Shadow Assistant Treasurer Stuart Robert has called on the Australian Securities and Investments Commission (ASIC) to launch an investigation into Greywolf Resources.
Dozens of Australians lost their hard-earned savings by investing in the purported mining exploration business, which was said to have tenements and leases for land containing precious gems, gold, coal, and other minerals.
Mr Robert's calls were backed by Finance Minister Katy Gallagher, who said Assistant Treasurer Stephen Jones was looking at the issue.
A Four Corners story exposed Greywolf's history of making false promises and misleading claims to convince people to invest.
Mr Robert had bought shares in the company, which gifted him wine and handbags between 2010 and 2012.
Internal Greywolf documents also revealed a range of contact between the company, Mr Robert and his office.
The company's former chief financial officer Daniel Flett said that contact included "multiple phone calls, emails [and] meetings".
When Mr Robert was questioned by host Stan Grant on Thursday night's Q+A program, he said he had not been close to the company.
He repeated what he told Four Corners: that he had never used his position as a politician to advocate for the company.
"I didn't do anything for them," Mr Robert said.
"I was not aware of any of the company's operations. I purchased shares and lost them all. It's that simple."
When Grant suggested Mr Robert bought 5 million shares he denied it, but also declined to say how much he paid for the shares.
"I purchased shares and wrote them off before coming into the ministry, " he said.
"I informed ABC Four Corners of that before the show went to air. I note that part didn't go to air."
Four Corners had included Mr Robert's response that he had disposed of the shares in 2018 for "zero dividend and zero capital gain".
The MP's office had sent an updated statement to the program specifying that he had disposed of the shares at a loss. This update was received after Four Corners' production deadline had passed.
What did go to air was that Australians had invested around $7 million into the company, with many having lost large amounts of their savings, and that ASIC had said there was "insufficient evidence" to act on multiple complaints.
ASIC told Four Corners it had acted on one complaint of Greywolf Resources not keeping proper financial records but decided that on other allegations made against the company "no further action would be taken".
One person who complained to ASIC is Lorraine Fitzjohn, who told Q+A that not only did she invest, but her entire family did as well, to the tune of about $180,000.
Ms Fitzjohn said she and her husband did their due diligence but it did not stop her and members of her family from losing big.
"We had an accountant look at them and thought we had done all the research, so we bought them and I wanted to share this opportunity with my family," she said.
Ms Fitzjohn said ASIC had done nothing about her complaint.
That statement sparked calls for an investigation by Finance Minister Katy Gallagher and Mr Robert.
"You made a complaint to ASIC and ASIC should be able to respond to you," Senator Gallagher said.
"I know the Assistant Treasurer has also sought briefings on this as well, so the government is having a look at it."
"It's terrible what happened to you," Mr Robert said.
He added he would welcome an investigation as an "aggrieved investor".
"ASIC should investigate because, prima facie, you cannot deal in a security to a retail investor without having an Australian financial services licence that has retail investors, has generic product advice, and has dealing in a security," he said.
