Lawyer thought he was working with feds when he lost retirement savings to scammers
A 76-year-old retired lawyer in Arlington, Virginia, lost about $740,000 in retirement savings to sophisticated scammers who led him to think that he was helping the federal government catch thieves trying to gain access to his retirement and bank accounts. (Image from Shutterstock)
A 76-year-old retired lawyer in Arlington, Virginia, lost about $740,000 in retirement savings to sophisticated scammers who led him to think that he was helping the federal government catch thieves trying to gain access to his retirement and bank accounts.
Lawyer Barry Heitin “was one of many people interviewed by the New York Times who were ensnared in scams that could be so elaborate it’s as if they were created in a writer’s room testing different plot devices,” the newspaper reported.
People older than age 60 are often targeted because they are thought to have more savings to steal. That age group lost more than $3.4 billion in 2023—the highest losses among all age groups, the article reports.
The article described how Heitin was misled.
His ordeal began in September, when he tried to log in to his 401(k) and a screen popped up telling him to call the fraud department. The screen had the institution’s logo and a number to call.
Heitin called and reached the purported fraud investigator, who said someone was trying to gain access to his retirement account, as well as to his bank accounts. The man knew Heiten’s bank and gave him a supposed contact there to call.
The purported bank contact said there had been two $10,000 transactions to buy child abuse imagery from a Chinese website. Heitin agreed to work with the federal government to catch the fraudsters. Another man came on the line and said Heitin could safeguard his money by transferring it to a federal locker.
Heitin agreed to help and gave the scammers access to his computer. He was told that one of the thieves was arrested by Interpol, and another had been tracked to China.
Heitin followed instructions. When his bank adviser questioned his attempt to transfer his individual retirement account and brokerage money, Heitin agreed to an in-person meeting. The scammers, however, knew the name of the adviser and told Heitin before the meeting that the adviser was on a watch list, and the bank had leaked Heitin’s personal information.
Heitin was unable to withdraw his money. But the scammers told him to roll over his IRA to another financial institution. Heitin did so and then moved the money to bank accounts. He made some withdrawals and bought gold that he turned over to the scammers.
Heitin later learned that he was one of at least seven people who were duped in the same scheme.
Robert Rabinowitz, Heitin’s lawyer, is trying to help Heitin recover some of the money, the New York Times reports. Rabinowitz also plans to contest a $285,000 tax bill owed for the IRA withdrawals.
The article points out that when accounts are opened, investment companies are required to make reasonable efforts to obtain a trusted contact to call when there is a possibility that a customer is being exploited. Heitin’s financial institution didn’t have such a contact on file.
