Gunnar Stefan Moller, also known as Wathe Stefan, carries a “red corner notice” issued by US investigative agencies for evading arrest and escaping the country. The IGIA police arrested him on Friday.

Police sources said a US district court in North Carolina had issued a warrant against Moller in September 15, 2005.

Sources said charges against Moller date back to April 1, 2003, when a US court in Kansas convicted one William Pikard for manufacturing banned LSD drug (Lysergic Acid Diethylamide). According to US authorities, Moller helped Pikard launder his ill-gotten money by investing it in Russia. US authorities estimate Moller had laundered as much as US$ 3 million for Pikard in Russia.

Newsline has learnt the method in which Moller repaid part of that money: Pikard first took up a research position at the University of California in Los Angeles; next, he got his research funded through a Russian associate in the university, one Viatchelav Kolesnikov. But the ‘donated fund’ actually came through Moller — from Pikard’s own money the Icelander had earlier laundered to Russia.

Newsline has learnt that Kolesnikov received money from entities controlled by Wathne in Estonia and other places between 1998 and 2005; he thereafter made ‘donations’ to fund Pikard’s research.

Money laundering is considered a serious offence in the US; if charges against Moller are proved he could get be sentenced up to 20 years in jail, police officials said. At the time of his arrest at IGI, Moller, born in Iceland’s capital Reykjavik, was carrying a handbag, a cellphone, credit cards, a Rolex watch, two driving licences, and two student’s identity cards.

Moller has applied for bail in a Patiala House court. His plea will be heard on Friday.