GOVERNOR LINGLE SIGNS BILLS TO PROTECT HAWAI‘I SENIORS FROM FINANCIAL ABUSE AND FRAUD

For Immediate Release:  May 24, 2007

HONOLULU – Governor Linda Lingle today signed two bills into law that will help protect Hawai‘i’s senior citizens from financial abuse and fraud.  The two bills, along with one signed earlier this month, are part of the Administration’s continuing effort to protect residents against scam artists, especially those who target kupuna with fraudulent investment schemes.

“Defrauding our seniors is particularly deplorable since they are more vulnerable than others, as many are retired and living off their life savings,” said Governor Lingle.  “Many seniors may not have a close and active support system to assist and protect them from money scams.  These measures provide additional safeguards and deterrents to help keep our kupuna from becoming victims of unscrupulous individuals.”

SB1400 SD2 HD3 CD1 (Act 94) – Relating to Financial Abuse
Under this new law, which takes effect immediately, financial institutions in Hawai‘i will be required to report any suspected financial abuse committed against a senior citizen aged 62 or older to the Department of Human Services (DHS) or a local law enforcement agency.

Employees of financial institutions are in a unique position to observe activity relating to potential financial abuse involving elders.  The new law imposes a mandatory duty on any financial institution to report any such suspected incident of financial abuse immediately by telephone to DHS, followed by a written report within five business days. 

Once DHS receives such notification, it must determine whether it has jurisdiction over the elder involved, such as a “dependent adult” who is dependent on another person, care organization or care facility because of mental or physical impairment.  If DHS determines it lacks jurisdiction, it must notify the financial institution, which is then required to notify the proper law enforcement agency by telephone followed by a written report within three business days.

HB1306 HD2 SD1 (Act 95) – Enhanced Penalties for Securities Violations Against Elders
This measure allows an extra $50,000 fine per violation to be added to any existing civil or administrative fine levied for securities violations against a person 62 years or older.  Specifically, it allows the Commissioner of Securities to impose additional administrative penalties of up to $50,000 per violation, and allows a court to impose additional civil penalties of up to $50,000 per violation committed against seniors.  The new law takes effect on July 1, 2007.

Earlier this month, the Governor signed HB1336 SD1 (Act 50), which imposes fines of up to $10,000 for each violation by mortgage brokers and solicitors committed against seniors.  The bill deters unscrupulous brokers who convince elderly homeowners to sign mortgages that cause them to forfeit the equity in their property or lose their home.  Act 50 also takes effect on July 1, 2007.

The three bills to protect Hawai‘i seniors from financial abuse and fraud were introduced as part of the Lingle-Aiona Administration’s legislative package.

Today’s bill signing ceremony was held in conjunction with the Older Americans Recognition Luncheon at Washington Place to highlight the fact that senior citizens in Hawai‘i and across the nation are increasingly becoming targets of investment scams.

Read a copy of the Older Americans Month proclamation.

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For further information contact:
Lenny Klompus 
Senior Advisor-Communications
Phone:  (808) 586-7708

Russell Pang
Chief of Media Relations
Phone:  (808) 586-0043