Failed student business to be investigated

Police are investigating a Scotch College student's financial scheme that fleeced his classmates out of $185,000.

The boy invited other senior students to invest in an online fashion startup, but the business folded.

Police say a number of victims reported the matter on Wednesday and they will investigate to determine if any deception crimes have been committed.

It is believed the father of the boy at the centre of the scheme contacted investors to apologise and repay lost money.

A Scotch College spokeswoman said it was a matter for the families and individuals involved.