Former lawmaker Yasutada Ono pleaded not guilty Wednesday over a high-profile political funds scandal involving factions of the ruling Liberal Democratic Party.

The first hearing for Ono, 66, a former member of the House of Councilors, the upper chamber of the Diet, Japan's parliament, and secretary Yoshiko Iwata, 62, was held at the Tokyo District Court.

"I deeply apologize for causing great political distrust to the people," Ono said before entering his plea. But he added: "There was no collusion of false statements. I am morally responsible, but I have never committed a crime."

According to the indictment, Ono and Iwata failed to include a total of ¥51 million in funds kicked back from the now-defunct LDP faction linked to former Prime Minister Shinzo Abe, in his own fund management organization's political funds reports for 2018 to 2022.

Ono was indicted without arrest on charges of violating the political funds control law and left the party in January 2024. After the indictment, he held a news conference in the Diet and claimed his innocence, saying he had left everything to his office and did nothing suspicious.

Ono did not run in this year's Upper House election, held July 20.

According to informed sources, Iwata explained to acquaintances that she just followed the faction's order with no awareness of false entries.

In the scandal, criminal cases have been established for 12 people including four lawmakers. Of the four, Ono is the first who has appeared in court. The amount of his unreported funds is larger than those of the other three.

Of lawmakers involved in the scandal, Yoshitaka Ikeda, 59, a former member of the House of Representatives, the lower chamber, and his secretary were arrested and indicted for failing to record ¥48 million in political funds reports. The date for their first hearing has not been set.

The first trials of two accountants from the former Abe faction and the now-defunct faction headed by former Secretary-General Toshihiro Nikai ended with suspended sentences, which have already become final.