A JOINT investigation into WOWfest ticket sales has been launched by police and trading standards.
The Isle of Wight Council said a number of allegations had been made.
Tickets for the cancelled event were sold directly through WOWfest, plus other outlets, including The Music Shop, which is run by some of the organisers.
WOWfest went into liquidation in July and Andrew Hunt, of insolvency company Silke and Co, said an investigation into its accounts was due to start imminently.
However, recently changes to the Licensing Act 2003 have given licensing authorities greater power to refuse or place conditions on licensing applications.
The amendment will make it easier for the Isle of Wight Council to impose tougher conditions, when appropriate.
Isle of Wight Council leader, Cllr David Pugh, said had the amendment been in place at the time of the WOWfest hearing, its licensing committee could have imposed greater conditions and potentially taken the financial circumstances of the organisers into account.