[Congressional Record Volume 167, Number 67 (Monday, April 19, 2021)]
[House]
[Pages H1910-H1913]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            NATIONAL SENIOR INVESTOR INITIATIVE ACT OF 2021

  Ms. PRESSLEY. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 1565) to create an interdivisional taskforce at the 
Securities and Exchange Commission for senior investors.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1565

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Senior Investor 
     Initiative Act of 2021'' or the ``Senior Security Act of 
     2021''.

     SEC. 2. SENIOR INVESTOR TASKFORCE.

       Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 
     78d) is amended by adding at the end the following:
       ``(k) Senior Investor Taskforce.--
       ``(1) Establishment.--There is established within the 
     Commission the Senior Investor Taskforce (in this subsection 
     referred to as the `Taskforce').
       ``(2) Director of the taskforce.--The head of the Taskforce 
     shall be the Director, who shall--
       ``(A) report directly to the Chairman; and
       ``(B) be appointed by the Chairman, in consultation with 
     the Commission, from among individuals--
       ``(i) currently employed by the Commission or from outside 
     of the Commission; and
       ``(ii) having experience in advocating for the interests of 
     senior investors.
       ``(3) Staffing.--The Chairman shall ensure that--
       ``(A) the Taskforce is staffed sufficiently to carry out 
     fully the requirements of this subsection; and
       ``(B) such staff shall include individuals from the 
     Division of Enforcement, Office of Compliance Inspections and 
     Examinations, and Office of Investor Education and Advocacy.
       ``(4) No compensation for members of taskforce.--All 
     members of the Taskforce appointed under paragraph (2) or (3) 
     shall serve without compensation in addition to that received 
     for their services as officers or employees of the United 
     States.
       ``(5) Minimizing duplication of efforts.--In organizing and 
     staffing the Taskforce, the Chairman shall take such actions 
     as may be

[[Page H1911]]

     necessary to minimize the duplication of efforts within the 
     divisions and offices described under paragraph (3)(B) and 
     any other divisions, offices, or taskforces of the 
     Commission.
       ``(6) Functions of the taskforce.--The Taskforce shall--
       ``(A) identify challenges that senior investors encounter, 
     including problems associated with financial exploitation and 
     cognitive decline;
       ``(B) identify areas in which senior investors would 
     benefit from changes in the regulations of the Commission or 
     the rules of self-regulatory organizations;
       ``(C) coordinate, as appropriate, with other offices within 
     the Commission, other taskforces that may be established 
     within the Commission, self-regulatory organizations, and the 
     Elder Justice Coordinating Council; and
       ``(D) consult, as appropriate, with State securities and 
     law enforcement authorities, State insurance regulators, and 
     other Federal agencies.
       ``(7) Report.--The Taskforce, in coordination, as 
     appropriate, with the Office of the Investor Advocate and 
     self-regulatory organizations, and in consultation, as 
     appropriate, with State securities and law enforcement 
     authorities, State insurance regulators, and Federal 
     agencies, shall issue a report every 2 years to the Committee 
     on Banking, Housing, and Urban Affairs and the Special 
     Committee on Aging of the Senate and the Committee on 
     Financial Services of the House of Representatives, the first 
     of which shall not be issued until after the report described 
     in section 3 of the National Senior Investor Initiative Act 
     of 2021 has been issued and considered by the Taskforce, 
     containing--
       ``(A) appropriate statistical information and full and 
     substantive analysis;
       ``(B) a summary of recent trends and innovations that have 
     impacted the investment landscape for senior investors;
       ``(C) a summary of regulatory initiatives that have 
     concentrated on senior investors and industry practices 
     related to senior investors;
       ``(D) key observations, best practices, and areas needing 
     improvement, involving senior investors identified during 
     examinations, enforcement actions, and investor education 
     outreach;
       ``(E) a summary of the most serious issues encountered by 
     senior investors, including issues involving financial 
     products and services;
       ``(F) an analysis with regard to existing policies and 
     procedures of brokers, dealers, investment advisers, and 
     other market participants related to senior investors and 
     senior investor-related topics and whether these policies and 
     procedures need to be further developed or refined;
       ``(G) recommendations for such changes to the regulations, 
     guidance, and orders of the Commission and self-regulatory 
     organizations and such legislative actions as may be 
     appropriate to resolve problems encountered by senior 
     investors; and
       ``(H) any other information, as determined appropriate by 
     the Director of the Taskforce.
       ``(8) Request for reports.--The Taskforce shall make any 
     report issued under paragraph (7) available to a Member of 
     Congress who requests such a report.
       ``(9) Sunset.--The Taskforce shall terminate after the end 
     of the 10-year period beginning on the date of the enactment 
     of this subsection.
       ``(10) Senior investor defined.--For purposes of this 
     subsection, the term `senior investor' means an investor over 
     the age of 65.
       ``(11) Use of existing funds.--The Commission shall use 
     existing funds to carry out this subsection.''.

     SEC. 3. GAO STUDY.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to Congress and the Senior Investor 
     Taskforce the results of a study of financial exploitation of 
     senior citizens.
       (b) Contents.--The study required under subsection (a) 
     shall include information with respect to--
       (1) economic costs of the financial exploitation of senior 
     citizens--
       (A) associated with losses by victims that were incurred as 
     a result of the financial exploitation of senior citizens;
       (B) incurred by State and Federal agencies, law enforcement 
     and investigatory agencies, public benefit programs, public 
     health programs, and other public programs as a result of the 
     financial exploitation of senior citizens;
       (C) incurred by the private sector as a result of the 
     financial exploitation of senior citizens; and
       (D) any other relevant costs that--
       (i) result from the financial exploitation of senior 
     citizens; and
       (ii) the Comptroller General determines are necessary and 
     appropriate to include in order to provide Congress and the 
     public with a full and accurate understanding of the economic 
     costs resulting from the financial exploitation of senior 
     citizens in the United States;
       (2) frequency of senior financial exploitation and 
     correlated or contributing factors--
       (A) information about percentage of senior citizens 
     financially exploited each year; and
       (B) information about factors contributing to increased 
     risk of exploitation, including such factors as race, social 
     isolation, income, net worth, religion, region, occupation, 
     education, home-ownership, illness, and loss of spouse; and
       (3) policy responses and reporting of senior financial 
     exploitation--
       (A) the degree to which financial exploitation of senior 
     citizens unreported to authorities;
       (B) the reasons that financial exploitation may be 
     unreported to authorities;
       (C) to the extent that suspected elder financial 
     exploitation is currently being reported--
       (i) information regarding which Federal, State, and local 
     agencies are receiving reports, including adult protective 
     services, law enforcement, industry, regulators, and 
     professional licensing boards;
       (ii) information regarding what information is being 
     collected by such agencies; and
       (iii) information regarding the actions that are taken by 
     such agencies upon receipt of the report and any limits on 
     the agencies' ability to prevent exploitation, such as 
     jurisdictional limits, a lack of expertise, resource 
     challenges, or limiting criteria with regard to the types of 
     victims they are permitted to serve;
       (D) an analysis of gaps that may exist in empowering 
     Federal, State, and local agencies to prevent senior 
     exploitation or respond effectively to suspected senior 
     financial exploitation; and
       (E) an analysis of the legal hurdles that prevent Federal, 
     State, and local agencies from effectively partnering with 
     each other and private professionals to effectively respond 
     to senior financial exploitation.
       (c) Senior Citizen Defined.--For purposes of this section, 
     the term ``senior citizen'' means an individual over the age 
     of 65.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Massachusetts (Ms. Pressley) and the gentleman from North Carolina (Mr. 
McHenry) each will control 20 minutes.
  The Chair recognizes the gentlewoman from Massachusetts.


                             General Leave

  Ms. PRESSLEY. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Massachusetts?
  There was no objection.
  Ms. PRESSLEY. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise in support of H.R. 1565, the Senior Security 
Act of 2021, which would help protect America's senior investors who 
can be disproportionately vulnerable to investment-related frauds.
  In 2017 alone, State securities regulators conducted nearly 4,709 
investigations, leading to more than 2,100 enforcement actions, 
including 255 criminal prosecutions. These actions have resulted in 
approximately $486 million in restitution for harmed investors, nearly 
$79 million in fines and/or penalties, and 1,985 years in incarceration 
or probation being ordered.
  The National Council on Aging estimated that elder financial abuse 
and fraud costs older Americans from $2.9 billion to $36.5 billion 
annually. Moreover, in a February bulletin, the FINRA, the NASAA, and 
the SEC's Office of Investor Education and Advocacy noted that COVID-
19's unprecedented quarantines and social isolation may leave senior 
investors even more susceptible to financial fraud than ever before.
  This bill would establish a Senior Investor Task Force within the 
U.S. Securities and Exchange Commission. In coordination and 
consultation with State securities administrators, self-regulatory 
organizations, Federal law enforcement agencies, and others, the task 
force would be charged with identifying issues related to investors who 
are older than 65 years of age. The bill would also require biennial 
task force reports and require the GAO to complete a study on senior 
financial exploitation.
  I strongly support the safety of America's senior investors and their 
right to enjoy the retirement funds that they have worked so hard to 
earn. I also support regulators and law enforcement in holding 
fraudsters who prey upon the elderly accountable.
  It is for all these reasons I urge my colleagues to join me in 
supporting the Senior Security Act of 2021.
  Madam Speaker, I reserve the balance of my time.
  Mr. McHENRY. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise in support of H.R. 1565, the Senior Security 
Act.

[[Page H1912]]

  I would like to thank my colleagues, Mr. Hollingsworth of Indiana and 
Mr. Gottheimer of New Jersey for their work on this important piece of 
bipartisan legislation that will strengthen current efforts to protect 
senior investors.
  Madam Speaker, American capital markets provide every mom-and-pop 
investor with the opportunity to realize the American Dream. Our 
capital markets allow individuals and families to grow their nest egg 
for retirement, their children to have an opportunity for college 
tuition, or to save and purchase a home.
  Moreover, as Americans age, they are an important part of the success 
and vibrancy of the U.S. capital markets. In fact, Americans over the 
age of 50 already account for roughly 77 percent of financial assets in 
the United States. To that end, fraud and exploitation of any kind in 
our capital markets threatens the integrity of our markets and harm 
investors seeking to build their nest eggs.
  It is especially problematic when the fraud targets senior investors. 
Protecting senior investors and preventing such predatory behavior 
within our financial markets is a goal that we all share, regardless of 
party. This bill will support the Securities and Exchange Commission's 
current efforts to protect against increasing instances of financial 
exploitation against senior investors.
  H.R. 1565 creates an interdivisional task force at the Securities and 
Exchange Commission to examine and identify challenges faced by senior 
investors.
  We already have some data on senior citizens who are targeted by 
financial exploitation. These statistics are alarming. Older Americans 
lose up to $36 billion each year to financial scams and abuse. One in 
five seniors have reported being victims of exploitation, and only a 
small number of cases of financial abuse are even reported. The rates 
of exploitation are only rising. In fact, The New England Journal of 
Medicine calls elder financial exploitation a virtual epidemic.
  There are concerns that the COVID-19 pandemic has only exacerbated 
the trend. In addition to Congress, many States are already taking 
action, and that is a good thing.
  This bipartisan bill is an important step for the Federal Government. 
The bill requires the SEC to identify current issues and challenges 
facing senior investors and to make policy recommendations for 
addressing these issues harming senior investors.
  Madam Speaker, protecting senior investors and safeguarding the 
integrity of our financial markets are objectives I believe we can get 
behind. In our duty to protect our constituents, especially those most 
vulnerable who contribute so much to society, we need to be helpful and 
supportive. For that reason, I urge my colleagues to support this bill, 
and I reserve the balance of my time.

                              {time}  1600

  Ms. PRESSLEY. Madam Speaker, I yield 3 minutes to the gentleman from 
New Jersey (Mr. Gottheimer), who is a sponsor of this legislation.
  Mr. GOTTHEIMER. Madam Speaker, I am honored to rise in support of the 
bipartisan Senior Security Act, which will help protect vulnerable 
seniors from hucksters and scam artists. I would like to thank my good 
friend, Congressman Trey Hollingsworth, for working with me on this 
crucial bill, and also Senators Susan Collins and Kyrsten Sinema, who 
have introduced companion legislation in the Senate.
  Since I took office, I have been committed to helping seniors save 
their hard-earned money for retirement, helping them cut their taxes 
and afford prescription drugs, and protecting Social Security and 
Medicare so that, at the end of the day, they can afford to stay in 
northern New Jersey and enjoy their lives with their friends, children, 
and grandchildren.
  Unfortunately, far too many of our seniors have had their hard-earned 
retirement savings stolen right out from under them when a scammer 
calls or shows up at their door. There are millions of seniors across 
the country who have been the victims of financial scams and abuses. It 
is appalling; it is offensive; and it is unacceptable.
  Older Americans lose approximately $3 billion each year to financial 
scams and abuse. Approximately 7 million Americans have been victims of 
exploitation, and that is only what is being reported. Only 1 in every 
24 cases of elder abuse actually gets reported.
  IRS impersonation calls and fraudulent tech support calls are among 
the most widely used and costly scams targeting older Americans. In 
fact, more than 2.5 million Americans have been targeted by scammers 
impersonating IRS officials, costing more than 15,800 taxpayers at 
least $80 million since 2013. More than 3 million Americans are victims 
of tech support scams or scammers pretending to be with a reputable 
tech company who persuade seniors to provide personal bank account 
information.
  My mom was even a victim of one of these scammers. Someone claiming 
to be an IRS agent threatened her. I remember she called me and thought 
that I had messed up her tax return, but it was a scammer.
  COVID scammers are also now targeting older Americans with promises 
of quicker access to vaccines or pandemic relief benefits, preying on 
those whose only wish is to hug their family members again.
  We are here today to do something about it by voting on the Senior 
Security Act to help protect American seniors from scams. My bipartisan 
bill creates a new senior investor task force at the SEC to fight back 
against these hucksters scamming our seniors. The task force will also 
identify challenges that senior investors encounter and areas within 
the SEC or self-regulatory organizations where senior investors would 
benefit from changes.
  The task force will also coordinate with other Federal regulators, 
State regulators, and law enforcement to ensure that we are doing as 
much as we can at every level of government to stop this. Our 
legislation will also make antifraud enforcement even more common by 
giving law enforcement stronger tools and information via the new 
senior investor task force.
  The task force will submit regular reports to Congress, outlining 
trends that are impacting senior investors. This will be a cop on the 
beat to make sure we keep up with the changes in financial scams and to 
be ahead of new issues as they arise.
  Our seniors have given us so much. We should always have their backs 
and help protect them from predators who want to take advantage of them 
during their twilight years. I urge my colleagues to support this 
commonsense, bipartisan bill.
  Mr. McHENRY. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Indiana (Mr. Hollingsworth), the coauthor of this bill.
  Mr. HOLLINGSWORTH. Mr. Speaker, I rise in support of this 
legislation.
  As I travel the district and travel across the State, I constantly 
get asked two very important questions: What is Washington doing for 
Americans? And, what is happening on a bipartisan basis in Washington, 
D.C.?
  When I travel back home this Thursday, I will be able to answer that 
this legislation checks both of those boxes. I am deeply proud to work 
with my good friend, Mr. Gottheimer, on this important legislation to 
keep our senior citizens safe from fraudsters and hucksters who are 
constantly pursuing them.
  Much has been spoken already in this Chamber about the ``what'' of 
this bill, but I wanted to emphasize the ``why.''
  It is for the 74-year-old Hoosier walking through our Jeffersonville 
office who has lost her life savings because she thought she was 
interfacing with the IRS.
  It is for the senior couple walking through our Franklin doors 
thinking they were helping get their grandson out of jail but, instead, 
were dealing with a huckster.
  It is for all the senior citizens across this country who are 
constantly getting the calls, constantly getting the phishing emails, 
constantly seeing text messages trying to get at their life savings. 
Those are the ones who report it. As Mr. Gottheimer said, only 1 in 24 
of these crimes gets reported.

  This is something we have to end. We have to get one step ahead. I 
can't wait to travel back home to the Hoosier State later this week and 
tell them this Chamber advanced a piece of legislation to protect our 
senior citizens, to protect Americans, and to get us one step ahead of 
those fraudsters.
  Ms. PRESSLEY. Mr. Speaker, I yield 2 minutes to the gentleman from 
Texas (Mr. Vicente Gonzalez).

[[Page H1913]]

  

  Mr. VICENTE GONZALEZ of Texas. Mr. Speaker, I rise today in support 
of H.R. 1565, the Senior Security Act.
  This commonsense legislation will provide much-needed information for 
policymakers and regulators to fine-tune protections for elderly 
investors.
  In south Texas, where we share the deep value of respect for our 
elders, we say society is judged on how we care for our parents, our 
grandparents, and beyond. We all know how closely financial health is 
tied to overall well-being. I am proud to support this legislation that 
equips us to identify better ways to protect our senior citizens and 
for them to protect themselves from fraud and scammers.
  This Senior Security Act aims to protect our seniors and prevent 
these attacks from happening. This legislation will build upon the 
Senior Safe Act by creating an interdivisional task force at the 
Securities and Exchange Commission to examine and identify challenges 
facing seniors and investors.
  Within 2 years of enactment, the U.S. Government Accountability 
Office must study and report the economic costs of the financial 
exploitation of our seniors. Let's be clear: Scammers will stop at 
nothing to take advantage of our seniors, and it is up to us in this 
House to stop them.
  Mr. Speaker, I encourage my congressional colleagues to join me in 
supporting this important piece of legislation, and I urge its passage.
  Mr. McHENRY. Mr. Speaker, I have no further speakers, and I yield 
back the balance of my time.
  Ms. PRESSLEY. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, H.R. 1565 will help our financial regulators better 
protect our Nation's seniors and the retirement funds they spent their 
entire lives building. I urge all of my colleagues to stand up for 
senior investors and vote ``yes'' on H.R. 1865.
  Mr. Speaker, I yield back the balance of my time.
  Ms. JACKSON LEE. Mr. Speaker, I rise in strong support of H.R. 1565, 
the ``Senior Security Act,'' which will help stop financial predators 
from scamming seniors out of their savings by creating a federal Senior 
Investor Taskforce within the Securities and Exchange Commission (SEC) 
to strengthen protections and safeguards for senior investors.
  This legislation will establish the Senior Investor Taskforce at the 
SEC, which will be charged with identifying problems senior investors 
encounter, including financial exploitation and cognitive decline, as 
well as identifying regulatory changes that could help senior 
investors.
  The established Senior Investor Taskforce will be required to:
  Identify challenges that senior investors encounter, including 
problems associated with financial exploitation and cognitive decline;
  Identify areas in which senior investors would benefit from changes 
at the Commission or the rules of self-regulatory organizations;
  Coordinate, as appropriate, with other offices within the Commission 
and other taskforces that may be established within the Commission, 
self-regulatory organizations, and the Elder Justice Coordinating 
Council;
  Consult, as appropriate, with state securities and law enforcement 
authorities, state insurance regulators, and other federal agencies; 
and
  Submit a biennial report to Congress.
  Every day, and far too often, vulnerable seniors in Texas and across 
the country fall victim to financial scammers.
  Seniors have worked their entire lives with the promise of a safe and 
secure retirement, but unfortunately criminals are taking advantage of 
uncertainty surrounding the pandemic and working overtime to target 
them.
  No senior should ever have to worry that picking up the phone could 
mean being scammed out of thousands of dollars, but unfortunately, for 
too many members of our communities, that is exactly what is happening.
  Retirement accounts are not the only damage these scams target--they 
damage the independence and trust of a vulnerable community.
  During the COVID-19 pandemic, we have seen instances of fraud rise in 
unprecedented numbers, as scammers attempt to take advantage of senior 
citizens and deprive them of their hard-earned savings.
  Bad actors preying on older Americans is, unfortunately, nothing new, 
but in the midst of a global pandemic impacting Americans' lives and 
livelihoods, cracking down on those scams must be a priority.
  One such scam was thwarted by Houston police and the Harris County 
District Attorney, who made an arrest in February in an international 
cyber-scam that bilked unsuspecting, mostly elderly victims out of more 
than $1 million.
  According to a report from the Senate Special Committee on Aging 
released last Congress, older Americans lose approximately $3 billion 
each year to financial scams and abuse.
  Although 1 in 20 seniors in the U.S. is a target of fraud schemes, 
the National Adult Protective Services Association has found that only 
1 in 44 seniors report-that they are victims of a fraud scheme.
  Fraudulent IRS impersonation and tech support calls are among the 
common and costly scams, and according to the Treasury Inspector 
General for Tax Administration, more than 2.5 million Americans have 
been targeted by scammers impersonating IRS officials.
  Since 2013, more than 15,800 taxpayers have lost at least $80 million 
from this type of scam alone.
  Furthermore, Microsoft estimates that more than 3 million Americans 
are victims of technical support scams, where scammers pretend to be 
with a reputable tech company and persuade seniors to provide personal 
and bank information.
  Although we do know a few statistics, the lack of good, recent data 
on senior financial exploitation is a problem that H.R. 1565 would 
significantly aid in resolving.
  For this reason, I urge all members to join me in voting to pass H.R. 
1565, the Fraud and Scam Reduction Act, which is critical to protecting 
seniors' hard-earned savings and stopping fraudulent schemes before it 
is too late.
  The SPEAKER pro tempore (Mr. Takano). The question is on the motion 
offered by the gentlewoman from Massachusetts (Ms. Pressley) that the 
House suspend the rules and pass the bill, H.R. 1565.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. BIGGS. Mr. Speaker, on that I demand the yeas and nays.
  The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution 
8, the yeas and nays are ordered.
  Pursuant to clause 8 of rule XX, further proceedings on this motion 
are postponed.

                          ____________________