Collar bomb hoaxer expected in Sydney

Paul 'Doug' Peters was arrested by the FBI after tying a fake bomb around a Sydney schoolgirl's neck. Photo / AP

Accused Sydney neck bomb hoaxer Paul Peters has been moved out of his Kentucky jail cell and is flying to Los Angeles under US Marshals guard.

The silver-haired 50-year-old investment banker, accused of terrorising 18-year-old Madeleine Pulver at her family's north shore Sydney home on August 3, is expected to board a Los Angeles to Sydney flight on Thursday night (Friday afternoon AEST).

He will be escorted by two NSW police officers on the 15-hour flight, scheduled to touch down in Sydney on Saturday morning (AEST).

"He is no longer at the facility," a spokesperson at the Oldham County Jail, in Louisville, Kentucky, told AAP.

Peters spent five weeks locked up in the jail, but became "anxious" with the prospect of remaining in custody in Kentucky while enduring a long extradition court battle that would likely prove unsuccessful, his Louisville lawyer Thomas E Clay said.

Peters has assembled a legal team to represent him in Sydney.

Police allege Peters bought a one-way ticket from Sydney to Louisville on August 8. His ex-wife lives a short drive outside of Louisville.

On August 3 Peters allegedly broke in to the home of Sydney's wealthy Pulver family and found 18-year-old Madeleine in her bedroom studying for a trial HSC exam. Peters was carrying a black aluminum baseball bat, wore a balaclava and attached a "black box" around Madeleine's neck, according to authorities.

A note left at the scene warned the device contained "plastic explosives", but after a terrifying 10 hours, bomb squad officers confirmed it was not a bomb.

Peters was arrested at his ex-wife's Kentucky home on August 15.

Peters faces charges of: kidnapping; aggravated break and enter with intent to commit a serious indictable offence; and demand property with intent to steal.

-AAP