He fumbled with his driver’s license, standing inside an Augusta convenience store, trying to keep hold of the sack of cash tucked under his arm. His wife waited in the car.
His failing eyesight made it difficult to follow the instructions on the bitcoin ATM, but he had Ryan’s calm voice coaching him on the cellphone pressed to his ear.
“Just relax,” Ryan told him. “I’ll talk you through it.”
After several attempts, he successfully set up a digital wallet and began feeding $10,000 into the machine — one $100 bill at a time. It took so long, this being his first purchase of cryptocurrency, that his wife came in after 45 minutes to check on him and helped to insert the remaining bills.
“We were terrified because we didn’t know what we were doing,” Larry Cook recalled. “But we thought we were doing a good thing.”
Over the next seven months, from October 2023 to April 2024, Larry and Barbara Cook would repeat the same process over 30 times, unknowingly giving away $1.3 million from their retirement accounts in a government impersonation scam.
The scammers introduced their ruse with accusations and threats and wound up convincing the Cooks to use their own money to help investigate and trap bad actors on the “dark web.”
The scam would take the Cooks to gas stations and bodegas across Maine and in Florida, where they spend winters. Both 80 at the time, they drove to places they’d never been, into neighborhoods they normally wouldn’t go. They even booked a last-minute flight to Portland and drove through a snow storm to meet the scammers’ demands. In the end they were handing over taped-up cardboard boxes filled with cash or gold bullion to strangers who came to their homes in broad daylight or the pitch black night.
Week after week, they spent hours on the phone with Ryan Terry, ostensibly a Federal Trade Commission investigator. They would come to trust him, even appreciate his kindness, as he talked them through the painstaking process of gradually syphoning off their life savings.
They transferred retirement funds to a TD Bank savings account, then made $10,000 to $150,000 withdrawals so they could send bitcoin to a U.S. Treasury holding account, or cash or gold to government safe houses. They were told all of it would be returned to them when the investigation ended.
Neither the account nor the safe houses ever existed.
“The minute I put money in the machine, it was gone out of the country,” Larry Cook said during a recent interview at the couple’s home in China, a rural town of about 4,500 near Augusta.
All the while, they thought they were helping the FTC catch criminals involved in identity theft and money laundering. They promised to keep their involvement secret, even fending off questions from a concerned family member and bank employees. They had receipts and letters signed by government officials — solid proof it was for real. They didn’t notice the odd wording, faded government seals and chronic misspelling.
“We had a letter signed by Janet Yellen,” Larry Cook said, referring to the former U.S. treasury secretary.
Two years later, the Cooks are still dealing with fallout from the scam, trying to avoid losing Social Security benefits and paying taxes on the money they lost, which counted as income in 2023 and 2024. The Internal Revenue Service recently agreed they don’t have to pay federal income tax on the scammed money. Maine legislators are working on a plan so they won’t have to pay state income taxes. But they’re still on the hook for a $24,000 underpayment to Medicare and Medicaid.
The Cooks say they are sharing their story now because they are people of faith — Larry Cook is a retired pastor from Pennsylvania who established two orphanages in Kenya — and they believe they have been called to warn others against being scammed.
Before you judge them for falling prey to one of the fastest growing scams, they want you to know that they didn’t think they would ever be conned like this either.
Scam victims are prevalent across every generation. But while people ages 30-39 reported the greatest incidence of fraud in 2024 — 178 scams per 100,000 population, with a median loss of $450 — people age 80 and up reported the greatest losses, in part because they have more savings — 85 scams per 100,000 population, with a median loss of $1,650, according to the FTC.
“You think you’re smarter than them, whoever they are,” Barbara Cook said. “But we’re also of the generation that we trust the authority figures in our lives, especially government officials.”
How it started
They were shopping at the Augusta Walmart on Sept. 21, 2023, when Barbara Cook got a cellphone call from people who said they were security personnel with Amazon and TD Bank. She was having trouble accessing her Amazon account at the time and had sent several emails seeking help, which lent credence to the call.
She handed the phone to Larry, and from then on he was the scammers’ primary contact. They said his name and Social Security number were being used on the dark web to make purchases in New York state and California, which the Cooks denied making. The calls continued for days, including from FTC representatives, who accused the Cooks of being involved in illegal financial activity and threatened to investigate their entire family.
Trying a different tack, they also said the Cooks’ savings were at risk of being stolen by cyber scammers and had to be moved into safer accounts. They would close all accounts associated with Larry Cook’s current Social Security number and give him a new number. They emailed documents purportedly signed by Yellen and other officials to prove their legitimacy. Then they assigned Ryan Terry to handle the case.
“He insisted that we cooperate with a current FTC criminal investigation involving money laundering, bank fraud and other issues,” Larry Cook wrote in an account of their experience.
When the Cooks resisted his pressure, Ryan threatened them with a federal indictment, “which would involve heavy court costs, legal fees and the possibility of ruining not only (our) reputation, but also that of our two sons, both successful businessmen,” Larry Cook said.
In a final appeal, Ryan told the Cooks it was their “patriotic duty” to assist in the investigation and prosecution of these perpetrators. They reluctantly agreed. In early October 2023, they signed and returned letters of consent bearing what appeared to be the insignia of the U.S. Treasury Department.
“But we were warned that all activity and information would have to be kept in total confidentiality, including from family members, our accountant, our lawyer — everyone,” Larry Cook said.
Throughout their ordeal, they never told a soul.
The trouble with being ‘too nice’
Looking back, the Cooks still can’t believe they did what they did, but they know exactly why they fell prey to one of the fastest growing scams.
The number of complaints about government impersonation scams increased 50% over the last three years, from 11,554 incidents worth $240.6 million in 2022 to 17,367 incidents worth $405.6 million in 2024, according to the FBI’s cybercrime center.
Among people age 60 and up, scams involving cryptocurrency more than tripled in the same period, from 9,991 incidents worth $1 billion to 33,369 incidents worth $2.8 billion.
“I look at it now and it seems so easy to say ‘no,’ but it’s not when you’re right in the middle of it,” Larry Cook said. “At the time, we prayed for God’s direction, but on this God was silent. Once you get enmeshed in the situation, it’s almost like Stockholm syndrome.”
The Cooks describe themselves as hardworking, honest, Christian people who don’t lie and expect others to tell the truth, especially those in authority.
Now 82, the Cooks met when they were 10 years old and attended the same Baptist church in Philadelphia. They began dating at 15 and married 61 years ago, when Larry was a senior in college. They moved to Maine in 2013 to be near family in Yarmouth and China.
Larry Cook made his fortune early, working first for an auto parts manufacturer, then as vice president of human resources for Johnson Matthey, a multinational precious metals and chemicals company.
At age 40, when he was ordained in the Church of the Nazarene, he left the corporate world with hefty retirement savings. He knew his earnings as a pastor would not be so robust, but he was raised to be a penny-pincher. Barbara Cook went back to work as an executive secretary.
Larry Cook stresses in multiple interviews that they thought they were helping to stop criminals from defrauding others.
Helping people is why he went into ministry, he said. His corporate bosses used to say he was “too nice.” They counted on him to reel in difficult clients and deliver difficult news to employees. Even in retirement, he’s still promoting Kenya’s Kids, the all-volunteer Christian ministry and children’s homes he started in the East African country in 1997.
“I’ve always wanted to help people,” he said. “God created me that way.”
The scammer’s playbook
The Cooks experienced many of the tools in the scammer’s toolbox — high pressure, threats, intimidation, fast-talking, fast-moving, emotional manipulation and what seemed to be a deep knowledge of their personal finances, family life and day-to-day whereabouts.
“They had information before we told them anything,” Larry Cook said. The couple isn’t sure whether the scammers got their initial contact and financial information through Barbara’s Amazon account or from TD Bank.
The Cooks got to know Ryan, the scammer who spoke with them almost daily. He had a slight foreign accent and called them sir and madam, things that seem like yellow flags in retrospect. But he calmed them down when they were stressed and shared personal information about himself.
“We liked Ryan,” Larry Cook said. “He was so nice. He talked about his wife and family. He said he wanted to meet us. He wanted us to go to Washington. He told us we were doing great.”
The Cooks also came to believe Ryan was tracking them through a WhatsApp account he helped to install on their phones. It allowed him to call them anytime and talk them through cryptocurrency purchases and pickups of cash and gold.
“When I was driving to a bodega in Lewiston and couldn’t find a parking space, he told me spaces were available right around the corner,” Larry Cook said. “It was like he was watching me.”
Showing that kind of familiarity is a prime feature of the scammer’s playbook, much like a psychic demonstrates personal knowledge in front of a large audience, said Dan Simons, a psychology professor at the University of Illinois Urbana-Champaign. He and Christopher Chabris, a cognitive scientist, co-authored a book on scams, “Nobody’s Fool: Why We Get Taken In and What We Can Do About It.”
“There’s a lot of information online that’s available to everyone,” Simons said. “(The scammer) was probably on Google Maps and could see the area. They give you just enough information to make it sound like they know things about you.”
Simons said most cyber scams are run by international crime syndicates from call centers in places like Myanmar, Pakistan and India. Often they’re staffed by victims of human trafficking who have no choice in the matter.
Most scammers also have a virtual script based on a lot of trial and error, Simons said. They’re happy when someone suspects it’s a scam and hangs up because they don’t want to waste time.
“They don’t have to catch everybody. They only have to catch a few,” Simons said. “It’s not just a lone con artist anymore. It’s organized crime on a massive scale.”
The proliferation of largely unregulated bitcoin machines also makes it easier to scam the uninitiated, Simons said. In September, Washington, D.C., Attorney General Brian Schwalb sued Athena Bitcoin, one of the largest operators of bitcoin ATMs, charging that it neglected to implement anti-fraud measures when his office found that 93% of its deposits came from scams.
The Cooks likely were more vulnerable because they were less savvy about technology, they had a sizable nest egg and they were especially trusting, Simons said. But we all want to believe that people are telling us the truth.
“We tend to have a truth bias and it takes a lot of effort to counter that,” Simons said. “(Getting scammed is) traumatic, it’s embarrassing and it’s great that they’re willing to share their experience so others may learn from it.”
How it ended
Ryan kept moving the goal posts, telling the Cooks repeatedly that “this will be the last time.” They never did tell anyone, not even their 20-something grandson when he interrupted their first bitcoin purchase. He pressed them to know why they were buying bitcoin. He even called later that day because he was worried about them.
“I told him we knew what we were doing,” Barbara Cook recalled. “I told him, ‘You just have to trust me on this.’”
They purchased and transferred cryptocurrency from convenience stores in Augusta, Waterville, Lewiston, Freeport, Portland and Naples, Florida. They struggle to remember exactly where, saying the experience is too painful to remember details they’d rather forget.
They became friendly with bank tellers and managers at TD Bank branches in both states. They went to different branches because most had limited amounts of cash on hand, and they succeeded in dissuading any serious intervention.
“All of them asked if I was being scammed,” Larry Cook said. “A few had me sign a statement. I wouldn’t lie. I told them, ‘It’s my money and you don’t have to know what it’s for.’ A bank manager in Naples said he was obligated to notify bank security and I said, ‘Please do.’”
At some point Ryan added gold to the mix, coaching the Cooks on how to buy bullion online and have it delivered to their homes. Six times “undercover” couriers picked up cardboard boxes filled with cash or gold — four times in Maine and twice in Florida. The value of each package ranged from $50,000 to $150,000.
In early 2024, the scammers seemed to grow skittish, the Cooks said, and Ryan indicated that TD Bank might be audited. He had them open a savings account with Chase Bank, where they were treated well, Larry Cook said.
“I was getting a lot of questions at TD Bank, so it became clear that we weren’t going to get more than $20,000 at a time,” he said.
In October 2024, TD Bank pleaded guilty and was fined $1.8 billion for failing to maintain an anti-money laundering program and conspiring to commit money laundering. Several bank employees also were charged. “By making its services convenient for criminals, TD Bank became one,” U.S. Attorney General Merrick Garland said at the time.
TD Bank declined to discuss its fraud prevention protocols. A spokesperson said the company “is committed to supporting clients who report they may have fallen victim to a scam” and it provides resources to help customers avoid them.
The last cash transfer took place on April 8, 2024. The Cooks fed $50,000 into a bitcoin machine in Florida. Their role in the investigation was over. They were relieved.
But when they tried to call Ryan to find out how and when their $1.3 million would be returned, his WhatsApp account had been deleted. The cold reality sank in.
“My first reaction was to shame myself and blame myself,” Larry Cook said. “I know I’m not stupid, but I made a lot of stupid decisions.”
‘We won’t ask you for money’
The Cooks reported the scam to federal, state and local authorities.
FBI agents spent two days in their home, reviewing all of their documents and purging their devices of any malware. They told the Cooks last week that they don’t expect to recover their money, but they continue to investigate and use their experience to train other agents.
The FBI declined to discuss the Cooks’ case but responded to questions about similar scams.
“No legitimate law enforcement or federal agency is ever going to call or email you demanding payment, threatening arrest, or requesting personal or sensitive information,” said Kristen Setera, spokeswoman for FBI Boston. “We’re not going to ask you to send us large sums of your own money to help us catch criminals, or for you to mislead anyone about why you are making the withdrawal. Legitimate investigations simply don’t work this way.”
While the Cooks’ seven-month ordeal was at turns terrifying, exhausting, all-consuming and ultimately traumatic, they admit they were deflated afterward. It had been exciting, especially when they were fully absorbed into their roles as operatives in a federal investigation.
Family members were shocked to learn of the scam but have been understanding and supportive, the Cooks said. They have shared their story at church and community meetings in Maine and Florida, where audience members lined up afterward to tell their own scam stories.
They are thankful for the prayers and support of family and friends, especially as Larry deals with macular degeneration and Barbara is being treated for lung cancer. And they are grateful to still have some financial resources so they can move to a retirement community in Pennsylvania. Their home on China Lake is up for sale.
“We’re not destitute and we’re being careful,” Larry Cook said. “But we’re not enjoying our retirement as we planned. Our life is much diminished.”
Adding insult to injury
The Cooks are now wrangling with income tax and Social Security impacts of an $802,000 increase in their 2023 income and a $508,000 increase in their 2024 income as a result of fraud.
After a year of negotiating, and at the urging of U.S. Sen. Susan Collins, R-Maine, the IRS capitulated, refunding $161,000 that the Cooks paid up front on the retirement disbursements and writing off $243,000 that they still owed.
Maine Revenue Services is poised to write off $60,000 that the Cooks owe on their state tax returns, and legislators are planning to change state law so $40,000 that the couple paid up front may be refunded eventually.
“This is a bipartisan, all-hands-on-deck situation,” said Rep. Dan Sayre, D-Kennebunk, House chair of the Legislature’s taxation committee. “It’s unfortunate that these scams are getting more sophisticated. What’s happening to (the Cooks) is unjust and we need to correct it.”
But so far, Social Security has been intractable. Under federal law, the Cooks’ financial losses cannot be deducted from their income in assessing Medicare and Medicaid premiums, an administrative law judge said in a letter to Larry Cook last month.
The judge acknowledged the Cooks experienced a “significant hardship” but said being scammed isn’t among the qualifying life-changing events that can trigger a recalculation of premiums, or allow an independent decision if the perpetrators haven’t been convicted of fraud or theft.
With little chance of that happening, Social Security is deducting a combined $1,000 from the Cooks’ $3,300 monthly benefits in 2025 and 2026 to offset a $24,000 underpayment to Medicare and Medicaid, they said.
“It’s not over and it won’t be over until this situation is resolved,” Larry Cook said. “I’m not anti-government, but when this kind of thing happens — they say it’s the law, but the law never imagined fraud like this.”
This story was originally published by the Maine Trust for Local News. Kelley Bouchard can be reached at [email protected].
