Elderly Grandmother Loses $850,000 Retirement Fund in Elaborate 'Pump and Dump' Scam
An 81-year-old woman was lured into a sophisticated investment scheme by scammers impersonating a well-known economic analyst, leading to the loss of her entire life savings.
An 81-year-old grandmother has been left contemplating suicide after losing her entire $850,000 retirement fund to a "pump and dump" scam. The victim, Linda Codling, had worked for 66 years and was planning her retirement when she received a message on WhatsApp in January, inviting her to learn about short-term stock market investments. "I thought, 'Well, I'm about to retire, that might be something interesting for me to do,'" she told the Daily Mail. "So I said I'd like to have a look at it."
The scammers, posing as a team led by economics guru Stephen Koukoulas – known as "The Kouk" and a former senior advisor to Prime Minister Julia Gillard – built trust by successfully guiding her through an initial profitable trade. "It was nice to be part of this group, because I live on my own and I quite enjoyed it," Codling recalled.
Sophisticated Scheme Unfolds
The fraudsters then encouraged her to invest heavily in specific stocks, including selling her gold and silver to maximize her investment. As her confidence grew, they became increasingly enthusiastic about two particular stocks, strongly urging her to invest as much as possible. After she transferred her savings, the stocks abruptly crashed, losing 99 percent of their value.
Codling was told by the scammers that an issue had arisen in America but that "Stephen and the team" were meeting with the FBI and that she would be fully reimbursed. She was assured the matter would be settled by July. However, when July passed with no resolution and her so-called advisers disappeared, she realized she had been defrauded.
Devastating Financial and Emotional Toll
"I could not believe it. I thought, 'Oh, I am going to kill myself. I can't cope. I just can't face the future,'" Codling said. She has since received medical treatment for stress and is unable to sleep. NSW Police informed her that the operation was based offshore and they were powerless to assist due to its sophisticated nature.
Her dream of purchasing a home by the ocean and retiring has been shattered. She now anticipates having to work as long as possible and rely on the government pension. "She is devastated. She feels betrayed and frightened about what the future now holds," said her son, Andrew Macnab, who has launched a GoFundMe page to help recover some of the lost funds. He described the scam as "extremely sophisticated" and warned that it could happen to anyone.
Macnab explained that "pump and dump" schemes involve fraudsters artificially inflating a stock's price to attract investors before selling their own holdings, causing the price to collapse. "For mum, this isn't simply money lost on a share transaction. She lost everything, a lifetime of hard work and being responsible," he added.
Codling expressed gratitude for the fundraiser but felt uncomfortable about its necessity. "I would be very grateful [for the help]," she said. "Looking back now, I wish I had gone knocking on Stephen Koukoulas' door in Canberra."