Authorities in Marbella have taken Julian Tzolov, 36, into custody following an international manhunt after he disappeared in New York in May.
Mr Tzolov, along with ex-colleague, Eric Butler, pleaded not guilty last year to orchestrating a securities fraud in which they convinced foreign investors that securities being purchased in their accounts were backed by student loans guaranteed by the Federal Reserve.
Authorities said that the securities were in fact backed by high-risk investment such as subprime mortgages and investors lost millions when the values of their securities collapsed.
It is not yet clear what impact the arrest will have on a trial in the case, which had been due to start next week despite the absence of Mr Tzolov.
In related news, a New Zealand man suspected of running an investment scam is has evaded authorities by fleeing to Dubai, according to the New Zealand Herald.