Police and trading standards officers are investigating claims a bogus Scottish college has taken tens of thousands of pounds from overseas students for courses that do not exist.

The inquiry was launched after Strathclyde Police were contacted by young people from as far afield as Colombia, Venezuela, Iran, and Iraq, who arrived in Glasgow to attend English language courses at the so-called Kelvin Business School. The students, who paid between £1000 and £6000 each after signing up online, had gone to the school's address at Templeton Business Centre but found a locked and empty office.

Centre owner Credential Holdings said school director David Morrison disappeared three months ago owing nearly £2000 rent. The locks had been changed to prevent him gaining access.

A former member of the staff also told The Herald he had been offered £15 an hour to teach a business course to foreign students but left last month after Mr Morrison vanished, owing him about £2000.

According to Companies House records, Mr Morrison, 30, is sole director of Kelvin Business School and the company secretary is his girlfriend, Miss Jin Wang, who is listed as a shareholder.

Their most recent home address is given as a flat in a Victorian terrace in the west end of Glasgow. Last night, however, a neighbour said they had not been seen there for about a year and Mr Morrison could not be contacted by The Herald.

The school website states it is "a leading teaching and research institution" which offers MBA, MSc, HND and HNC qualifications. There is no evidence such qualifications have been taught at the school, whose motto is "Make it Real, Make it KBS".

Despite concerns about the integrity of the courses first being raised two years ago by the Scottish Qualifications Authority to trading standards officers, the school still features on a list of approved providers of English-language courses on the website of the Department for Education and Skills in London.

The DfES declined to comment but a spokesman for the Home Office said that, from next year, it would be mandatory for those on the list to be affiliated to a recognised independent body.

The Association of Scotland's Colleges, which represents college principals, has now demanded an urgent overhaul of the regulations governing privately run colleges and said a new list should be drawn up and administered by the Scottish Executive.

In the past, it has also raised fears some companies could be trading as education providers as a way of trafficking illegal immigrants into Scotland and equipping them with visas. Neil Cuthbert, public affairs adviser, said: "If you want to open a butcher's shop in Scotland, you have to have a licence, but it seems if you want to open a college, there is nothing to stop you.

"This is very damaging to the college sector in Scotland."