The former chief of the school operator embroiled in a scandal involving its discounted purchase of government land faced a new arrest warrant Monday for defrauding subsidies from the Osaka Prefectural Government, investigative sources said.

Yasunori Kagoike, the 64-year-old former head of Moritomo Gakuen, and his 60-year-old wife, Junko, allegedly swindled about ¥92.5 million, the sources said. The couple were indicted Monday for fraudulently obtaining subsidies from the central government.

The couple came into the spotlight earlier this year over the school operator's purchase of public land in Osaka Prefecture to open an elementary school with ties to Prime Minister Shinzo Abe's wife, Akie, a plan that has since fizzled.