A judge issued an arrest warrant for John Bobbitt after he was a no-show at a required court appearance Tuesday in Burlington County, New Jersey.
The military veteran was previously charged for the charity scam.
Philadelphia police say he was taken into custody around 10:45 a.m. Wednesday. The Burlington County prosecutor's office said it will begin extradition proceedings.
His story went viral when, he and his alleged co-conspirators said, he gave his final dollars to a woman who ran out of gas.
The story turned out to be a scheme to raise cash on the crowdfunding website GoFundMe, officials say.
Under conditions of his release in December, he was required to inform the court of his new address and efforts to gain employment.
That had not happened which was why a court hearing had been scheduled.