Federal agents arrested Robert Walker,the founder and former CEO of Bixby Energy Systems, Wednesday morning.
The Ramsey-based alternative energy company admitted earlier this month that it had engaged in a securities fraud costing investors as much as $7 million.
The company agreed to cooperate with prosecutors in exchange for a promise the government will defer or dismiss further prosecution of the company.
The U.S. Attorney's Office isn't saying what charges Walker will face. He will appear before a federal judge Wednesday afternoon in St. Paul. Walker left the company earlier this year. Walker founded Bixby Energy in 2001. Bixby says it is a "new energy" company committed to finding and developing technologies that provide clean, economical energy from coal and other fuel sources.