Fighting Senior Investment Fraud: Panel Calls for SEC, Labor Department, and Treasury Department to Work Together

Participants at an AARP/National Consumer League panel called on federal regulators from the US Labor Department, Treasury Department, and the Securities and Exchange Commission to work together when combating elder financial fraud.

North Carolina deputy securities administrator David Massey said not only must federal regulators from the different departments identify common interests and ways to work together, but also they must examine all regulatory gaps. He cited the fact that the 1996 National Securities Markets Improvement Act limits state regulatory authority over certain private offerings (Rule 506 offerings under Regulation D of the 1933 Securities Act).

Meantime, senior policy advisor Jeff Cruz encouraged the different federal arms to work together to combat fraud related to 401K retirement plans. He says that the recent change from benefit pension plans that were professionally managed to defined contribution plans is making retirees and seniors more vulnerable to financial fraud. He also recommended that the Department of Labor audit 401K plans.

Cruz and a number of senators have introduced two bills to protect older investors from fraud: S. 1661 and S. 906 have been called the 2009 Senior Investment Protection Act. The bills would require US states to adopt National Association of Insurance Commissioners and NASAA rules on senior certifications and professional designations use.

NASAA’s model rule has been adopted by 18 states. The NAIC rule has been adopted by 17 states.

Senior Financial Fraud
Protecting elderly investors from becoming the victim of financial fraud is extremely important. Our stockbroker fraud lawyers are committed to helping our senior investor clients recoup their losses.

Related Web Resources:

National Consumers League

State Securities Regulators Voice Strong Support For S. 906, the “Senior Investment Protection Act of 2009″ target=”_blank”>/a>, NASAA, May 4, 2009