(Photo: 163.com)

Leaders of a movement identifying itself as the "Taiwan civil government" (TCG) have been arrested for suspected fraud and money laundering.

The illegal proceeds of their suspected crimes total nearly 300 million new Taiwan dollars (about 10.1 million U.S. dollars), according to a statement issued by the Taoyuan District Prosecutors Office on Friday.

The prosecutors found the TCG was selling its own ID cards and raising funds from members with promised dividends.

Nine guns and 135 million new Taiwan dollars in cash were found during a search of the TCG "headquarters" and residences of its leaders on Thursday.

Prosecutors have applied for court decisions to hold three of the seven suspects in custody, including TCG leader Roger Lin and his wife.

The TCG, established in 2008, was widely criticized for claims regarding the island's relations with Japan.