Orillia couple scammed out of $1.3M in elaborate cyber crime

‘I don’t want other people to fall into this trap. All I want is for people to be very, very careful, because it’s put us into a financial nightmare,’ says Orillia senior

It all started with a phone call from a person alerting Orillia senior Harry Little that his computer had been compromised.

Months later the 85-year-old ended up losing his life savings of $1.3 million in a crypto currency cyber scam that happened without his family’s knowledge.

Retired and spending much of his days on the computer in his Orillia condo, Harry began a relationship with the caller. The topic quickly progressed from his computer issues to the merits of investing in crypto currency, which Harry knows little about.

When his wife was off swimming and taking yoga classes at the Orillia Recreation Centre, Harry regularly spoke to “Rick Jamieson” who convinced him to invest his money in Newton Crypto Currency of Toronto.

“The objective was to have my computer not explode and it kept growing and growing and growing,” recalled Harry of the origins of the scam. “Then the objective was to get my money back.”

The scammer sent them a screen shot, saying their investment had grown to $1.9 million.

It all began last July, when Harry began taking $50,000 at a time out of his CIBC Wood Gundy investment and sent them through the downtown Orillia CIBC branch to Newton Crypto Currency. Between July 16 to Dec. 23, he made 24 transfers of approximately $50,000 each.

Harry went against the advice of his financial planner and didn’t notify his wife, Peggy, who had worked as bank secretary for many years.

“I personally had to go to the bank and arrange for the transfers,” he said.

The CIBC branch didn’t question the transfers, nor did they contact his wife or either of their two grown children.

Asked if anyone at the bank asked to speak to his wife Peggy, he said, “Not that I can recall.” Peggy added she didn’t receive any phone calls from the bank.

Further, the couple had to pay thousands of dollars in federal taxes by liquidating their RRSPs.

Now the couple is left with no savings at all. While they own a condo, they must live off their basic government pensions and a small WSIB pension.

Peggy, 86, approached OrilliaMatters wanting their story told.

“I don’t want other people to fall into this trap. All I want is for people to be very, very careful, because it’s put us into a financial nightmare. I want people to be well aware of the scoundrels and thieves that are out there.”

OrilliaMatters sent CIBC in Orillia several questions about this incident late last week. They have yet to provide answers.

Meanwhile, it turns out Newton Crypto Currency has no office in Toronto, only a post office box. The Littles discovered this after driving to the 180 John St. address in Toronto. There was no one to talk to.

In viewing the Newton Crypto Currency website, there is no email address listed. The phone number, 1-855-639-8662, gives you an automated response. When called it says “We are not accepting inbound calls,” and refers the caller to a support bot.

The “talk to a human” icon brings up an AI “Isaac.” What is offered are choices of investments. A reporter followed the trail and eventually could type in a real question. The bot replied asking for an email address. A reply came that they would be looking into the request.

Peggy reported the crime to the Orillia OPP and had been working with a local officer. She said the police checked Newton and found out the couple has no funds invested there or in any other crypto currency companies.

“The last report I got was that the money was sent to the U.S. and is now offshore. As far as I know they can’t get any of it back,” she said.

Orillia OPP Acting Sgt. Gilles Doiron said he couldn’t elaborate on that.

“At this time we are unable to provide comments regarding cross-border collaboration or partnerships with agencies outside of Canada,” he said.

“For victims of cybercrime, such as the Littles, their case will continue to be managed through the local detachments where the report was filed. If specialized support is required, the detachment will liaise with appropriate OPP resources, including units with expertise in cybercrime,” said Doiron.

When a cybercrime is reported, OPP officers conduct a “thorough investigation in collaboration with our detachment crime units. These investigations include gathering evidence, interviewing involved parties and pursuing all available leads,” said Doiron.

Additionally, the OPP regularly issues press releases to educate the public on cybercrime including cryptocurrency-related scams, he noted.

Harry said he made made efforts to withdraw funds from the crypto currency. Peggy said at one time, whomever they spoke to asked for $150,000 to get their money out. Other efforts involved so many steps, the couple couldn’t figure it out, if indeed there was a way.

The OPP strongly advise:

Never share personal or financial information with unsolicited contacts;
Verify investment opportunities through trusted financial institutions;
Be cautious of high-pressure tactics or promises of guaranteed returns; and
Report suspicious activity immediately to police and the Canadian Anti-Fraud Centre (www.antifraudcentre-centreantifraude.ca.