In a story that reads like a Hollywood thriller, Barry Heitin, a 76-year-old retired lawyer, found himself ensnared in a complex scam that siphoned off nearly all his retirement savings. For almost three months, Heitin believed he was aiding a government investigation, only to discover he was unwittingly assisting criminals in stealing $740,000 of his own money.
Caught in a Deceptive Web
It all began last fall when Heitin encountered issues logging into his 401(k) retirement account. After a few failed attempts, a screen prompted him to call the fraud department of his 401(k) provider. The number he dialed connected him to a man who introduced himself as Charles Hunt, a supposed fraud investigation officer. Hunt warned Heitin that someone was attempting to access his account and claimed that Heitin’s other financial accounts were also at risk.
In what seemed like a coordinated effort, Hunt connected Heitin with another man, Hayden Smith, who claimed to be from Heitin’s bank. Smith fabricated a story about two $10,000 transactions linked to child exploitation imagery from a site in China. He interrogated Heitin about his connections to China, further deepening the scam’s credibility.
The final piece of this malicious puzzle came when a third man, Finn Whitrock, claimed to be an IRS agent. He assured Heitin that the government could safeguard his money by transferring it to a federal locker. Enticed by the prospect of protecting his savings and assisting a federal investigation, Heitin agreed to cooperate.
The Costly Charade
Believing he was part of a major sting operation, Heitin began withdrawing his retirement funds and transferring them to what he thought were secure locations. Smith and Hunt maintained daily contact, building a rapport with Heitin to ensure his compliance. They instructed him to use bitcoin, ATMs, and wire transfers, effectively isolating him from any outside intervention.
Heitin’s ordeal highlights a growing threat to Americans’ retirement savings. Sophisticated scams, often orchestrated through dating sites, social media, and messaging apps, prey on individuals’ trust and naivety. These scams are difficult to trace and recover funds from, as stolen money is quickly moved to overseas accounts or laundered through cryptocurrencies.
In Heitin’s case, the scammers coached him on how to bypass fraud prevention measures, manipulating his trust and sense of urgency. They even planted seeds of doubt about his long-time financial adviser, further isolating him.
The Aftermath
Heitin’s nightmare began to unravel when a New Jersey detective contacted him, revealing that his name appeared on a receipt for gold found in a car. This revelation led to a meeting with FBI agents, where he learned he was one of several victims caught in a scam based in India.
The financial implications of the scam are devastating. Withdrawals from tax-advantaged retirement accounts like traditional IRAs are taxed as ordinary income, leaving Heitin with a $285,000 tax bill. The 2018 Republican-led tax overhaul eliminated deductions for victims of theft, compounding his financial woes.
Heitin’s daughter, Liana Loewus, expressed her frustration: “My dad was set up for a very comfortable retirement, and he is just not anymore. One of the most difficult parts of the aftermath of a scam like this is that it feels like no one cares.”
Moving Forward
Despite the financial and emotional toll, Heitin is determined to move past the ordeal. His tainted laptop now sits at the bottom of his pantry, a symbol of the painful episode. He acknowledges his missteps but focuses on the support of his family to avoid falling into a depressive loop.
The FBI’s Internet Crime Complaint Center reported that potential losses from cybercrime exceeded $12.5 billion in 2023, a 22% increase from 2022. People over 60, often seen as having significant savings, experienced the highest losses, totaling over $3.4 billion.
Heitin’s story serves as a stark reminder of the sophisticated tactics used by scammers and the importance of vigilance in safeguarding one’s savings. It underscores the need for enhanced protections and awareness to prevent such devastating losses in the future.
