Authorities reportedly found 7 million yuan ($1.1 million) in cash in the home of Guo Zhenggang, deputy political commissar of the military command in Zhejiang province, according to Global People magazine in Beijing.
Guo was placed under investigation for corruption earlier this month.
His wife, Wu Fangfang, is also said to be under investigation. She is suspected of having cashed in on her husband's military connections for 1.5 billion yuan, the magazine reported.
Guo, 45, was promoted to major general in January. He was one of 14 senior military officials targeted by probes. An investigation of 16 generals suspected of corruption last year was announced two months ago.
Xu Caihou, former vice-chairman of the Central Military Commission, the nation's top military leadership body, was the highest ranking of the officers facing investigations last year.
Guo, whose father held the same rank as Xu, gained rapid promotions because of his father's connections, according to the magazine.
The case grabbed the media's attention, partly because Guo had been implicated in a failed land development scheme led by his wife.
More than 100 creditors gathered in front of the Zhejiang Military Command in Hangzhou, the provincial capital, on March 15 to demand repayment of money they had invested in a shopping mall project promoted by Wu that never materialized. It was the third protest they organized this year.
Wu reportedly collected more than 500 million yuan from about 2,000 investors since 2011 and promised to start business operations in May of that year. Construction was not completed, and the mall has never opened for business.
She later allegedly collected an additional 800 million yuan from investors based on a similar investment proposal.
The protesters gathered on the grounds where the mall was supposed to have been built - a tract of land formerly designated for military use. They said they believed Guo should also be responsible.
Wu met the protesters in an auditorium on March 15, but she was taken away after a simple reply to their demand: "I have no money to repay you."
Asked to comment on the protests, an official in the logistics department of the Zhejiang Military Command said the command is also a "victim" of Wu, the magazine reported.
Wu married Guo in December 2012, and they have a son. Both of them had a previous marriage.
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