Management Funds, Aorangi Securities and several charitable trusts say there appears to be a shortfall of cash.
The managers, from Grant Thornton, say they have serious concerns about the quality of reporting by Mr Hubbard in statements issued to investors.
They say documentation given to them shows the funds are worth $82 million, but after meticulous investigation there appears to be a shortfall of about $19 million.
As a result, investors face losses of about 40%.
The managers say investors face delays of several months before getting any money back.