Fugative businessman Mr. David Carter.
PHOTO: SPP
After leading authorities on a five-month international manhunt, American venture capitalist David Carter was arrested in Cyprus and released on bond.
However, authorities said it could be weeks before the fugitive is sent back to the United States.
Carter, who was well-known in the St Petersburg business community, was wanted by the US government on a 42-count indictment for bank fraud. He was declared fugitive in 1992.
A security division officer at the American Embassy in Cyprus confirmed that Carter was arrested by Cyprian police.
Bill Dempsey of the US Marshal's office said Carter was arrested on a "provisional arrest warrant."
Mr Dempsey, from the office's international department, said that a provisional warrant gives local authorities the power to arrest an individual on a foreign country's charge.
John Malcom, the assistant US attorney who drafted the original indictment in Atlanta, said he had "no idea" where Carter had been held in Cyprus and that it might be a long time before Carter is sent back to the United States.
"He [Carter] appeared before a judge in Cyprus and is now on bond," said Mr Malcom.
Details were sketchy as US officials said they did not know where Carter had been held, nor did they know the circumstances of his arrest.
One US government official said he was told of the arrest in late June, while US Marshals said Carter was arrested last week. No explanation was given for the discrepancy.
US officials agreed that it could take weeks to get Carter back to the United States.
"He has a right to an extradition hearing and a right to appeal any decision made in that hearing, or he can say he doesn't want to fight the extradition, in which case he could be back [in the United States] in a couple of weeks," said Mr Malcom.
"From what I know about him, though, I think he's going to make us jump through hoops to get him back. But I am doing everything I can to get him extradited," he said.
According to the indictment, Carter and his now-estranged wife Beverly Dwight fraudulently obtained more than $1 million from seven financial institutions in three states during the 1980s.
Dwight was named in 40 counts of the original indictment. In May, she pleaded guilty in an Atlanta court to two counts of bank fraud unrelated to the case.
Dwight's sentencing is scheduled for this week. She faces a possible two-year jail term and a fine of up to $200,000.
Dwight had set up a successful psychology business in Moscow and worked there until she was arrested in April.
She was held in a Moscow prison for several days before being extradited to the US.
Carter lived in St Petersburg for five years after arriving in December 1989.
He entered the business arena and soon became a controversial figure.
"He [Carter] gave Americans in the community a bad name," said Michael Mondini, a prominent local businessman. "I hope that David has his day in court and that justice is served."
In 1993, the GAI (traffic police) shot at Carter's car 18 times during a high-speed chase through the city.
Carter and GAI officials provided conflicting accounts of the incident.
Carter's assistant, Yana Gavrilovets, was wounded in the back of her hip the shooting.
Cyprus is an island nation located in the Mediterranean Sea, south of Turkey. Half of the island is governed by Turkey and the other half by Greece.