Police are expanding their search in Merimbula to locate more human remains associated with missing financial advisor Melissa Caddick.

Beachgoers reported bones in the sand near Merimbula on Saturday and forensic testing is currently underway to confirm whether the bones are human.

Police sources told The Daily Telegraph that a part of a human torso and stomach flesh, including a belly button, has also been found.

Police aren’t ruling whether Caddick was murdered or she committed suicide, as there is still information missing.

However, Assistant Commissioner Michael Willing believes that Caddick could’ve been on the run before she passed.

“Could Melissa Caddick have been on the run before her death? Absolutely she could have been,” Assistant Commissioner Michael Willing said. “It’s a distinct possibility. All the circumstances around her disappearance are now in some way going to be reinvestigated.

“Every feasible possibility will be explored. The drift modelling is not enough to give a coroner a complete picture. Ms Caddick may have entered the water at Dover Heights or she may have entered the water somewhere else, which raises a lot of other possible scenarios so we are keeping an open mind.”

Police are now preparing a report for the coroner and cannot rule out the possibility that Cadick had accomplices that helped her get down to the South Coast in NSW.

“We can’t discount that,” Mr Willing said.

“The fact at this point is we have her remains in the form of a foot, a decomposed skeletal foot, and that’s about all.

“We don’t know how she came to be in the water or how she came to be deceased.

“If you consider the suicide angle, that’s a possibility. She has left her wallet, keys and phone and doesn’t appear to have taken any clothing with her. However, you are dealing with someone who is allegedly quite clever in covering her tracks and good at deception. There are many hypotheses that span the spectrum.”

Investors who were also conned out of their life savings due to Caddick are now considering suing her accountants and auditors, as her scam took $25 million from 60 investors to fund her lifestyle.

The investors are planning on suing the accountants and auditors as they signed off on years of fake documents, as new information has found that Caddick never held an Australian Financial Services Licence.