Costa Rica Arrests On Behalf of U.S. Persons Accused of Internet Securities Fraud

On September 7, 2001, U.S. law enforcement officials announced they had shut down an Internet “investment club” that has defrauded more than $50 million from investors around the world during the past two years, including nearly 100 people in the Sacramento, California area. The law enforcement operation was directed at the Ti-West Investment Club and include the arrests of a Canadian con artist and a California Web site architect in Costa Rica. Arrested and awaiting extradition to the U.S. were Alyn Richard Waage, 55, of Canada and James Michael Webb, 39, of California. Lynne Waage Johnston, Waage’s sister and the operation’s alleged bookkeeper, was sought on similar charges in connection with the alleged scam.