Prosecutors are set to establish a case against a former Liberal Democratic Party lawmaker and two others on suspicion of embezzlement disguised as a political donation, according to informed sources.

Yukihiro Yoshida, 42, who lost his Diet seat in the House of Representatives election in November, and two former executives of the Japan Dental Association allegedly misappropriated tens of millions of yen earmarked as a donation to Yoshida from the association's political arm in summer 2002.

The Tokyo District Public Prosecutor's Office plans to take action against the dentist-turned-lawmaker and the two others -- Sadao Usuda, 73, a former chairman of the association, and Hirotake Uchida, 63, its former director -- shortly after Sunday's House of Councilors election, according to the sources.