The state has opened an investigation into the financing of Wild West World.

The office of the Kansas Securities Commissioner says the investigation will focus on whether personal loans were used legally by owner Tom Etheredge.

Rick Flemming, the general council for the office, told KAKE News that this type of investigation is no surprise.

"When a deal this big goes south... we need to ask questions like where they got the investors money, how it was used, and things of that nature," said Flemming.

Flemming says his office will focus on the capital raised and if securities laws were followed. Throughout the course of this investigation, state investigators will be allowed to collect a wide range of documents, including the financial statements that were drawn up when loans were made.

Etheredge was convicted and spent more than 4 years in jail in the 1980's for security fraud.

Flemming says they are not jumping to any conclusions and are performing a normal investigation for a case like this.

"It's not like we're coming into Wichita with our guns blazing or our six shooters pulled - we are just trying to be prudent and looking into this situation with Wild West World."