The largest faction in Japan's main governing Liberal Democratic Party has decided to disband in response to a political funds scandal.

The faction once led by the late prime minister Abe Shinzo made the decision at a general meeting on Friday.

Prosecutors filed charges against the faction's chief treasurer and two lawmakers who left the faction on Friday. They arrested another lawmaker in the faction last week on January 7.

They are accused of underreporting about 4 million dollars in revenues from fundraising parties.

Former education minister Shionoya Ryu, who serves as the faction's acting leader, apologized for letting down the public, LDP supporters and party officials.

He said he deeply regrets not having done much more as the acting leader.

He made the remarks at the faction's first general meeting since investigators raided its office last month.

Shionoya briefed participants on developments in the situation and a plan to correct political funds reports of the offices of the members involved in the scandal.

Prime Minister Kishida Fumio, who is the LDP president, has announced his intention to dissolve the faction he led until recently.

Participants at the general meeting discussed their faction's future and decided to disband it.