The
SEC and NASD are teaming up to crack down on fraudulent and unsuitable
securities sales that target senior citizens.
The regulatory
bodies say in a joint statement that the initiative will include
targeted examinations to detect abusive sales tactics aimed at seniors,
aggressive enforcement of securities laws in cases of fraud against
seniors and investor education and outreach.
The initiative
builds upon a crackdown in Florida that was conducted by regulators in
that state in conjunction with the SEC and NASD.
"Another American
baby boomer will turn 60 every eight seconds for the next 20 years,"
says SEC Chairman Christopher Cox. "As the nation's assets increasingly
are held by older Americans, fraudsters can be expected to follow
Willie Sutton's example and go where the money is. That's why the SEC's
partnership with state regulators to safeguard the assets of older
Americans is so important."
In Florida,
Federal, state and NASD regulators have started on-site examinations of
firms sponsoring "free lunch" investment seminars to ensure that sales
practices are lawful, says Cox and NASD President Patricia D. Struck.
Similar oversight will be expanded to other states, they say.
SEC regional
offices also will work closely with state and local law enforcement and
federal and state regulatory agencies to exchange information to help
identify, shut down and take action against investment scams targeting
seniors, the officials say.
The SEC has a
package of brochures, called the "Senior Care Package," at www.sec.gov.
The NASD also has a senior citizen Investor Research Center at
www.nasaa.org.