Santo Domingo.- Multimillionaire British fraudster Michael Brown has been arrested in the Dominican Republic resort of Punta Cana after going on the run, say unnamed local police officials quoted by UK news sources.

DT learned of the mysterious case when contacted by a British newspaper which sent reporters to the country, and were surprised that the local authorities weren’t aware that Brown had been living in the country for several years, even going into various types of businesses.

They were also surprised that the UK authorities had yet to make a formal request for the fugitive’s apprehension.

Brown was sentenced in his absence to seven years in jail after being convicted of fraud at Southwark Crown Court in 2008.

He donated about Stg2.4 million ($A3.65 million) to the Liberal Democrats ahead of the 2005 general election - its largest donation to date.

British news source telegraph.co.uk reports that Police in the Dominican Republic are now searching for the British fugitive, backed by a threat to deport him because he is in the country on false documents.

But they expressed dismay that British police never told them that Brown was on the Caribbean island.

The con man was in custody on unrelated charges for three months this year, but freed because they had no idea he was a wanted man.

"We cannot deal with what we do not know," said the judge who jailed him.