Legislation addresses fraud against seniors

Legislation that would increase penalties for people who commit securities violations against seniors was introduced in the Senate today. “Many seniors are discovering that their life savings may not be enough to last them throughout their retirement,” Herb Kohl, D-Wis., chairman of the Senate’s Special Committee on Aging, said in a press release. Mr. Kohl introduced the bill with Sen. Bob Casey, D-Pa. “As they turn to investments to bridge the gap, seniors need to know that they can trust the people who handle their money,” he said. The bill, titled the Senior Investor Protections Enhancement Act, would increase penalties for those who take advantage of investors 62 and older. Additional fines of up to $50,000 would be levied for violations, which could include selling unsuitable products to seniors or failing to disclose fees or lock-up periods for investments. The bill “would not interfere with legitimate investment advisers who recommend products and investments appropriate for their customers,” according to the press release. Americans 65 and older hold about $15 trillion in assets and seniors increasingly are offered complicated investments such as annuities and reverse mortgages, the release said. “While these products can be very valuable to Americans generally and seniors specifically, they can also be abused by unscrupulous actors,” it said. Seniors account for more than half of all investor complaints received by securities regulators, according to the release. The North American Securities Administrators Association Inc. of Washington, which represents state securities regulators, issued a release supporting the legislation. “The Casey-Kohl legislation will assist law enforcement and regulators to ensure that those who take advantage of our nation’s elderly will be held accountable,” North Dakota securities commissioner and NASAA President Karen Tyler said in a release.