[Congressional Record Volume 143, Number 158 (Monday, November 10, 1997)]
[Senate]
[Page S12480]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               TELEMARKETING FRAUD PREVENTION ACT OF 1997

 Mr. KYL. Mr. President, I rise in support of the Telemarketing 
Fraud Prevention Act of 1997. It is long past time to punish criminals 
who have perpetrated fraudulent telephone scams.
  Telemarketing fraud swindles Americans out of $40 billion dollars 
every year, but one group in particular is especially hard hit: senior 
citizens. In fact, the Attorney General recently noted that the elderly 
are subject to a barrage of high-pressure sales calls, sometimes as 
many as five or more calls every day.
  In a recent Associated Press story, the chief of the Financial Crimes 
Section of the Federal Bureau of Investigation, Mr. Chuck Owens, 
discussed criminals who commits telemarketing fraud. Mr. Owens stated 
as follows:

       We estimate that, conservatively, 50% of the time, these 
     people victimize the elderly . . . Many times you've got 
     senior citizens who basically need the money that they've 
     saved to continue to provide for themselves in their elder 
     years, and we've had numerous instances where they've taken 
     every cent.

  Over the past year, one especially heinous scheme has gained 
popularity among criminals. Past victims of telemarketing fraud are 
often called by a second swindler who promises to help recover the 
money lost in the first scam. However, once the victims turn over their 
recovery fees, the second swindler fails to lift a finger to help.
  The Telemarketing Fraud Prevention Act directs the U.S. Sentencing 
Commission to provide enhanced penalties for those persons convicted of 
telemarketing fraud, and allows prosecutors to seek even greater 
penalties for those who mastermind fraudulent schemes. In addition, the 
act requires offenders to forfeit their ill-gotten gains, much in the 
same manner as drug dealers are forced to turn over the fruits of their 
crimes.
  Although the original version of this bill mandated specific 
increases in sentencing levels, those provisions were removed during 
discussion with the minority in order to move this legislation forward. 
However, I note that the House recently approved legislation nearly 
identical to the original version of this bill, and I recognize that 
final passage of this bill must reconcile the House and Senate 
positions on the underlying issues. I am hopeful that the final version 
will contain the strongest possible deterrents for those who might 
consider taking up the unsavory practice of telemarketing fraud.
  Mr. President, this bill presents an opportunity to curb the growing 
problem of telemarketing fraud, a crime which is especially cruel when 
targeted against the elderly and infirm. We should not let this 
opportunity pass.

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