WEARING an open-necked shirt of lavender hue, the investment banker turned alleged extortionist Paul Peters looked the most unlikely of ''perps'' in the mugshot snapped at Oldham County Jail in Kentucky. Back home, his older brother Brent, who has his own mugshot courtesy of a stint in jail for drug dealing, was far from convinced that police had caught the right man. ''He wouldn't have the balls to do it,'' said Mr Peters, 52, referring to his brother's arrest in the US over the collar-bomb extortion attempt on 18-year-old Madeleine Pulver. Speaking from his flat in Katoomba, Mr Peters said his brother was not capable of constructing such a device: ''He's a lawyer not an engineer''. He also dismissed the idea that Paul might have had financial troubles. ''All I knew was that he was a highly paid executive in America, living in a bourgeois house, driving around in a Porsche and a BMW.'' Brent Peters, a former Kings Cross bouncer, said it was possible that his brother was being framed. ''I am just thinking that in my case where they fabricated all this evidence, he might have been set up.'' Mr Peters said his arrest for attempting to murder two police officers at Vaucluse by trying to run them down was self-defence as the police had sprayed his cars with bullets. And his 1987 arrest for supplying $5 million worth of heroin, was based on fabricated evidence, he said. He was acquitted of both charges. Brent Peters said his 82-year-old father was ''absolutely shattered'' over Paul's arrest. ''He just doesn't need this. I put him through enough myself.'' Paul Peters's former American wife, Debra Peters, also appeared stunned by his arrest. ''She is handling this very poorly. She is in shock,'' said Scott Cox, Paul Peters's American lawyer. When later asked how her former husband was faring, Mrs Peters told the Herald to "get off my property or I will have you arrested". NSW police allege that the first step in this most unusual crime took place at Chicago airport on May 30. While at the airport Mr Peters is alleged to have set up the email account later used in the August 3 ransom demand when the simulated explosive device was chained to the neck of Ms Pulver, who was alone at her Mosman home studying for her trial HSC exams. The email address - email@example.com - is understood to be a reference to the fictional character Dirk Struan, from James Clavell's 1966 novel Tai-Pan, set in Hong Kong. The loose translation of tai-pan is ''supreme leader''. Much of Mr Peters's formative years were spent in Hong Kong where his father was a pilot for Cathay Pacific. He and his older brother Wayne later worked for several years in Hong Kong as investment bankers. According to Sharon Aldrick, his landlord at the Copacabana house on the central coast where Paul Peters has stayed for three months each year for the past three years, Mr Peters was busy writing a book, reportedly called Silent Emperor, based on his time in Hong Kong. She said that he had recently emailed her the first few chapters before heading back to the United States. ''[He was a] polo playing, Ralph Lauren suit-wearing gentleman,'' Ms Aldrick told Channel Seven last night. US court documents list the Copacabana house as Mr Peters's recorded address in Australia but Ms Aldrick said he was renting a nearby house in the six weeks before the August 3 extortion attempt. Much of the police case against Mr Peters is based around the central coast. Within hours of allegedly fastening the collar bomb to Maddie Pulver, police claim Mr Peters accessed the email account he had set up two months earlier. Police allege that just after 4pm Mr Peters used a computer at Kincumber Library. Within the next few hours the email account was accessed twice from the Avoca video shop. Mr Peters is also alleged to have used his credit card to buy a baseball bat at Erina Fair shopping centre, similar to the one police allege Mr Peters carried with him when he broke into the Pulvers' home. Yesterday Maddie Pulver said she was ''very relieved'' and ''glad it is all over''. She summed up the feelings of many who have been following the bizarre case when she said: ''It's all very surreal, very surreal.''