The fund was set up in 2012 by the troubled Premier Group, the company behind the New Earth Group of funds, which were wound up by the Isle of Man authority last July.
Around 3,247 investors put £292m in New Earth, most of whom are unlikely to see their money again.
Last November, Premier Group notified investors of the Eco Resources fund that it would “begin the process” of liquidating the fund citing a “lack of liquidity”. At the time, the fund had a balance of just £12,545 but owed creditors £2.7m.
A month later, the High Court in Douglas and the Isle of Man Financial Services Authority (IoMFSA) said it had appointed an inspector to find out what went wrong with Eco Resources Fund and its subsidiary EcoPlanet Bamboo.
Now the regulator is seeking a court order to officially put the company into liquidation, according to the Isle of Man Today.
“Eco Resources still has the FSA appointed controller in place but I understand the regulator has now petitioned the court to put the company into liquidation,” Premier Group joint liquidator, Craig Mitchell told the publication.
The Isle of Man regulator is also seeking the liquidation of the Premier Group (IoM) to be carried out under the supervision of the court.
EcoPlanet Bamboo created a complex corporate structure, with several companies registered in the Isle of Man and the state of Delaware in the US.
Speaking to BBC Radio 4 in April 2012, Camille Rebelo, one of the co-founders of EcoPlanet Bamboo, claimed that an investment of $50,000 would see a return of 500% over 15 years.
“It’s a guaranteed return to the investor,” she said at the time.
Nearly all the investors who put their money in Eco Resources would have done so on the recommendation of a financial adviser.