Welcome to the world of MLC. I can understand the humiliation, but this is typical behavior of someone in crisis. They are out there searching the world for their soul mates and what better way to do this but w/the electronic mediums. He's living out a fantasy and he's trying to find someone who doesn't know him and will stroke his ego and spark some interest in him. Whether it goes any further than email/text exchanges, time will tell.
Do you call and yell at him? No, you make copies of anything and everything that he spends money on. You may need to make copies of some of the exchanges if possible just in case you need the proof later on. You'll find out more if you sit quietly and observe. Keep in mind, the more you confront him, the more determined he's going to be to do what he needs to do to get through his crisis. Also, the more you point out what he's doing, the more determined he will be that he's making the right decision to do the things he's doing. Don't get him that justification.
Mlcers will do a lot of things that they normally would not have done pre-crisis and there's nothing you can do about it. You didn't break him, therefore you can't fix him. He's got to figure things out on his own and you do not want to act like his mother and point fingers at him when he does this stuff. You have to learn to bide your time and post here to vent. I know it's difficult, but sit quietly, more info will drop into your lap when you least expect it.