of YKK undamaged by the events of November 2001, finally gained control of the LDP. While Kato and Yamasaki had failed, the reformist, anti-mainstream ideals of YKK had finally moved to the forefront of Japanese politics, providing validation for Kato and his views. Kato and Ichirō Ozawa Kato had a sometimes difficult relationship with fellow LDP reformer Ichirō Ozawa, a strong advocate for reform within the mainstream Tanaka/Takeshita faction. In 1993, Ozawa chose to split from the party and form the Japan Renewal Party, rather than continue within the LDP. This was seen as a serious betrayal by many, including Kato. When Kato was in a similar position in 2000, he chose party loyalty, despite his chances of considerable influence in the opposition had he crossed over. When the LDP was considering a merger with Ozawa's Liberal Party in the late 90s, Kato was strongly opposed to bringing Ozawa back to the LDP fold. Kato and Ozawa are often portrayed as archenemies, despite their very similar views on economic and political reform (in foreign policy Kato is somewhat less hawkish than Ozawa, advocating a more cautious international role for Japan). Scandals Kato was involved in several scandals in Japanese politics during his political career. He was implicated in the Recruit scandal in the late 1980s, tarnishing his reputation for several years. In 2002, he was the centre of a major scandal involving tax evasion, bribery and misuse of political funds. His secretary Saburo Sato had been charging a "Kato Consumption Tax" to companies wanting access to Kato while seeking public contracts. Sato had also failed to declare ￥100 million in taxes. While Kato denied any knowledge of the affair, few believed that such widespread corruption could have occurred in his office without his approval. It was later revealed that he had been using funds earmarked for political use to pay the rent on his Tokyo apartment. Faced with this evidence, he soon acquiesced to demands for his resignation. In November 2003, Kato made his return to the Diet as an independent, having retreated from politics long enough for the scandal to die down, and rejoined the LDP as a high-ranking member. House fire On 15 August 2006, Kato's adjoining house and office in Tsuruoka burned to the ground on the 61st anniversary of the surrender of Japan in World War II. The attack was confirmed as arson and the lead