David Kaup, 30, was arrested by federal agents Tuesday morning at a Las Vegas home where had been living. Authorities received a tip on Kaup's whereabouts after news organizations reported about his case, the FBI said.
Kaup pleaded guilty to defrauding more than 50 families in three separate fraud schemes. He was supposed to be sentenced in December after pleading guilty to two counts of wire fraud but failed to appear in U.S. District Court in Los Angeles, according to the FBI.
In one scheme, Kaup set up a mortgage firm and told homeowners that he could refinance their properties at below-market rates if they provided money up-front to prove they were financially qualified for the special loans, authorities said.
But Kaup admitted using the money to buy luxury items for himself and to trade on the Foreign Currency Exchange Market.