AN AMERICAN student suspected of swindling a North-East couple out of their life savings in an Internet fraud has committed suicide.

Former miner Tom Shead, of Eastdene Way, Peterlee, County Durham, spent almost £5,000 on a gold Rolex watch in an Internet auction.

The watch was bought as a gift for his wife Carol's 54th birthday but when the package arrived it contained only a photograph of the watch.

The couple later received an e-mail from the seller telling them they had only bid for the photograph, but the money had already left their bank account.

They contacted County Durham police who then worked with the FBI to track down the swindler, whom they believed to be 21-year-old Jeffrey Chastain.

When officers went to arrest the Seattle University student they found he had committed suicide by jumping off a bridge.

Detective Constable Brian Roberts, of Peterlee police, said he did not think Chastain's death was connected with the Internet fraud because he was known to have a lot of personal problems.

The Sheads have been told by the FBI that Chastain's family plans to re-pay the £4,717, but the couple have written off the money, which they planned to spend on a holiday.

Mr and Mrs Shead believed they were buying an 18-carat gold watch with a diamond bracelet, which costs about £25,000 new.

Police say Internet fraud is rife in America and have warned shoppers to take care when buying on-line.