'Collar Bomb': Extradition Hearing Date Set

A man accused of chaining a "collar bomb" to the neck of a teenage girl in Australia earlier this month has been detained in the US pending an extradition hearing.

Paul "Doug" Peters, 51, was arrested near Louisville, Kentucky, on Monday afternoon in an operation involving an FBI Swat team.

An extradition hearing will take place in Louisville on October 14.

Peters had been staying at the home of his former wife and was arrested without incident, the FBI said.

Appearing in court shackled at the ankles and wrists, Peters made a brief appearance with his lawyer Scott Cox.

His ex-wife, Debra Peters, sat alone in the front row.

Police say that on August 3, Peters, wearing a balaclava, broke into the Sydney home of wealthy businessman Bill Pulver.

The only person home was Mr Pulver's 18-year-old daughter, Madeleine .

In an 11-page arrest complaint, police alleged Peters entered the home armed with baseball bat and carrying a backpack.

Police say he then produced a small black box and attached it around Miss Pulver's neck.

Mr Peters then allegedly said: "Count to 200 ... I'll be back ... if you move I can see you. I'll be right here."

It was revealed in court that Peters once worked for a company with ties to the victim's family.

The court heard he claimed that he could detonate the bomb by remote control, and left behind a ransom note for the family.

He also allegedly told Miss Pulver that the device had a microphone that allowed him to monitor her conversations.

She summoned help anyway and after a 10-hour ordeal officers were able to remove the device, which turned out to be harmless.

Mr Peters is an Australian citizen but has lived previously in the US, including Kentucky.

He reportedly became the key suspect after leaving Australia for the US on August 8.

State police from New South Wales flew to the US to help with inquiries on Sunday.

Assistant Commissioner David Hudson said the defendant was "surprised'' when he was arrested.

According to his lawyer, Peters earns his living through investment banking and has three school-aged children.

Sources indicated that financial demands had been made against Mr Pulver during the incident on August 3.

"There are some links between the suspect and the family but no direct links and that is still a matter of investigation,'' Mr Hudson said.