The Crown Office has ordered a criminal investigation into Craig Whyte's takeover of Rangers and the subsequent financial management of the club.
Rangers went into administration on February 14 and were consigned to liquidation earlier this month.
A statement read: "The Crown Office has instructed Strathclyde Police to conduct a criminal investigation into the acquisition of Rangers Football Club in May 2011 and the subsequent financial management of the club."
The statement continued: "The investigation into alleged criminality follows a preliminary police examination of information passed to them in February this year by the club administrators.
"The Procurator Fiscal for the West of Scotland will now work with Strathclyde Police to fully investigate the acquisition and financial management of Rangers Football Club and any related reports of alleged criminality during that process."
Whyte bought an 85% shareholding in Rangers for £1 from the Murray Group and made several pledges in terms of future investment and paying off the club's bank debt.
The club was forced into administration following court action from Her Majesty's Revenue and Customs.
Immediately after being appointed, administrators Duff and Phelps announced the club had failed to pay about ?9million in PAYE and VAT since the takeover.
They soon revealed that the club had paid off Lloyds Banking Group from a ?24.4million capital injection from investment firm Ticketus, which was secured on the back of future season ticket sales.
The debt to HMRC was most recently listed at more than £21million in the failed Company Voluntary Arrangement proposal to creditors.