Prosecutors plan to serve a fresh arrest warrant for subsidy fraud to former Moritomo Gakuen chief Yasunori Kagoike in connection with his steeply discounted purchase of state land in Osaka, sources close to the case said.

Kagoike, 64, was arrested last month on suspicion of defrauding the central government of subsidies. He is expected to be additionally charged for fraudulently seeking subsidies from the Osaka Prefectural Government, the sources said Friday.

Kagoike may be served the additional warrant as soon as Monday. Prosecutors are also investigating whether his wife, Junko, 60, was involved in the alleged fraud against the prefecture, the sources said.