The 58-year-old was a close friend of Epstein, who died in jail last August while awaiting trial for a string of charges relating to the sex trafficking of women, some of whom were alleged to be under the age of 16.
The whereabouts of Maxwell became a national talking point last year following Prince Andrew's car crash interview with Newsnight in which he was quizzed about his friendships with both Maxwell and Epstein.
According to The New York Times, Maxwell was arrested by the FBI in New Hampshire and will appear in federal court later today on charges concerning Epstein.
The daughter of the late media mogul Robert Maxwell is accused of helping procure and groom girls for Epstein, and is also alleged to have advised some of the girls on how to sexually satisfy him.
Maxwell has consistently denied having any knowledge of Epstein's activities and has kept a low profile since his arrest last summer.
Epstein is said to have taken his own life by hanging, although conspiracy theories persist over whether he committed suicide or was murdered.