(Corrects, recasts throughout, adds details in paragraphs 4-5)
MOSCOW, June 25 (RIA Novosti) - Russia's Federal Property Fund had its headquarters raided Monday following the arrest of two of its employees in a large-scale fraud case, police said.
"An investigation at the Russian Federal Property Fund, including searches and interrogations at a rather high level, is taking place as part of an earlier criminal case into charges of embezzlement and misuse of property," a police spokesman said.
The official said more arrests were expected later Monday.
However, the fund did not confirm any ongoing investigative activities, either in the fund's central office or in its regional offices.
"At present, no searches or arrests are being conducted," a spokesman said.
