Russian investigators are searching the offices of a company controlled by the Defense Ministry.
The Russian Investigative Committee says it has opened five criminal cases against Oboronservis.
Unidentified officials at the firm are suspected of causing $100 million worth of budget losses through fraudulent property and share sales.
Defense Minister Anatoly Serdyukov has reportedly arrived at the company's office to oversee searches.
Interfax quoted a police source as saying two suspects have been taken into custody.
Oboronservis was established in its current form by a Kremlin decree in 2008 as part of a large-scale reform of the Russian military. Its operations range from weapons maintenance to agriculture and publishing.
The Russian Investigative Committee says it has opened five criminal cases against Oboronservis.
Unidentified officials at the firm are suspected of causing $100 million worth of budget losses through fraudulent property and share sales.
Defense Minister Anatoly Serdyukov has reportedly arrived at the company's office to oversee searches.
Interfax quoted a police source as saying two suspects have been taken into custody.
Oboronservis was established in its current form by a Kremlin decree in 2008 as part of a large-scale reform of the Russian military. Its operations range from weapons maintenance to agriculture and publishing.