The Russian police conducted a raid on a property company owned by the wife of Moscow's former mayor, as part of an investigation into suspected embezzlement and misuse of city funds related to a $440 million land deal. This raid on Inteko, a property developer, marks the beginning of scrutiny on the business empire of Yelena Baturina, the wife of ousted Moscow mayor Yuri Luzhkov. According to an employee of Inteko, OMON riot police and individuals in civilian clothing arrived at the office and took the management away. The police also conducted raids on Bank of Moscow and the homes of its directors as part of an embezzlement probe. Authorities suspect employees at Bank of Moscow and Premiere Estate of using a 13 billion roubles ($444 million) loan to embezzle funds that eventually ended up in Baturina's personal account. Luzhkov was removed last fall and Mayor Sergei Sobyanin, an ally of Prime Minister Vladimir Putin, was appointed, leading to capital outflows from Russia and a weakened rouble. This also resulted in changes in ownership of assets controlled by the city, such as the Bank of Moscow, which state-controlled VTB is trying to acquire. Baturina, the president of Inteko with a controlling stake, was involved in a probe last December regarding a 13 billion rouble loan used to purchase land from her debt-ridden company. However, neither Inteko nor Baturina were named as suspects and there was no implication of wrongdoing, as the money was received through a legitimate land deal. Baturina criticized the raid as an attempt to pressure her, stating that there are no criminal cases against Inteko or its employees. Inteko spokesman Gennady Terebkov also denied any basis for such cases. Baturina, whose fortune is estimated at $1.1 billion, and Luzhkov have faced corruption accusations, but both deny them. Businessmen claim corruption is rampant in the construction sector, which is influenced by decisions made in the mayor's office. Luzhkov denies that his wife received special treatment during his time as Moscow's leader. The deployment of riot police to search Baturina's company suggests her empire is under attack from powerful groups following Luzhkov's challenge to Kremlin chief Dmitry Medvedev. Challenging the leadership of the Kremlin can be extremely risky for wealthy individuals in Russia, as they often end up losing their assets, being prosecuted, and forced to flee the country. Despite President Medvedev's promises to enhance the business environment and protect property rights, many investors believe that the main obstacle for doing business in Russia is the inconsistency of the legal system.