The Serious Fraud Office has laid charges against the founding directors of Capital + Merchant Finance.
The company was placed into receivership in November 2007 owing 7000 investors $167 million.
The finance company's founding directors and owners, Neal Medhurst Nicholls and Wayne Leslie Douglas, were arrested on Thursday.
They face six charges relating to almost $14.5 million worth of lending to related parties dating back to 2002.
