Michigan State Police and the FBI raided a Detroit residence owned by former Mayor Kwame Kilpatrick's uncle, Raymond Cheeks.
State police spokeswoman Tiffany Brown tells the Detroit Free Press Tuesday's raid was part of an ongoing embezzlement probe.
It came a day before a hearing in a federal racketeering conspiracy case against Kilpatrick. Lawyers in the case were to attend a pretrial conference Wednesday in U.S. District Court in Detroit.
Cheeks ran the city's Neighborhood City Halls department during Kilpatrick's tenure as mayor.
The Detroit News says an audit found misspending and possible theft in a $300,000 Angels' Night and Motor City Makeover fund when it was overseen by the mayor's uncle.
A message seeking comment was left Wednesday by The Associated Press at a phone listing for Cheeks.