FBI agents served legal papers on Allen Stanford alleging a multi-billion dollar fraud after the billionaire was found driving in Virginia.
The Texan cricket entrepreneur had not been seen since being charged with frauds totalling $9.2bn (€7.3bn) on Tuesday by regulators in the US.
But last night authorities located a 'very co-operative' Mr Stanford in a car in Fredericksburg, Virginia.
'He wasn't hard to find,' a spokesman for the FBI said, adding: 'We said, 'Are you this guy?', he said, 'Yes', and we served the papers on him.'
It ends two days of speculation over the whereabouts of the accused fraudster.
Reports had earlier suggested that he had tried to leave the US in a private jet.
However, authorities have been keen to stress that Mr Stanford was not being seen as a fugitive on the run.
The papers eventually served on him last night relate to civil court proceedings and as such he has not been placed under arrest or taken into custody.
But the tycoon has had his assets frozen and been placed under a temporary restraining order as part of the US Securities and Exchange Commission complaint. It is also understood that he has agreed to hand in his passport.
According to the regulator, Mr Stanford is guilty of fraud 'of a shocking magnitude' relating to an $8bn ($6.34bn) certificate of deposit (CD) scheme and a separate $1.2bn (€950m) investment vehicle.
It follows a probe into Stanford and his firms, Stanford International Bank (SIB), Stanford Group Company and Stanford Capitol Management.
