A bill aimed at protecting senior citizens from financial fraud and exploitation has been passed by the House of Representatives, according to ThinkAdvisor.
The measure, known as the Empowering States to Protect Seniors from Bad Actors Act, was approved last week by a vote of 370-48.
Under the legislation, $10 million would be authorized each year for a Senior Investor Protection Grant Program. The funding would go to state securities regulators for investigation and prosecution of senior financial fraud cases, enhancing technology and training for regulators, prosecutors, and law enforcement officers, and providing educational materials for seniors to help increase their awareness of financial scams.
The grant program would be implemented by the Securities and Exchange Commission, which would assume responsibility previously held by the Consumer Financial Protection Bureau. An SEC task force would be established to review applications for the grants.
The president of the North American Securities Administrators Association, an organization representing state regulators, sent a letter to House Speaker Nancy Pelosi urging passage of the bill as a way of enhancing existing efforts to protect senior investors.
A Senate companion bill was introduced by a bipartisan group that includes Sens. Chris Van Hollen, D-Md.; Tim Scott, R-S.C.; Raphael Warnock, D-Ga.; and Cynthia Lummis, R-Wyo.
A report by the Senate Special Committee on Aging found that each year, older Americans lose $2.9 billion a year to a variety of financial exploitation schemes and scams.
There are many forms of securities fraud that result in losses for investors. The attorneys at Lewitas Hyman have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Lewitas Hyman at (312) 291-4600 or through our online contact form for a no-cost evaluation of your matter.