A wealthy yachtswoman who disappeared for three days in Bermuda after winning a sailing race has been arrested on suspicion of embezzling millions of dollars from investors.

Commodities trader Elizabeth Baldwin went missing after the 65ft mahogany sloop she chartered for the 2006 centennial Newport to Bermuda race came first in its category.

It was reported at the time that she had been planning to buy the Van Ki Pass outright after winning the race but went into hiding at Grotto Bay Hotel when it all became "too much".

Rhode Island News reported on Friday that state police had arrested her five days earlier at her harbourside Newport apartment on charges of embezzling $7.3 million from 47 investors.

Officials allege that she duped them with an elaborate pyramid scheme and used their money to buy the Van Ki Pass, rent a house in St. Barts and travel through the Caribbean and Europe.

Rhode Island News said the state felony charges were the latest to beset Ms Baldwin; federal officials levelled civil complaints against her last autumn as part of the same investigation.

In a 16-page affidavit, State Police Detective Todd E. Catlow described how 11 of her investors in Virginia who had collectively invested $1.9 million suspected wrongdoing when she refused their requests to return money.

Ms Baldwin has been released by a judge on $100,000 surety bail and ordered to surrender her passport.

She is expected back in court later this month to enter a plea.