Chance of money back for cheated investors

New Zealand investors who put their faith in an internet investment scam have a slim chance of getting their money back .

American officials have arrested the alleged ringleader at the Mexican border with a bag full of cheques.

The US Securities and Exchange Commission has laid fraud charges against the Tri-West Investment Club, which it alleges offered phoney bank investments to online investors.

It is believed to have taken more than $US30 million ($70 million) from investors in the US and overseas.

The scheme was promoted in Palmerston North, Tauranga and Whakatane in July. The New Zealand Securities Commission and police warned against investing.

The American commission said it had laid charges against Alyn Waage, a Canadian living in Mexico, over the alleged fraud.

It is seeking a return of all investors funds.

It said Tri-West's website claimed its bank debenture trading programme was managed by Haarlem Universal Corporation, which it said was one of the world's largest and most prestigious trading companies.

It offered "prime bank securities" to investors, promising a 120 per cent return on investment, and played on the belief there was big money to be made investing in overseas funds. The NZ commission has said there was no such thing as a prime bank security.

Waage was arrested trying to enter Mexico with a suitcase holding $US4.5 million in undeclared cashier's cheques, made payable to Haarlem.

- NZPA