Federal fugitive and prominent tax dodger Winston Shrout, who failed to surrender to start serving his prison sentence in March, is back in custody in Arizona.

Shrout, 71, was scheduled to appear Tuesday afternoon in federal court in Phoenix for a detention hearing.

U.S. marshals arrested him on a warrant on Friday in Arizona, according to deputy U.S. Marshal Amelia Swenhaugen. Swenhaugen declined to say what city Shrout was arrested in or describe the circumstances.

The warrant was issued March 5 by U.S. District Judge Robert E. Jones.

Shrout was sentenced Oct. 22, 2018, after a federal jury in Oregon convicted him of six misdemeanor counts of willful failure to file tax returns and 13 felony counts of producing, presenting and shipping fictitious financial instruments.

Shrout, a sovereign citizen, made and issued more than 300 fake "International Bills of Exchange'' on his own behalf and for credit to third parties. The government said Shrout falsely claimed the bills had value and purported that they were worth more than $100 trillion. Shrout also testified at trial that he stopped paying income tax or filing income tax returns “well over 20 years ago.’’

He was scheduled to start serving his 10-year sentence March 4, the first Monday after the 9th U.S. Circuit Court of Appeals denied his request to remain out of custody pending his appeal of his conviction and prison term. The appeals court upheld Jones’ ruling that Shrout would pose a danger if he were to remain in the community.

But after Shrout failed to surrender to the federal Bureau of Prisons, the appeals court dismissed Shrout’s entire appeal in June.

-- Maxine Bernstein

Email at mbernstein@oregonian.com

Follow on Twitter @maxoregonian

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