SPOKANE, Wash. -

A Spokane-based company formed to make Blu-Ray discs is under investigation by the FBI.

The FBI searched the BlueStar Technologies offices earlier this week looking for evidence of mail fraud and wire fraud.

Investigators believe company president Erick Hansen and others defrauded investors, who were asked to buy into the Blu-Ray distribution company.

The FBI believes BlueStar was actually using investor money to pay off a settlement with investors in California. In that case, BlueStar was ordered to pay more than $600,000 for selling unqualified securities and misrepresenting facts about their business.

No criminal charges have been filed in the case so far.