As Jo Hurley’s husband bravely fought for his life in Whanganui Hospital, scammers convinced her to invest $350,000 in a bogus investment scheme then stole the inheritance proceeds of her dead mother’s house.

The “mule” who received Hurley’s money has been identified by police, and is believed to be linked to several other scams totalling north of $1 million.

But police are yet to arrest the man, despite significant evidence against him and fears he is still targeting new victims.

Hurley is speaking out to put pressure on banks and authorities to stop hard-working Kiwi families from being fleeced of their life savings, as international criminals siphon an estimated $200m a year from New Zealanders, with little prospect of being caught.

“I do my best to stay positive and not feel too guilty about what I’ve done,” Hurley told the Herald. “That money was an inheritance that my grandparents worked hard for and I’ve gone and f***ed it up.”

Earlier this year, Hurley, 43, and her brother dissolved a family trust that held about $700,000 from the sale of their late mother’s house.

Hurley’s husband Jayson, 48, was on the supported living benefit due to serious health problems, after being diagnosed with Crohn’s disease and suffering three heart attacks last year.

He has been in and out of hospitals. The pair have two young children.

Hurley, a medical administrator, said Work and Income planned to deduct money from her husband’s benefit due to her inheritance, so she decided to invest the money in a term deposit to ensure it was generating a decent return.

Initially, she deposited the money with her local bank ANZ but then found a website comparing term deposit interest rates and entered her details.

Jo Hurley lost $350,000 in a Citibank-branded investment scam while her husband Jayson was gravely ill in critical care. Photo / Bevan Conley

She was contacted by a man calling himself Matthew Read who claimed to be a Citibank portfolio manager. He discussed investment opportunities and convinced Hurley to withdraw her money from ANZ and invest $300,000 through his company in term deposits.

Her husband’s health had deteriorated and he was readmitted to hospital. She was at his bedside as she spoke by phone to the scammer.

“I told him straight up, ‘My husband is sick, he’s in the critical care unit and Winz is breathing down my neck, so I need to make as much money as possible’.”

Juggling hospital visits, work responsibilities and school drop-offs, Hurley sent Read copies of her passport and driver’s license, supposedly to meet anti-money laundering compliance.

She then received payment invoices with details of an ASB “holding account”, which she believed was under her own name.

Read told her ANZ would have a daily cash limit so she should make three separate transfers of $100,000 over consecutive days, which she did on May 1, 2 and 3, via internet banking.

She was then sent log-in details to a fake online client “portal” where she could see her money earning interest.

On May 19, Read convinced her to send a further $50,000 to purchase high-interest bonds, telling her the investment opportunity was oversubscribed and she would have to move quickly.

The victim's husband was in the critical care unit at Whanganui Hospital when scammers fleeced her of her inheritance. Photo / Bevan Conley

She made the money transfer that night.

Four days later she received a call from ANZ saying ASB had concerns about the money transfers and “this definitely has the hallmarks of a scam”.

Hurley realised she had been duped.

“I felt so sick. I thought I was going to vomit. I just couldn’t stop crying.”

She emailed Read asking for her term deposits to be closed and her money refunded. He never replied.

Hurley said she didn’t consult her husband about the investment because it was her money and he was very sick.

“I was doing everything on my own. I thought I’ll just do it myself.

“I feel so stupid that I didn’t listen to my gut. My gut questioned it and I didn’t listen. I thought I was doing the right thing.”

ANZ launched an investigation and ASB froze the recipient account but was only able to retrieve $50,000 of Hurley’s money.

Hurley visited ASB and said staff confirmed there was no account under her name and the account in question was “under investigation”.

She contacted police and the case was sent to Auckland’s financial crime unit.

The family’s situation then got worse. On June 6, Jayson was rushed to hospital for emergency bowel surgery. Hurley then tested positive for Covid.

On June 21 police told Hurley they had identified the mule who received her money. But seven weeks on they’re yet to make an arrest.

Since being scammed, Hurley had been under immense emotional stress and was forced to take time off work.

She has now complained to ANZ and the Banking Ombudsman.

Hurley believes ANZ should bear some responsibility for her loss, as she thinks the large money transfers in quick succession should have raised red flags.

She is also critical of the banking system for not having checks in place to match bank account names and numbers, like in the UK.

“I want my $300,000, it’s not fair. I believe it’s negligence because the account I expected the money to go to wasn’t in my name.

“Pressure needs to be put on people to make the right decision. In my mind, the right decision is to refund my money, but I know that probably won’t happen.”

She is frustrated the mule is not in custody and that the scammers are likely stealing more money from fresh victims.

“They’re terrible people.”

ANZ told the Herald it sympathised with Hurley. The case was still under investigation.

It noted the four payments were initiated by the customer using internet banking and sent to a valid New Zealand bank account, with each payment triggering two-factor authentication code messages.

The bank was always investigating ways to improve its payment systems, detect fraud and protect customers. While a confirmation of payee system could add “another layer” of protection, this had not eliminated scams in the UK.

“We continue to remind customers to be vigilant, they should be particularly wary of unexpected phone calls, text messages and social media interactions and we urge people to familiarise themselves with ways to stay safe.”

Police would not comment while the investigation was ongoing but said they were committed to investigating financial scams.

“We urge anyone who sees something online they think might be attractive or a great deal to do their research, speak to friends and family, check with the FMA, and be vigilant about anything that seems out of the ordinary.”

Lane Nichols is a senior journalist and deputy head of news based in Auckland. Before joining the Herald in 2012, he spent a decade at Wellington’s Dominion Post and Nelson Mail.