LOS ANGELES — Eight people, including three Costa Rican residents, were arrested on suspicion of tax evasion and fraud after hundreds of people invested at least $80 million in a foreign-currency Ponzi scheme, authorities said.

The suspects were affiliated with the private and now defunct Genesis Fund, according to an 83-count indictment unsealed Friday. Police were searching for a ninth alleged co-conspirator.

All nine people were charged with conspiracy, obstruction, mail fraud, wire fraud, money laundering, tax evasion and failure to pay taxes.

The indictment states that the fund was set up in 1995, with backers promising money would be invested in foreign currency with a return of 3 to 4 percent a month.

In 1998, investors who had become frustrated over their inability to withdraw their money filed a lawsuit that led to a court order requiring Genesis to keep $5 million in reserve.

Fund managers then stopped investing in foreign currency and began using new money coming into the fund to benefit themselves and provide dividends to existing investors, according to the indictment.

Between May 1998 and June 2002, more than $80 million was deposited with the Genesis Fund, authorities said.

The defendants are also accused of telling investors Genesis did not have to report to the Internal Revenue Service and of creating offshore accounts to hide money and avoid paying U.S. taxes.

In April 2000, some of the defendants moved from Anaheim to Costa Rica, taking paper records with them and destroying electronic data, the indictment states.

The fund collapsed in June 2002, weeks after investors were allegedly told Genesis was worth $1.3 billion.

Fund managers John S. Lipton, 58, Richard Leonard, 71, and Victor Preston, 64, were arrested by Costa Rican and Interpol agents and were being held in San Jose, Costa Rica, according to the U.S. Attorney's Office in Los Angeles. The United States plans to seek their extradition.

Authorities were searching for Marlyn "Milt" Hinders, 65, an alleged manager for Genesis, who moved to Mexico from Colorado in 2004.

Others arrested and charged in the case were identified by authorities as:

• David L. Johnson, 66, of Walnut Grove.

• William H. Nurick, 69, of Camarillo.

• William Taylor-Fraser, 57, and wife Denise, 51, of Riverside.

• Teresa R. Vogt, 51, of Anaheim.

None of the suspects could be reached for comment.