West Australian police have confirmed the Major Fraud Squad is investigating allegations about the federal Member for Fairfax, Clive Palmer.

Chinese mining company Citic alleges Mr Palmer spent $10 million of its money on his election campaign, with a further $2.167 million being funnelled to other areas.

The allegations centre on the alleged misuse of a fund related to operations at Cape Preston in WA's Pilbara.

The Queensland Supreme Court is set to start hearing a civil case into Citic's claim on Wednesday.

On Monday morning, Mr Palmer told Channel 7 a report in The Australian newspaper that said police in Perth had begun a preliminary investigation into claims of dishonesty linked to the case was "a complete beat-up".

However, WA's Deputy Police Commissioner Stephen Brown said police were looking into materials received from the Citic Group.

"I can confirm that we have received materials on behalf of the Citic Group and we've commenced to assess those materials to determine whether there's been any criminal activity, as part of our normal fraud investigation and assessment process, and that's the only comment I will make on that matter," he said.