By Rachel Wait

A large number of top Premiership footballers are reported to have lost millions of pounds after an investment scheme which was linked to a former star collapsed, according to the Daily Mail.

Several household names are said to have handed over money after they were promised a return of 20% on their capital each month. But the scheme disintegrated late last year, leaving players in limbo about what has happened to their money.

Michael McIndoe, who has previously played for Wolverhampton Wanderers and Coventry City, is said to have approached potential investors about the scheme, although he is also said not to have done anything wrong.

He became director of several businesses in 2011, one of which said it would give footballers exclusive access to nightclubs and private jets.

The Mail reports that as part of the scheme, syndicates were established across the country. On the first day of each month, one nominated member of each syndicate would travel to a hotel in London to collect the payouts. However, since November last year, the payouts have stopped and Mr McIndoe has also disappeared.

A source was quoted in the Mail as saying the scheme "was sold to people as a guaranteed-return investment scheme", adding that "you got 20% back each month and could withdraw your money at any time". This meant if you invested £100,000, you got £20,000 back each month.

There are now concerns the investments were made in a Ponzi-style scheme in which money from new investors is redistributed to existing members instead of being invested. As a result, these schemes eventually collapse.