[Updated at 7:48 p.m. ET] A representative for Natalee Holloway's mother who paid $25,000 for information on the whereabouts of her remains last month was an undercover FBI agent, a federal law enforcement official told CNN.
However, the FBI and the U.S. attorney's office in Birmingham, Alabama, said Wednesday that the FBI did not supply the money.
"Some news accounts have suggested that the FBI provided $25,000 in funds that were transmitted to van der Sloot. This is incorrect. The funds involved were private funds," the FBI and U.S. attorney's office said in a statement.
An Interpol document says van der Sloot faces criminal charges in Alabama because he allegedly tried to extort money from Holloway's mother. U.S. authorities filed extortion and wire fraud charges against van der Sloot this week.
The FBI and U.S. attorney's office in Birmingham arranged for a meeting where van der Sloot was paid $10,000 in cash and another $15,000 in a wire transfer for information van der Sloot allegedly promised would lead to Holloway's body in Aruba, a source familiar with the case said. The meeting took place in May, according to the U.S. attorney's office in Birmingham.
[Posted at 1:44 p.m. ET] The FBI paid Joran van der Sloot $25,000 in an undercover investigation of a plot to extort money from Natalee Holloway's mother, a federal law enforcement official told CNN Wednesday.
The FBI and U.S. Attorneys Office in Alabama arranged for a meeting where an undercover agent paid van der Sloot $10,000 in cash and another $15,000 in a wire transfer for information van der Sloot allegedly promised would lead to Holloway's body in Aruba, a source familiar with the case said.
It's unclear if that money funded van der Sloot's trip to Colombia and into Peru where authorities said he confessed this week to killing 21-year-old Stephany Flores.
Van der Sloot, a Dutch citizen, was twice arrested in connection with the 2005 disappearance of Holloway but was released for lack of evidence.
The information van der Sloot provided to the FBI was not true, according to an Interpol document obtained by CNN Wednesday.
This week Alabama authorities filed extortion and wire fraud charges against van der Sloot.
On or about March 29, van der Sloot contacted a representative of Holloway's mother, Beth Holloway, the Intepol document states.
That came as a shock to Natalee Holloway's father Dave Holloway.
CNN spoke with his attorney Vinda de Sousa in Aruba Wednesday.
"Shocked, saddened," the attorney said when asked if he knew about the deal.
Van der Sloot and Beth Holloway's representative met in Aruba, where a payment of $10,000 was made to him, followed by a transfer of $15,000 to a personal bank account in the Netherlands, the Interpol document states.
In exchange, van der Sloot showed the representative a house where supposedly Holloway's remains were, according to the document. When records showed that the house wasn't even built at the time of her disappearance, van der Sloot admitted that he lied, Interpol said.
- CNN's Terry Frieden contributed to this report.