[Congressional Record Volume 155, Number 127 (Thursday, September 10, 2009)]
[Senate]
[Page S9268]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CASEY (for himself, Mrs. Gillibrand, Mr. Kohl, and Mrs. 
        Shaheen):
  S. 1659. A bill to enhance penalties for violations of securities 
protections that involve targeting seniors; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. CASEY. Mr. President, I rise today to join with Senators Kohl, 
Gillibrand and Shaheen to introduce the Senior Investor Protections 
Enhancement Act of 2009.
  This important legislation would increase the fines imposed on those 
who commit securities violations against seniors and thereby provide 
additional security to a group who relies on their savings for 
survival.
  Seniors increasingly rely on private investments for their 
retirement. Over the last 30 years, traditional employer sponsored 
pension plans, known as defined benefit plans, have been on the 
decline. In 1975, 88 percent of private-sector workers were covered by 
defined benefit plans; by 2005, that number had shrunk to 33 percent of 
the private-sector workforce.
  Today, seniors control nearly $15 billion in assets. These 
individuals face complicated decisions about how to best stretch their 
hard earned savings throughout their retirement.
  Unfortunately, these assets are at risk from traditional fraud and 
Ponzi schemes. Seniors are often offered complicated investment tools 
such as reverse mortgages and various annuity products. While these 
products can be very valuable to Americans generally and seniors 
specifically, they can also be abused by unscrupulous actors.
  In fact, research shows that senior citizens face serious risks from 
fraudulent salesmen. A MetLife study found that seniors incur an 
estimated $2.6 billion in losses due to financial abuse each year. In 
total, seniors account for more than half of all investor complaints 
received by state securities regulators.
  During the last Congress, under the leadership of Senator Kohl, the 
Aging Committee held a hearing to examine some of the questionable 
practices that so-called senior financial investment specialists use to 
gain access to the retirement savings of older Americans. A report by 
the Committee revealed that many seniors have lost their life savings 
because they followed investment advice ill-suited to their retirement 
needs and life expectancy.
  The Senior Investor Protections Enhancement Act will address these 
issues by increasing the penalties for existing securities violations 
by an additional $50,000 for financial crimes committed by those 62 and 
higher, the age at which many orient their investments to be in 
conjunction with social security eligibility. Violations could include 
selling them products that are unsuitable for their age, failing to 
disclose fees, charging large penalty fees, or switching the investment 
product actually sold from the one that was marketed.
  We need to enhance the protections afforded to seniors. Please join 
us in support of the Senior Investor Protections Enhancement Act of 
2009.

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