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.
Based on reporting by AFP and Interfax