Senate Special Committee on Aging Hearing on Senior Investor Protection
United States Senate Special Committee on Aging
“Broken Trust: Combating Financial Exploitation of Vulnerable Seniors”
Wednesday, February 4, 2015
Key Topics & Takeaways
- Senior Investor Protection Legislation: Multiple witnesses testified on the need to provide the financial services industry with a path to reach out to, and share records with, multiple government agencies (including Adult Protective Services and Securities Administrators) without facing legal ramifications. Additionally, witnesses requested financial institutions be able to temporarily hold suspect transactions.
- Multidisciplinary Teams: A major theme throughout the hearing was the need for the development of multidisciplinary teams with dedicated senior financial exploitation professionals at every level, including investigators, prosecutors, and victim advocates.
- Financial Advisors: During the question and answer session, and in contrast to her colleagues, Senator Elizabeth Warren (D-MA) focused entirely on protecting investors from financial advisors. In response, Judith Shaw advocated for the establishment of a uniform fiduciary standard, as well as more robust disclosure requirements. As part of subsequent discussion, she specifically referenced NASAA’s Working Group on Model Fee Disclosure.
- Potential Legislation: Sen. Richard Blumenthal (D-Conn.), stated that he intended to introduce a bill which would increase the federal penalties for senior exploitation, grow data collection surrounding the issue, and provide increased resources to the states.
Witnesses
- Philip Marshall, Grandson of Brooke Astor
- Judith Shaw, Securities Administrator, Maine and President-Elect, North American Securities Administrators Association (NASAA)
- Kathleen Quinn, Executive Director, National Adult Protective Services Association (NAPSA)
- Page Ulrey, Senior Deputy Prosecuting Attorney, Elder Abuse Team, King County, Washington
Opening Statements
Chairwoman Susan M. Collins (R-Maine) opened by welcoming the members of the committee and addressing the three main topics the Special Committee on Aging would focus on over the year: 1) retirement security; 2) biomedical research; and 3) financial schemes and other scams targeting older Americans.
Collins noted that “financial exploitation harms far too many seniors,” and expressed how troubling it is when a senior is defrauded by a “family member, caregiver, or trusted financial advisor” out of their hard-earned retirement funds. She noted that the Government Accountability Office (GAO) estimated that seniors lost roughly $2.9B to such exploitation in 2010, and that 90% of financial abuse victims were victimized by someone they knew.
Collins further highlighted some of the difficulties created by such victimization include: 1) reticence of victims to come forward out of embarrassment or shame, or out of love for the ones who victimized them; 2) how such victimization undermined both the health and financial security of exploited seniors; and 3) the need for coordinated efforts at the local, state, and federal levels to prevent and respond to cases of senior financial exploitation.
Finally, Collins argued that the Federal Government “plays an important leadership role [in combating] this problem,” and discussed the Elder Justice Coordinating Council (EJCC), led by the Department of Health and Human Services.
In her opening statement, Ranking Member Claire McCaskill (D-Mo.) highlighted that “roughly one in five seniors will be a target of some form of financial exploitation, to the tune of billions in losses each year.” She also emphasized that when the victim is a family member, such cases become complex, particularly when the perpetrator is legally appointed as a guardian and when the victim feels especially “powerless or ashamed” to report. She further emphasized that there is a need for competent and trained professionals at every level, “from the detectives and mental health professionals all the way up to the DA’s office,” in order to effectively prosecute those that exploit seniors.
McCaskill also emphasized that a 2012 GAO study had found that this issue was being addressed by seven federal agencies within their scope of their own mission, “but not necessarily in support of the overall goal.” She singled out the Consumer Financial Protection Bureau for its work in this area, and lamented the lack of national data on the scope of the problem. She also referenced a 2012 law from Missouri that “[strengthened] the definition of financial exploitation of seniors.”
Witness Testimony
In his testimony, Philip Marshall, Grandson of Brooke Astor (socialite victim of a well-publicized senior financial exploitation case), recounted the travails that his family had faced when his grandmother was “deprived, manipulated, and robbed-all as part of a calculated ‘scheme to defraud.” Marshall advocated for Adult Protective Services (APS) departments to receive federal funding, for the creation of multi-jurisdictional teams, and called for increased coordination and training. He also argued that, for financial transactions in particular, “enhanced detection, mandatory reporting, and greater reporting of suspicious activity will so help.”
Marshall also discussed the work of his organization, “Beyond Brooke,” called for Congress to reauthorize the Elder Justice Act and the Older Americans Act, and stated that, “to be complacent about elder justice is to be complicit in elder abuse.”
In her testimony, Judith Shaw, Securities Administrator in Maine and President-Elect of NASAA, discussed Maine’s Senior$afe program, a collaboration among Maine financial institutions, the Maine Department of Health and Human Services Office of Aging and Disability Services, the Maine Department of Professional and Financial Regulation, Maine’s Legal Services for the Elderly, and Maine’s five Area Agencies on Aging. Shaw noted that older adults own tangible assets attractive to scam artists, and that a new safety net is needed that breaks down “barriers and walls that have kept us from seeking single solutions from narrow perspectives.”
Shaw further stated that banks and credit unions have been one of their most valuable resources on the issue. In discussing the important components of Senior$afe, Shaw highlighted: 1) two-part, specialized trainings for front-line staff, managers, and compliance personnel; 2) a consumer brochure; 3) quick response cards for front-line staff and managers; 3) the establishment of a “feedback loop” to banks and credit unions to encourage reporting; and 4) the implementation of a “no wrong door” approach, where suspected exploitation can be reported to any participating government partner (including the Maine Office of Securities).
Finally, she noted that the program had been effective. 210 employees had received training to date, and the Office had received 20 referrals in less than a year from the program (17 of which were from financial institutions).
In her testimony, Kathleen Quinn, Executive Director of NAPSA, called the issue at hand a “huge, expensive, and deadly but invisible problem.” She emphasized: the size of the problem and the difficulties in identifying victims; that financial exploitation victims were three times more likely to pass away; and that roughly 5 million seniors were victimized annually – twice the number of child abuse and domestic violence victims combined.
Quinn further expressed her hope that federal funding on the issue will grow as attention on this issue increases, as it did for both child abuse and domestic violence – two areas that have since seen significant reductions in incidence rates due to federal funding. She also noted the “woefully inadequate” and “embarrassing” level of research on this issue and advocated for increasing such initiatives.
Additionally, Quinn spoke to the necessity of clarifying legislation to emphasize that financial institutions are not prohibited from sharing their client’s records in order to protect against or prevent actual or potential fraud. She highlighted that eight regulatory agencies issued guidance, in 2013, to financial institutions stating that the Graham-Leach-Bliley Act (GLB) does not prohibit such reporting, but argued that further steps were also necessary.
Quinn specifically requested that financial institutions be granted immunity for elder abuse reporting and record sharing, and also be granted the authority to “put a temporary freeze on client’s accounts when they have a reasonable belief that the person is being defrauded.”
In her testimony, Page Ulrey, Senior Deputy Prosecuting Attorney, Elder Abuse Team, King County, Washington, cited increased reliance on “Medicare, Medicaid and other health, housing and social programs,” due to the depletion of a victim’s assets in financial exploitation cases. She argued that while the real cost of this problem is unknown, the cost to the government is “astronomical.” Ulrey further stated that the issue at hand was a “problem with a solution.”
She identified three concrete steps that could be taken: 1) creation of a national infrastructure to help local, state, and federal prosecutors (including the placement of specialized officers, prosecutors and victim advocates), as well as the development of a national resource center for criminal justice professionals to rely on; 2) increased training, with an emphasis on financial services employees; and 3) funding for research, data collection, and pilot tests – such as cognitive impairment training.
Question and Answer
Collins asked Shaw if there were obstacles to financial institutions coming forward and reporting abuse. Shaw replied that she found that financial institutions were hesitant because of a lack of a feedback loop – they never knew what happened to a case after they made a report and there was no assurance that they did the right thing by reporting. She further explained that providing financial institutions immunity for reporting to APS, combined with further clarifying GLB to emphasize that financial institutions would be allowed to turn over financial records in such cases, would be very beneficial.
McCaskill discussed the barrier created when law enforcement does not believe senior financial exploitation is a “big enough” issue to address, and asked Ulrey how to “light a fire” under law enforcement and prosecutors. Ulrey laid out four possible measures: 1) establish a dedicated prosecutor for such crimes; 2) provide grants for training (including expansion of grants from the Office on Violence Against Women (OVW)); 3) train prosecutors on how to prove such cases, how to handle capacity issues, and how to approach financial issues; and 4) establish multidisciplinary teams tasked with addressing these issues specifically.
Sen. Elizabeth Warren (D-Mass.) stated that she wanted to take the questioning a different direction, and she focused on financial advisors who take advantage of their clients. She cited two studies (one Harvard study and a 2013 GAO study) that found that financial advisors consistently steered clients toward higher fee investment options, and that such fees can cost investors significant funds. She subsequently asked what could be done to make sure that investors invest in funds that benefit themselves more than they benefit the investment advisor. In response, Shaw advocated for the adoption of a uniform fiduciary standard, more robust disclosures (including fee disclosures and product component disclosures), and stronger enforcement of suitability standards.
Warren then cited further studies that found that low-fee mutual funds universally out performed high-fee mutual funds for investors, and referenced a study by AARP that demonstrated that more than three-quarters of people didn’t know that salespeople don’t have to provide advice in the investor’s best interest. She asked Shaw whether it was a concern that the current system gave bad actors (who act in their own best interest) an unfair advantage over good actors (who act in their client’s best interest). Shaw replied that it was a concern, and that it was part of the “strong investor and consumer protections” of the Maine securities agency. Shaw further highlighted NASAA’s work with the industry on model fee disclosures.
Sen. Thom Tillis (R-N.C.) asked Shaw about the challenges faced in implementing Senior$afe. Shaw responded that it was important to: 1) ensure that banks and credit unions were comfortable making reports; 2) that a “no wrong door” approach was effectively implemented; 3) that there were at least two points of entry in the system (APS and the Securities Administrator); and 4) that there was a strong partnership with community-based resources. Shaw further emphasized the importance of taking a multidisciplinary approach to addressing senior financial exploitation.
Tillis followed-up by asking Shaw whether there were any plans to expand Senior$afe. Shaw noted that the program was being turned over to NASAA in order for them to develop it into a training program, and that the concept was being modified for use by law enforcement, first responders, and in-home caregivers. Further, Shaw highlighted a few other expansions of the program, including development of guidance cards and other training materials.
Sen. Bob Casey (D-Pa.) also inquired about the implementation of Senior$afe, and asked Shaw if putting the multijurisdictional team together was difficult and whether she thought Maine could provide a model for other states. Shaw stated that she believed Maine could definitely be a model for other states, and that the Maine agencies all realized that the time had come to address the issue and it was not difficult to bring them together.
Sen. Kirsten Gillibrand (D-N.Y.) discussed the growing Alzheimer’s crisis and followed-up the discussion by asking Ulrey how dedicated units can help. Ulrey replied that dedicated positions at all levels help to build complex cases from the ground up and aid in effective prosecution.
Gillibrand then asked Ulrey what would be necessary to reconstruct the program from King County. Ulrey highlighted four factors: 1) expansion of OVW grants; 2) nationally sponsored trainings; 3) development of a national resource center; and 4) utilizing victim advocates.
Quinn also responded, stating that APS offices needed more direct funding for senior financial exploitation and more robust training. She also advocated for more research on this issue.
Sen. Tim Kaine (D-Va.) asked the panelists for a “report card” on federal efforts in this space. He spoke about the GAO report, stating that seven agencies were working on this issue within their mission, but not towards the overarching goal, and highlighted the work of the EJCC, stating that it has made major progress.
Shaw discussed a working group that was formed in Maine, which asked federal agencies to “come to the table,” where states could then serve as a theater to develop a critical mass and supply information to the federal agencies on cross-jurisdictional scams. Ulrey stated that the DOJ elder abuse website had great potential, but required more funding.
Kaine then asked how it would be possible to increase reporting, especially in situations where a financial advisor may be aware of possible exploitation, but may choose not to report. In response, Ulrey noted that in Washington State, APS would often dismiss cases and not refer them if they felt that they had no capacity to follow-up on them, and that such an issue should be addressed.
Additionally, the work of Ron Long and Wells Fargo in promoting training in Missouri was also highlighted as an essential in the financial services industry.
Sen. Richard Blumenthal (D-Conn.), after telling a story of a constituent, referenced a bill that he intended to introduce which would increase the federal penalties for senior exploitation, grow data collection in this area, and provide increased resources for states. He further emphasized the difficulties in ensuring senior financial exploitation cases were reported, and asked the panelists if they would support mandatory reporting for financial institutions.
Ulrey stated that she would be “delighted” to have mandatory reporting; that permissive reporting had helped tremendously; and that it would be a “very powerful message to make it a mandate.” She further noted that coupling training with mandatory reporting would be a “wonderful idea.” Quinn agreed and said that part of the reporting needed to include providing APS with financial records, and that mandatory reporting would be “not just giving [financial institutions] their cover, but making it their legal burden.”
In closing, Collins highlighted several statistics from Quinn’s written testimony (including that the 85+ demographic is the fastest growing demographic in America), and stated that Congress was working on reauthorizing the Elder Justice Act and the Older Americans Act.
For more information and a webcast of this event, please click here.
,Blog Tags:,Blog Categories:,Blog TrackBack:,Blog Pingback:No,Hearing Summaries Issues:Retirement/Pensions,Hearing Summaries Agency:Senate Special Committee on Aging,Publish Year:2015
United States Senate Special Committee on Aging
“Broken Trust: Combating Financial Exploitation of Vulnerable Seniors”
Wednesday, February 4, 2015
Key Topics & Takeaways
- Senior Investor Protection Legislation: Multiple witnesses testified on the need to provide the financial services industry with a path to reach out to, and share records with, multiple government agencies (including Adult Protective Services and Securities Administrators) without facing legal ramifications. Additionally, witnesses requested financial institutions be able to temporarily hold suspect transactions.
- Multidisciplinary Teams: A major theme throughout the hearing was the need for the development of multidisciplinary teams with dedicated senior financial exploitation professionals at every level, including investigators, prosecutors, and victim advocates.
- Financial Advisors: During the question and answer session, and in contrast to her colleagues, Senator Elizabeth Warren (D-MA) focused entirely on protecting investors from financial advisors. In response, Judith Shaw advocated for the establishment of a uniform fiduciary standard, as well as more robust disclosure requirements. As part of subsequent discussion, she specifically referenced NASAA’s Working Group on Model Fee Disclosure.
- Potential Legislation: Sen. Richard Blumenthal (D-Conn.), stated that he intended to introduce a bill which would increase the federal penalties for senior exploitation, grow data collection surrounding the issue, and provide increased resources to the states.
Witnesses
- Philip Marshall, Grandson of Brooke Astor
- Judith Shaw, Securities Administrator, Maine and President-Elect, North American Securities Administrators Association (NASAA)
- Kathleen Quinn, Executive Director, National Adult Protective Services Association (NAPSA)
- Page Ulrey, Senior Deputy Prosecuting Attorney, Elder Abuse Team, King County, Washington
Opening Statements
Chairwoman Susan M. Collins (R-Maine) opened by welcoming the members of the committee and addressing the three main topics the Special Committee on Aging would focus on over the year: 1) retirement security; 2) biomedical research; and 3) financial schemes and other scams targeting older Americans.
Collins noted that “financial exploitation harms far too many seniors,” and expressed how troubling it is when a senior is defrauded by a “family member, caregiver, or trusted financial advisor” out of their hard-earned retirement funds. She noted that the Government Accountability Office (GAO) estimated that seniors lost roughly $2.9B to such exploitation in 2010, and that 90% of financial abuse victims were victimized by someone they knew.
Collins further highlighted some of the difficulties created by such victimization include: 1) reticence of victims to come forward out of embarrassment or shame, or out of love for the ones who victimized them; 2) how such victimization undermined both the health and financial security of exploited seniors; and 3) the need for coordinated efforts at the local, state, and federal levels to prevent and respond to cases of senior financial exploitation.
Finally, Collins argued that the Federal Government “plays an important leadership role [in combating] this problem,” and discussed the Elder Justice Coordinating Council (EJCC), led by the Department of Health and Human Services.
In her opening statement, Ranking Member Claire McCaskill (D-Mo.) highlighted that “roughly one in five seniors will be a target of some form of financial exploitation, to the tune of billions in losses each year.” She also emphasized that when the victim is a family member, such cases become complex, particularly when the perpetrator is legally appointed as a guardian and when the victim feels especially “powerless or ashamed” to report. She further emphasized that there is a need for competent and trained professionals at every level, “from the detectives and mental health professionals all the way up to the DA’s office,” in order to effectively prosecute those that exploit seniors.
McCaskill also emphasized that a 2012 GAO study had found that this issue was being addressed by seven federal agencies within their scope of their own mission, “but not necessarily in support of the overall goal.” She singled out the Consumer Financial Protection Bureau for its work in this area, and lamented the lack of national data on the scope of the problem. She also referenced a 2012 law from Missouri that “[strengthened] the definition of financial exploitation of seniors.”
Witness Testimony
In his testimony, Philip Marshall, Grandson of Brooke Astor (socialite victim of a well-publicized senior financial exploitation case), recounted the travails that his family had faced when his grandmother was “deprived, manipulated, and robbed-all as part of a calculated ‘scheme to defraud.” Marshall advocated for Adult Protective Services (APS) departments to receive federal funding, for the creation of multi-jurisdictional teams, and called for increased coordination and training. He also argued that, for financial transactions in particular, “enhanced detection, mandatory reporting, and greater reporting of suspicious activity will so help.”
Marshall also discussed the work of his organization, “Beyond Brooke,” called for Congress to reauthorize the Elder Justice Act and the Older Americans Act, and stated that, “to be complacent about elder justice is to be complicit in elder abuse.”
In her testimony, Judith Shaw, Securities Administrator in Maine and President-Elect of NASAA, discussed Maine’s Senior$afe program, a collaboration among Maine financial institutions, the Maine Department of Health and Human Services Office of Aging and Disability Services, the Maine Department of Professional and Financial Regulation, Maine’s Legal Services for the Elderly, and Maine’s five Area Agencies on Aging. Shaw noted that older adults own tangible assets attractive to scam artists, and that a new safety net is needed that breaks down “barriers and walls that have kept us from seeking single solutions from narrow perspectives.”
Shaw further stated that banks and credit unions have been one of their most valuable resources on the issue. In discussing the important components of Senior$afe, Shaw highlighted: 1) two-part, specialized trainings for front-line staff, managers, and compliance personnel; 2) a consumer brochure; 3) quick response cards for front-line staff and managers; 3) the establishment of a “feedback loop” to banks and credit unions to encourage reporting; and 4) the implementation of a “no wrong door” approach, where suspected exploitation can be reported to any participating government partner (including the Maine Office of Securities).
Finally, she noted that the program had been effective. 210 employees had received training to date, and the Office had received 20 referrals in less than a year from the program (17 of which were from financial institutions).
In her testimony, Kathleen Quinn, Executive Director of NAPSA, called the issue at hand a “huge, expensive, and deadly but invisible problem.” She emphasized: the size of the problem and the difficulties in identifying victims; that financial exploitation victims were three times more likely to pass away; and that roughly 5 million seniors were victimized annually – twice the number of child abuse and domestic violence victims combined.
Quinn further expressed her hope that federal funding on the issue will grow as attention on this issue increases, as it did for both child abuse and domestic violence – two areas that have since seen significant reductions in incidence rates due to federal funding. She also noted the “woefully inadequate” and “embarrassing” level of research on this issue and advocated for increasing such initiatives.
Additionally, Quinn spoke to the necessity of clarifying legislation to emphasize that financial institutions are not prohibited from sharing their client’s records in order to protect against or prevent actual or potential fraud. She highlighted that eight regulatory agencies issued guidance, in 2013, to financial institutions stating that the Graham-Leach-Bliley Act (GLB) does not prohibit such reporting, but argued that further steps were also necessary.
Quinn specifically requested that financial institutions be granted immunity for elder abuse reporting and record sharing, and also be granted the authority to “put a temporary freeze on client’s accounts when they have a reasonable belief that the person is being defrauded.”
In her testimony, Page Ulrey, Senior Deputy Prosecuting Attorney, Elder Abuse Team, King County, Washington, cited increased reliance on “Medicare, Medicaid and other health, housing and social programs,” due to the depletion of a victim’s assets in financial exploitation cases. She argued that while the real cost of this problem is unknown, the cost to the government is “astronomical.” Ulrey further stated that the issue at hand was a “problem with a solution.”
She identified three concrete steps that could be taken: 1) creation of a national infrastructure to help local, state, and federal prosecutors (including the placement of specialized officers, prosecutors and victim advocates), as well as the development of a national resource center for criminal justice professionals to rely on; 2) increased training, with an emphasis on financial services employees; and 3) funding for research, data collection, and pilot tests – such as cognitive impairment training.
Question and Answer
Collins asked Shaw if there were obstacles to financial institutions coming forward and reporting abuse. Shaw replied that she found that financial institutions were hesitant because of a lack of a feedback loop – they never knew what happened to a case after they made a report and there was no assurance that they did the right thing by reporting. She further explained that providing financial institutions immunity for reporting to APS, combined with further clarifying GLB to emphasize that financial institutions would be allowed to turn over financial records in such cases, would be very beneficial.
McCaskill discussed the barrier created when law enforcement does not believe senior financial exploitation is a “big enough” issue to address, and asked Ulrey how to “light a fire” under law enforcement and prosecutors. Ulrey laid out four possible measures: 1) establish a dedicated prosecutor for such crimes; 2) provide grants for training (including expansion of grants from the Office on Violence Against Women (OVW)); 3) train prosecutors on how to prove such cases, how to handle capacity issues, and how to approach financial issues; and 4) establish multidisciplinary teams tasked with addressing these issues specifically.
Sen. Elizabeth Warren (D-Mass.) stated that she wanted to take the questioning a different direction, and she focused on financial advisors who take advantage of their clients. She cited two studies (one Harvard study and a 2013 GAO study) that found that financial advisors consistently steered clients toward higher fee investment options, and that such fees can cost investors significant funds. She subsequently asked what could be done to make sure that investors invest in funds that benefit themselves more than they benefit the investment advisor. In response, Shaw advocated for the adoption of a uniform fiduciary standard, more robust disclosures (including fee disclosures and product component disclosures), and stronger enforcement of suitability standards.
Warren then cited further studies that found that low-fee mutual funds universally out performed high-fee mutual funds for investors, and referenced a study by AARP that demonstrated that more than three-quarters of people didn’t know that salespeople don’t have to provide advice in the investor’s best interest. She asked Shaw whether it was a concern that the current system gave bad actors (who act in their own best interest) an unfair advantage over good actors (who act in their client’s best interest). Shaw replied that it was a concern, and that it was part of the “strong investor and consumer protections” of the Maine securities agency. Shaw further highlighted NASAA’s work with the industry on model fee disclosures.
Sen. Thom Tillis (R-N.C.) asked Shaw about the challenges faced in implementing Senior$afe. Shaw responded that it was important to: 1) ensure that banks and credit unions were comfortable making reports; 2) that a “no wrong door” approach was effectively implemented; 3) that there were at least two points of entry in the system (APS and the Securities Administrator); and 4) that there was a strong partnership with community-based resources. Shaw further emphasized the importance of taking a multidisciplinary approach to addressing senior financial exploitation.
Tillis followed-up by asking Shaw whether there were any plans to expand Senior$afe. Shaw noted that the program was being turned over to NASAA in order for them to develop it into a training program, and that the concept was being modified for use by law enforcement, first responders, and in-home caregivers. Further, Shaw highlighted a few other expansions of the program, including development of guidance cards and other training materials.
Sen. Bob Casey (D-Pa.) also inquired about the implementation of Senior$afe, and asked Shaw if putting the multijurisdictional team together was difficult and whether she thought Maine could provide a model for other states. Shaw stated that she believed Maine could definitely be a model for other states, and that the Maine agencies all realized that the time had come to address the issue and it was not difficult to bring them together.
Sen. Kirsten Gillibrand (D-N.Y.) discussed the growing Alzheimer’s crisis and followed-up the discussion by asking Ulrey how dedicated units can help. Ulrey replied that dedicated positions at all levels help to build complex cases from the ground up and aid in effective prosecution.
Gillibrand then asked Ulrey what would be necessary to reconstruct the program from King County. Ulrey highlighted four factors: 1) expansion of OVW grants; 2) nationally sponsored trainings; 3) development of a national resource center; and 4) utilizing victim advocates.
Quinn also responded, stating that APS offices needed more direct funding for senior financial exploitation and more robust training. She also advocated for more research on this issue.
Sen. Tim Kaine (D-Va.) asked the panelists for a “report card” on federal efforts in this space. He spoke about the GAO report, stating that seven agencies were working on this issue within their mission, but not towards the overarching goal, and highlighted the work of the EJCC, stating that it has made major progress.
Shaw discussed a working group that was formed in Maine, which asked federal agencies to “come to the table,” where states could then serve as a theater to develop a critical mass and supply information to the federal agencies on cross-jurisdictional scams. Ulrey stated that the DOJ elder abuse website had great potential, but required more funding.
Kaine then asked how it would be possible to increase reporting, especially in situations where a financial advisor may be aware of possible exploitation, but may choose not to report. In response, Ulrey noted that in Washington State, APS would often dismiss cases and not refer them if they felt that they had no capacity to follow-up on them, and that such an issue should be addressed.
Additionally, the work of Ron Long and Wells Fargo in promoting training in Missouri was also highlighted as an essential in the financial services industry.
Sen. Richard Blumenthal (D-Conn.), after telling a story of a constituent, referenced a bill that he intended to introduce which would increase the federal penalties for senior exploitation, grow data collection in this area, and provide increased resources for states. He further emphasized the difficulties in ensuring senior financial exploitation cases were reported, and asked the panelists if they would support mandatory reporting for financial institutions.
Ulrey stated that she would be “delighted” to have mandatory reporting; that permissive reporting had helped tremendously; and that it would be a “very powerful message to make it a mandate.” She further noted that coupling training with mandatory reporting would be a “wonderful idea.” Quinn agreed and said that part of the reporting needed to include providing APS with financial records, and that mandatory reporting would be “not just giving [financial institutions] their cover, but making it their legal burden.”
In closing, Collins highlighted several statistics from Quinn’s written testimony (including that the 85+ demographic is the fastest growing demographic in America), and stated that Congress was working on reauthorizing the Elder Justice Act and the Older Americans Act.
For more information and a webcast of this event, please click here.