A Tokyo hospital director was arrested Tuesday on suspicion of defrauding a company executive after falsely diagnosing him with a sexually transmitted disease, police said.

Michinari Hayashi, 69, head of Shinjuku Central Clinic, allegedly swindled about ¥26,000 in total from the executive in his 60s from Kokubunji, Tokyo, by falsely diagnosing him as testing positive for chlamydia following a blood test. He then sold him medicine more than a dozen times between September and December 2012 to treat the disease.

Hayashi has denied the allegation.

According to investigative sources, he told the place: "It is wrong. I will explain it later."

After seeing no improvement in his health, the company executive later consulted another doctor and was told in December 2012 that he did not have chlamydia.

In April 2014 he filed a criminal complaint against the hospital for fraud.

Two other people have also filed complaints, while several men, including the company executive and a restaurant worker in his 40s, have filed civil lawsuits against Hayashi demanding compensation.

The Supreme Court upheld an order last February for Hayashi to compensate the company executive, and last June it ruled he should compensate the restaurant worker, who was falsely diagnosed with chlamydia in October 2012.