Sink Works To Keep Seniors Safe

By CATHERINE DOLINSKI

Published: October 5, 2008

TALLAHASSEE - When Alice Bouchard became a widow in 1998, she also became a target.

Financial investing had always been her husband's responsibility. After his death, a local insurance agent persuaded Bouchard to buy a deferred annuity. Such annuities, which invest a person's money now to pay dividends later, are a common means of generating income during retirement.

But Bouchard, of New Port Richey, was already 85 and had no idea the annuity being peddled would tie up part of her savings for about 15 years. Withdrawing early, because of illness or any other reason, would cost her 25 percent.

The agent kept working on the widow, talking her into surrendering annuities she owned to buy new ones. Each time, the agent earned a commission and Bouchard lost money on fees - more than $20,000.

"It's incomprehensible to me how these people think," said Sister Carole Bouchard of the Society of Sisters for the Church, Alice Bouchard's 72-year-old daughter who detected signs of trouble with her mother's finances and contacted state authorities.

This week, state Chief Financial Officer Alex Sink is launching a Safeguard Our Seniors task force to find ways to protect seniors.

Senior fraud appears to be thriving in Florida. In the past year, Sink's office has opened 474 investigations into financial fraud against the elderly. Sink said the new task force will meet several times during the coming months and recommend anti-fraud laws in time for the spring legislative session.

Last spring, lawmakers removed key provisions of a consumer protection bill that would have made investment "twisting" or "churning" a felony. Twisting involves making false representations about investments to influence consumers; churning refers to shifting money between annuities to generate commissions. The felony provisions made it through the Senate but failed in the House.

Classifying such practices as felonies is a high priority for Sink, who said misdemeanor fines are too small to act as deterrents.

"Also, I think the companies that sell these products need to be paying more close attention to what their agents are doing out there," she said

CHECK IT OUT

Alex Sink meets with several seniors who were victims of fraud at 10:30 a.m. at the Hillsborough County Courthouse. The Safeguard Our Seniors group meets for the first time at 1 p.m. at the courthouse to hear from seniors and experts about unscrupulous agents and companies.

Reporter Catherine Dolinski can be reached at (850) 222-8382.