A BUSINESSMAN arrested at an Oxford hotel over an alleged £1.3m fraud is expected to appear in court tomorrow facing extradition to the US.

Kevin Halligen, 48, who ran a firm that helped look for missing girl Madeleine McCann, was arrested at the Old Bank Hotel, in High Street, yesterday.

Police went to the hotel after a manager read a newspaper article about the US case and recognised a hotel guest as the wanted man.

The US Department of Justice issued an indictment against Irish national Halligen, from Surrey, earlier this month, alleging he tried to defraud a London law firm of £1.3m.

David Harris, finance director of the hotel, said: “On Tuesday, the manager of the Old Bank contacted police concerning this man called Kevin Halligen.

“He was known to us as Richard Hall. He had stayed at the hotel for several months.

“He had an outstanding bill of less than £5,000. To us, he was just an ordinary, well-behaved guest.”

Officers from Thames Valley Police handed Halligen over to Scotland Yard’s extradition unit this afternoon.

He is expected to appear at City of Westminster Magistrates’ Court some time tomorrow.

A spokesman for the McCann family said: “Our association with Halligen and Oakley International ended well over a year ago.

"Given that an arrest has been made, it would be inappropriate for us to comment.”