Police name man arrested in Pulver bomb hoax case

The father of fake bomb victim Madeleine Pulver says he's very relieved an arrest has been made over the attack on the Sydney schoolgirl almost two weeks ago.

"This has been a baffling and frightening experience," Bill Pulver, accompanied by his wife Belinda, told reporters in Sydney on Tuesday.

"It has tested us all."

"These past two weeks have been very difficult for us and we are hopeful that this development marks the beginning of the end of this traumatic ordeal for our family."

A heavily armed US FBI SWAT team picked up a 50-year-old Australian man at his ex-wife's Kentucky home at about 4.45pm local time.

"We saw FBI agents ringing the house with machine guns. They were kind of all the way around the house," John, a neighbour, told 7News.

FBI special agent Elizabeth Fries said Paul "Doug" Peters was arrested without incident at the home, near La Grange, Louisville.

Two NSW Police officers accompanied the armed US SWAT team when they raided the residence.

"He does have some family connections here and has lived in the United States for some time," NSW Police officer superintendent Luke Moore told reporters at a press conference in Louisville.

7News reports Doug Peters, a respected international businessman and lawyer, was surprised at the time of his arrest.

"We have what we believe, or we will allege, are some possible tenuous connections through business dealings but we haven't established a firm connection at this stage," Superintendent Moore said.

The similarities between the suspect and the victim's father, Bill Pulver, are striking. Both are men of finance with business interests in the United States and Australia, and have an 18-year-old daughter.

7News unveils Peters was a student at the exclusive Scots College in Bellevue Hill.

"He fitted in well with his peers, he had a happy disposition from what I remember...he seemed to get on well with most people," a former teacher told 7News.

He went on to graduate from Sydney University, with a law and economics degree.

After climbing high in the corporate world, he gained experience in Hong Kong, Tokyo and New York working for various finance companies. One of his companies, Allco, was behind the consortium that unsucessfully tried to take over Qantas in November 2007.

He is also a polo player and licensed pilot.

"We have what we believe, or we will allege, are some possible tenuous connections through business dealings but we haven't established a firm connection at this stage," Superintendent Moore said.

While in Australia he reportedly lived in Copacabana, just down the road from the Pulver's beach pad in Avoca.

It will be alleged after attaching the fake bomb to Madeleine, Peters fled to the US and made his way to Chicago via Louisville.

It's believed the man left the country on August 8, five days after a fake collar bomb was attached to the Maddie Pulver's neck with a bizarre extortion note.

Police reportedly followed an electronic trail in hunting down Peters, after the extortionist included a Google email address on the note, which was pinned to Madeleine.

7News reports detectives traced the email address to Kincumber Library on the Central Coast, where it had been recently used. It led them to the suspected extortionist.

Police have been searching for the person responsible since the early days of the case however Peters only became a suspect after leaving Australia.

"We will allege the suspect was responsible for entering the Pulver home and placing the device around Madeleine's neck," Mr Hudson told reporters in Sydney. The suspect can be held for 60 days pending a full extradition hearing.

The case is described as a 'very strong circumstantial' case, despite no motive being identified.

"It's a fairly detailed chain of circumstantial evidence that led to the arrest this morning," Assistant Commissioner Dave Hudson told reporters at a press conference with Police Commissioner Andrew Scipione on Tuesday.

The man is yet to be charged but the provisional warrants are for aggravated break and enter, committing a felony and kidnapping offences. He will appear in court Tuesday morning US time.

When asked if they believe the man acted alone, he said: "At this stage we are not seeking any other offenders in this matter."

Police were still investigating the possible motive for the crime, Mr Hudson said.

It's believed the suspect left the country on August 8, five days after a fake collar bomb was attached to the Maddie Pulver's neck.

Police have been searching for Peters since the early days of the case however he only became a suspect after leaving Australia.

"We will allege the suspect was responsible for entering the Pulver home and placing the device around Madeleine's neck," Mr Hudson told reporters in Sydney.

He praised Ms Pulver for her cooperation with police during the lead-up to the man's arrest.

"She, from the very start, despite reports that suggested otherwise, was totally believed by the police officers who took those statements, and we have looked at this as a true offence from the very beginning," he said.

"The statement from the victim has assisted us in the resolution we have come to this morning."

Ms Pulver had a fake bomb chained to her neck by a man who entered her family home in the northern Sydney suburb of Mosman on August 3 in an alleged extortion attempt.

Mr Pulver said the ordeal and intense media interest in the case had weighed heavily on the family.

"But we have been overwhelmed with the love and support we have received from family and friends, our neighbours, and the school and local community," he said.

"Obviously at times, we have found the intense media interest in this case to be difficult to handle.

"But I also have to say that the media have generally been professional and respectful of our situation while doing their job.

"From our perspective, media have only ever portrayed Maddie for exactly who she is: a bright, happy young woman, who for reasons we still don't understand has had her life turned upside down going through this dreadful experience," Mr Pulver said.

Mr Pulver thanked NSW Police and Strike Force Haddon, which was set up to investigate the incident.

"Their professionalism, support and dedication has been truly amazing and inspirational," he said.

He also again commended the Sydney emergency services who helped his daughter through her ordeal.

"We have been humbled by the selflessness and generosity of those wanting to help Maddie in any way they can," he said.

"From those we know well, to those we have never even met before, in Australia and overseas, we want to say a very heartfelt thank you."

Mr Pulver said the family's priority was to try and help his daughter "as best we can to get her life back to normal, to help her recover from this ordeal and to get her through her HSC trials."