Rosa Elena Bonilla was detained at her residence on the outskirts of the capital Tegucigalpa. As part of the operation, police also arrested her brother-in-law and seized documents pertaining to graft accusations.
Local media in Honduras extensively covered the arrest.
Bonilla stands accused of illegally obtaining some 12.2 million lempiras ($522,000) in the waning days of her husband’s administration, according to the national anti-corruption council, CNA.
Late last year, Bonilla denied the corruption allegations.
Corruption scandals have led to a string of arrests in Central America in recent years, thanks to growing pressure from activists and backing from foreign powers.
Bonilla’s detention took place a day after U.S. Ambassador to the United Nations Nikki Haley visited Honduras to talk about drug trafficking and corruption.
Earlier this month, the head of an anti-corruption commission backed by the Organisation of American States resigned citing a lack of support from authorities.
Lobo was elected in late 2009 after a military coup ousted then-President Manuel Zelaya, and he served until 2014.
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