A lot of North Americans, mostly retired, who had been drawn to Costa Rica not only by the climate, beaches, mountains and laid-back lifestyle, but by investment opportunities that don't appear to be available back home, have recently seen their illusions shattered about them. Two businesses that served thousands of American and Canadian investors have gone belly-up, and Costa Rican law enforcement authorities are taking an interest in the cases.

"The Brothers," a high-profile investment firm run by brothers Oswaldo and Enrique Villalobos, on paper had assets larger than Costa Rica's national bank. It had attracted investors by promising and delivering a return of three percent per month over several years. The Villalobos brothers also played their ties with the Nicaraguan Contras of the 1980s and right wing circles in the US to add a tinge of patriotism to their appeal to a lot of American invetorss, who included some US Embassy personnel and a lot of former CIA and other secret operations veterans. Some of these people believed they were providing money for extra-official use by Uncle Sam in order to do certain covert activities that congressional oversight committees might find inappropriate.

Now Osvaldo Villalobos is in custody, Enrique Villalobos has fled Costa Rica, the government has shut the financial operation down, it's not at all clear where all the money has gone and a lot of people appear to have lost a lot of money.

From an undisclosed point in cyberspace, Enrique Villalobos has sent out emailed promises to make the investors whole and bitterly denouncing the San Jose government for moving against The Brothers. Authorities moved in to close the operation after Canadian authorities asked for their help in a money laundering investigation, and the Villalobos brothers and their advocates protest that this was an unwarranted reaction.

Meanwhile Savings Unlimited, another Costa Rican offshore investment firm that offered three to four percent monthly returns and found a lot of American and Canadian takers, has collapsed and some 2,600 investors appear to have lost at least $160 million. The firm's apparent owner, one Louis Milanes, has disappeared along with the money.

So where would a fugitive Costa Rican scamster run? In these cases those who know aren't talking. Panama has been mentioned as a possibilty, but to Costa Rican observers Nicaragua seems to be a more likely destination.