Fraudulent telemarketers would face harsh penalties under as part of a sweeping new bill to protect seniors proposed by Sen. Patrick Leahy (D-VT).
The Seniors Safety Act of 2002 (S.2240) would allow the U.S. Attorney General to block or kill phone service to facilities that conduct fraudulent promotions.
It would also establish a clearinghouse at the Federal Trade Commission of information on fraud convictions and complaints against telemarketers.
And the bill would also direct the U.S. Sentencing Commission to review existing sentences for health care fraud, with an eye toward toughening them.
Several measures address broader problems such as defrauding of pension plans. They also set new penalties for bribery and corruption in connection with employee benefit plans, and authorize law-enforcement agencies to prosecute operators of nursing homes for health and safety violations.
The bill also enables the attorney general to obtain injunctive relief against illegal kickback schemes involving federal healthcare programs. And it toughens penalties for fraud resulting in serious injury or death. The latter could result in a life sentence.
The telemarketing fraud clearinghouse would consist of a "Better Business Bureau-style hotline" and fraud conviction database. The FTC would be called on to establish procedures for logging in victims' complaints, providing information fraud schemes, and referring complaints to law enforcement agencies.
Authority to block fraud artists' calls would be similar to that used to terminate the phone service of illegal gambling operations. Telephone companies would have to cut off service upon being notified by the Department of Justice.
"Scam artists are taking cold, calculating aim at older Americans," Leahy said in a statement. "They are out to violate their victims' trust and snag as much of their limited incomes as they can."
The bill is cosponsored by Sens. Tom Daschle (D-SD), Edward Kennedy (D-MA), Robert Torricelli (D-NJ), Tom Harkin (D-IA), Jeff Bingaman (D-NM), Russell Feingold (D-WI) and Tim Johnson (D-SD).
