Two directors sanctioned for "misleading" conduct by the corporate regulator were allowed to oversee a $124 million fund for fugitive businessman Michael Gu and are accused of helping him perpetuate one of the largest scams in Australian corporate history.

Frank Tearle and Justin Epstein were trustees of a fund used by Mr Gu's iProsperity Group to manage money raised as part of the government's Significant Investor Visa (SIV) program.