Prosecutors on Monday arrested the former chief of a scandal-mired nationalist school operator and his wife for allegedly defrauding the central government of public subsidies for their business.

The arrest of Yasunori Kagoike, 64, former chief of Moritomo Gakuen, and wife, Junko, 60, follows the scandal over a sweetheart land deal allegedly linked to Prime Minister Shinzo Abe.

Abe's wife, Akie, was honorary principal of an elementary school Moritomo Gakuen intended to open in April.