The Big Society Network, launched as part of a flagship scheme by David Cameron in 2010, is reportedly being investigated over the misuse of government funds.
It is said the organisation was given at least £2.5 million of National Lottery funding and public-sector grants - but is now under scrutiny by the Charity Commission, reports the Independent.
There are also claims that government grant-awarding bodies were pressured into handing over cash to the organisation.
More top news
A supermarket price war and fierce competition across the rest of the high street has seen shop prices slumped by a record level last month.
The PM urged Tory MPs not to side with Jeremy Corbyn by opposing British airstrikes against Islamic State in Syria, ahead of a Commons vote.
Armed police have taken part in a dramatic training exercise aimed at recreating the chaos of a Paris-style terror attack.