Johannesburg - The Estate Agency Affairs Board (EAAB) said on Friday it had reported "the strong suspicion of criminal wrongdoing" at Constantia Sectional Title Management (CSTM) to the police.
The EAAB said it believed a search and seizure warrant had been executed.
It had also started more urgent proceedings in the South Gauteng High Court seeking an interdict against CSTM.
The EAAB - after an anonymous tipoff regarding alleged improprieties - had started an inspection of CSTM in March with the assistance of Pasco Risk Management.
It then instituted proceedings against CSTM in the South Gauteng High Court in April to interdict CSTM from continuing to operate as an estate agent, and to appoint a curator to control and administer the trust accounts of CSTM.
This application was opposed by CSTM.
However, a settlement was concluded between the parties on April 20 in terms of which it was agreed that an independent chartered accountant be appointed to monitor all the transactions on the trust accounts of CSTM, and that investigations initiated by the EAAB would continue.
The EAAB said it was not satisfied with the results of these investigations or that the affairs of CSTM were in order and compliant with legal requirements, and it therefore approached the police.
Earlier this year the EAAB refused to issue Wendy Machanik Properties with a licence after an investigation it commissioned found R25.2m went missing from trust accounts between March 2007 and February last year.
A high court order prevented Machanik from working as an estate agent and placed her trust accounts under the control of a curator.