Police have confirmed they are investigating alleged financial irregularities at the troubled Nigel Green estate agency.
The firm, based in Newton Abbot and with seven branches and 52 staff across south Devon, announced it had run into difficulties on Friday.
It was said that a slump in sales had forced it to file for administration.
There were reports that managing director Nigel Green had been taken to Ashburton Hospital after being found alone on Dartmoor.
Initially no one from the firm was willing to talk with the Advertiser. Reporters were physically ejected from the Newton Abbot branch by upset staff who said they had lost their jobs. Allegedly, they have not been paid since December.
Later, financial director Ashley Dawes confirmed that he and fellow directors, without Mr Green, were trying to mount a management buyout.
At the time of going to press that had not happened, nor had the firm found an administrator. Had it not done so by 5pm yesterday, Newton Abbot business recovery specialist Lameys would be given the right to approach the courts and have one appointed.
On Monday Mr Dawes said he had resigned as financial director, but declined to say why. At the time he maintained the business was in difficulty solely because of a collapse in house sales.
But late on Wednesday he issued a press release alleging that Nigel Green had been less than transparent in his dealings.
'I resigned as financial director of Nigel Green Property Sales and Rentals Ltd on January 28 as the managing director, Nigel Green, had not made me fully aware of the true financial position of the company. Since then, I have continued as an employee to try to secure a purchaser for the company and out of loyalty to the tremendous staff, customers and landlords.
'Upon discovery of possible irregularities within the company, myself and one of the directors notified the police. I understand that they are currently looking into the matter.
'I should stress that I had no involvement with the matters in question, nor any previous knowledge of them.
'I fully believe Paul Rutherford, Michael Hart, Richard Hart, Julie Copsey and Clare Gargan [company directors] were also unaware of the true situation within the company.'
Devon and Cornwall Constabulary's PC Baxter Provan confirmed that an investigation was under way.
Speaking from force headquarters at Middlemoor he said: 'We have had contact from a business in Newton Abbot about possible financial irregularities which are currently under investigation with the cooperation of the company. Investigating officers are also speaking with experts at the Crown Prosecution Service.'
Attempts to contact Mr Green have not been successful and no details of the alleged irregularities have been made public.
Some hope for the troubled firm has come from Michael Foundly, owner of Chamberlains Estate Agents, who has expressed interest in buying at least some of the business.
Richard Copus, spokesman for the Devon branch of the National Association of Estate Agents, said it was a sad situation.
'It is unfortunate when any estate agent goes under, particularly when so many staff jobs are put on the line,' he said. 'It is indicative of the current market. However, there are glimmers of light on the horizon.
'People with money in the bank are suddenly coming out of the woodwork and buying houses, last month was the best in my own business for a year.
'Families who sold their properties some time ago and who have been using the income on the capital to pay rent are now finding that with lower interest rates they're having to pay from the capital.'