OBION COUNTY, Tenn. —  It was 8:30 on Tuesday morning and surveillance cameras were rolling at the detention center.

The grainy video records a man in a wheelchair being wheeled in the front door and talking with federal authorities.  Next, he is handcuffed, led away and it is all over.

"There were no problems," Sheriff Jerry Vastbinder said of August Kreis III.

Vastbinder said there could have been.

"This had potential.  It could have been a bad situation."

Just last week, Kreis, 56, used a blog to make it clear he had no plans to cooperate.  Later, he told federal agents if they came to his home, then he would shoot.

Kreis is a white supremacist leader with ties to the KKK and the neo-Nazi Aryan Nations. The longtime racist was so controversial, even talk show host Jerry Springer had kicked him off his show.

But it is not his beliefs that have him in hot water. It is fraud.

He escaped charges by leaving South Carolina and starting over in South Fulton, Tennessee.  Authorities said he is facing felony charges for filing fraudulent statements in an effort to obtain veterans benefits.

No bond is set for Kreis.  He is being held in a federal detention center.  Kreis is due back in court next Tuesday in Jackson, Tennessee.  Prosecutors said it is likely he will return to South Carolina to be tried.