“More has to be done to protect seniors” who fall victim to those who use dubious senior designations to promote themselves as financial planning experts, state insurance legislators were warned during the spring meeting of the National Conference of Insurance Legislators here.
As evidence of the extent of fraud involving questionable senior designations, Karen Tyler, a North Dakota securities commissioner and president of the North American Securities Administrators Association, Washington, backed her warning with the following facts:
–3,600 enforcement actions and $61 million in penalties.
–$900 million in restitution.
–over 900 years of jail time for misconduct.
Much of the problem stems from “free-lunch seminars” in which seniors are invited to a luncheon seminar billed as an educational session, Tyler said. But in all 110 examinations in a NASAA survey, “all were designed to sell,” she said.