John Adams was a partner at AMS Ivanhoe Lawyers in Melbourne and died suddenly last week.
Partner Shane Maguire said the firm noticed concerns following his death and reported them to the Victorian Legal Services Board.
"We have identified a number of concerns in relation to mortgage investments he had arranged," Mr Maguire said.
"We are not in a position to make any further comment about this matter at this time."
The Victorian Legal Services Board said it was aware of allegations of misappropriation of investment funds by Mr Adams.
"We are undertaking a preliminary assessment of the allegations, including liaising with the law practice and relevant third parties," the legal watchdog said in a statement.
A profile of Mr Adams on the law firm's website claims his work included advising on business structures, trusts, liquor and gaming licensing, sport, taxation, wills and estate planning, conveyancing and probate.
"John's approach is professional and friendly," it states.
"He provides no nonsense, plain English explanations, demystifying the law so that his clients are fully aware of the risks and available options."
Anyone who believes they may have suffered a financial loss as a result of investing with Mr Adams has been asked to contact the Victorian Legal Services Board.
The Herald Sun newspaper has reported the Victorian Bookmakers' Association has $1.8 million at risk and individual bookmakers also have millions of dollars entrusted with the law firm.
The Victorian Bookmakers' Association has been contacted for comment.
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