[Congressional Record Volume 141, Number 65 (Friday, April 7, 1995)]
[Extensions of Remarks]
[Page E869]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


               THE CONSUMER FRAUD PREVENTION ACT OF 1995

                                 ______


                   HON. FREDERICK K. (FRED) HEINEMAN

                           of north carolina

                    in the house of representatives

                         Friday, April 7, 1995
  Mr. HEINEMAN. Mr. Speaker, I am proud to introduce my first bill 
today, the Consumer Fraud Prevention Act of 1995.
  Last Friday, the North Carolina Attorney General filed another 
telemarketing fraud suit against individuals who prey on senior 
citizens. The victim, a 71-year-old woman. The cost--her life savings 
of $57,000. An elderly man in Raleigh recently lost $37,000. In Durham, 
an elderly lady lost $212,000 in a scam directed at seniors.
  Unfortunately, these have not been isolated incidents. Telemarketing 
scams are defrauding senior citizens and those who are especially 
vulnerable, like the mentally retarded, all across the United States. 
Another appalling story is that of the 79-year-old blind woman from 
Minnesota who lost her life savings in a sweepstake scam. She responded 
to a solicitation which invited her to enter a contest for large cash 
prizes. Along with a small entry fee she was required to answer a 
simple question. To advance in the contest she had to answer more 
questions and pay additional fees. In all, she lost $25,000.
  These fraudulent activities are not performed by legitimate 
companies, but by those who prey on the vulnerability of certain 
groups. That is why I am introducing this legislation.
  The Consumer Fraud Prevention Act directs the U.S. Sentencing 
Commission to increase penalties for those who purposefully defraud the 
vulnerable in our society and those who utilize international borders 
to evade prosecution. The legislation also requires mandatory victim 
restitution first, then asset forfeiture. Once the victim is repaid, 
the property seized from the defendant will be used to fund the 
national hotline to combat fraud.
  As a senior citizen myself, I am proud to offer this bipartisan 
legislation today on behalf of our Nation's senior citizens.


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