Last week the Serious Fraud Office and Financial Markets Authority executed search warrants at various addresses, including the High St offices of Mr Kloogh's business.
No charges have been laid against Mr Kloogh. The FMA has said it has moved to secure investors' funds.
Breathe Financial is understood to have employed five people, including Mr Kloogh's daughter.
The staff have posted an update on Breathe's website, which said last week's developments were a shock.
''We collectively believe that Breathe's clients deserve our best professional efforts and we want to communicate as much information as we currently possess, to better inform you,'' the staff said.
''As we understand it, the SFO is investigating all aspects of Barry Kloogh's commercial activities, but particularly his investment activities.''
The investigation effectively froze Breathe's financial and investment services, until it was concluded, they said.
The staff said they had no information at this time about the investment side of Breathe.
''None of us are personally involved in the investment side of Breathe - that has been Barry Kloogh's sole responsibility.
''We deeply regret the current circumstances ... We intend to stand with you in the weeks ahead.''
The staff said they were now effectively suspended without pay.
The SFO and FMA have released no further details of their investigations subsequent to Thursday's actions.
An archived media statement from one of Mr Kloogh's other businesses, Debt Breaker, said he had clients in the four main centres, plus Nelson, Invercargill, Tauranga, ''and dozens of other cities and regions in New Zealand''.
The Otago Daily Times understands one Breathe investor is setting up a group of affected persons.
By law, the SFO is able to investigate only allegations of serious or complex fraud.
Companies Office records show Mr Kloogh as a present or past director of 29 entities, and a past or present shareholder in 17.
The SFO has not clarified which of Mr Kloogh's business enterprises are subject to its inquiries, but has asked potentially affected parties to contact it.
