H.R. 10112: Empowering States to Protect Seniors from Bad Actors Act

This bill would create a federal grant program to help states fight financial fraud aimed at older adults and certain insurance policyholders. It amends an existing Dodd-Frank provision so the Securities and Exchange Commission (SEC) would award competitive grants to state securities regulators and state insurance departments.

Who could receive the grants

Eligible recipients would be:

• State securities commissions or similar state agencies
• State insurance departments or similar state agencies

For this bill, a senior is defined as anyone age 62 or older.

What counts as “senior financial fraud”

The bill defines senior financial fraud broadly. It includes fraudulent, illegal, unauthorized, or improper acts involving a senior’s money, assets, benefits, or belongings, including misuse by a caregiver or fiduciary. It also covers conduct against seniors that falls under the federal wire fraud statute.

How the grant money could be used

State agencies receiving funds could use them to:

• Hire staff to identify, investigate, and pursue cases of senior financial fraud
• Buy technology, equipment, and training for regulators, prosecutors, and law enforcement
• Provide education and training materials to seniors about fraud
• Develop broader state plans to combat senior financial fraud
• Strengthen state laws to better protect seniors from fraud

The money could not be used for indirect or general overhead costs such as rent or utilities unless those costs are directly tied to the grant purpose.

Application, oversight, and reporting

States would have to apply to the SEC and describe:

• The scope of the fraud problem in the state
• How the proposed activities would help identify victims, support investigations and prosecutions, and reduce fraud
• How the work would coordinate with other state efforts

The SEC could set performance goals and reporting requirements. Grant recipients would have to provide detailed accounting of how funds were used. The SEC would also have to:

• Report to Congress within 2 years and again within 5 years after enactment
• List recipients, describe funded programs, and evaluate effectiveness
• Conduct annual audits to make sure funds are used as intended

Grant limits and funding

Each eligible state entity could receive up to $500,000 per year. If a state entity serves as both the securities regulator and the insurance department, the cap would be $1,000,000 per year.

The bill authorizes $10 million per year for fiscal years 2025 through 2030 to fund the program.

Relevant Companies

None found