Dr. Dre's estranged wife, Nicole Young, is being investigated by the LAPD for alleged embezzlement ... sources close to the case tell TMZ.
We're told Dre's business partner, Larry Chatman, recently went to the police and filed a report, claiming Nicole withdrew hundreds of thousands of dollars from their business account without authorization ... something Larry had previously alleged in legal letters fired off to Nicole's side in the past few weeks.
In the report to LAPD, Dre's team claims Nicole embezzled $385,029. We're told LAPD detectives are aware Larry believes Nicole is the culprit, and they're looking into it now. For the record, Dre did not file the report.
As we previously reported ... Dre's called out Nicole for 2 withdrawals -- which total the $385k -- in their divorce case. Nicole has said she had a right to the money in that corporate account because her name is on it.
If charges are brought forth from this, it's possible Nicole could do time.
Nicole's legal team has previously told us Chatman's claims against her are nothing but a smear attempt and a PR stunt as she navigates her pending divorce from Dre. Her attorneys maintain she's done nothing wrong thus far.
We've reached out to Nicole's lawyer again about the police investigation ... so far, no word back.