Darren Albert Jolly (50) was remanded in custody by consent when he appeared in the Dunedin District Court yesterday on two counts of breaching an extended supervision order.
Jolly was arrested by police on Tuesday and appeared in court the same day, where he sought and was granted interim name suppression.
That suppression lapsed when he appeared in front of Judge Michael Crosbie yesterday and no further suppression was sought.
Jolly (50) is subject to strict supervision conditions under a 10-year extended supervision order (ESO).
It was revealed last week that Jolly, who has more than 110 convictions for sex with underage girls, indecent sex acts, fraud, theft, assault and dangerous driving, had been living in Dunedin since his release from prison on October 21.
Detective Sergeant Regan Boucher confirmed Jolly was arrested by police on Tuesday after a month-long investigation.
He was charged with twice being in possession of a smartphone with access to the internet.
Jolly's ESO contains 13 special release conditions including a ban on computers or devices with internet access or going near schools, parks and playgrounds, a strict overnight curfew and GPS monitoring.
Corrections Otago district manager Raymond Clark said Jolly's arrest demonstrated the strict monitoring he was subject to.
''The charges laid against Mr Jolly for breaching the conditions of his order demonstrates our commitment to his strict management by ensuring a strong and swift response to non-compliance,'' he said.
Jolly had previously breached his ESO 12 times and was last year jailed for breaching it by cutting off his GPS monitoring bracelet and leaving Dunedin without permission.
After Jolly's presence in Dunedin was revealed last week, a number of car dealers approached the Otago Daily Times with information about him.
Jolly had taken cars from dealers throughout the city for test-drives under various guises.
He took 18 cars from four dealerships during a five-week period, one dealer, who did not wish to be identified, said.
''We don't know what he's been using these cars for,'' Mr Clark said.
''He told us he had a wife ... and he told us he was in a band,'' one car dealer said.
Jolly kept some of the cars overnight before returning them the next morning.
''That's the frightening thing, none of us know what his activities were in our cars,'' he said.
He had driven ''between 90km and 100km'' in the vehicles he took off his yard, the dealer said.
Jolly had claimed to the car dealer he had needed to test-drive the vehicles overnight so his wife could see them, he said.
In fact, he had been living by himself in his Dunedin flat.
''When we were dealing with him, we didn't know we were dealing with a guy of that sort of calibre of personality,'' the car dealer said.
''He just needs to be locked up.''
The ODT understands Corrections and police were aware of Jolly test-driving cars, but there was no proof of criminal wrongdoing.
Jolly told the ODT, when approached last week, that his release to Dunedin marked a ''whole new start'' for him.
Jolly's flat was only 1km from a kindergarten and a short distance from ground heavily used by children's sports teams.
During his appearance in court yesterday, he was remanded without plea and would next appear in court by audio visual link next week.
Mr Clark called on anyone with information about Jolly or any alleged offending to come forward.
''We would like to encourage any person with information that suggests that Mr Jolly has committed criminal offending, or has breached the conditions of his extended supervision order, to report this to Community Corrections, the New Zealand police, or anonymous crime reporting line Crimestoppers on 0800-555-111.''
