Kanju Sato, a former Cabinet minister and until last week a Diet member, was arrested Sunday along with his wife and another person for allegedly misappropriating some 17 million yen from the government intended as salary for one of his secretaries.

Sato's wife, Miyoko, 52, is believed to have overseen financial accounts for the 62-year-old Sato. The third person arrested by the Aichi Prefectural Police was Seiki Asada, a close associate of Sato who allegedly arranged to have his wife's name registered as the secretary.

Both Sato, who earlier in the day turned himself in to police for questioning, and his wife have denied the allegations. However, Asada, 66, has said they are true, according to the police.