A former governor of the U.S. Virgin Islands and an ex-finance director in the U.S. Caribbean territory have been arrested on embezzlement charges.

Acting Attorney General Claude Walker on Tuesday announced the arrests of former Gov. John DeJongh and Julito Francis, once a director of the islands' public finance authority.

Walker alleges they used $490,000 of taxpayers' money to make improvements to DeJongh's private residence "without authority of law."

In April, DeJongh said he paid back some $200,000 to the territory for security upgrades he made to his home when he was in office. But lawmakers said it was not half of what he owed.