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Frauds Against the Elderly: Boston, Mass

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Frauds Against the Elderly: Boston, Mass If you have issues viewing or accessing this file contact us at NCJRS.gov. = [COMMITTEE PRINT] FRAUDS AGAINST THE ELDERLY: BOSTON, MASS. A "BRIEFING BY THE SELECT COIY-t:!tIITTEE ON AGING HOUSE OF REPRESENTATIVES NINETY-SEVENTH CONGRESS FIRST SESSION MAY 20, 1981, BOSTON, MASS. Comm. Pub. No. 97-309 Printed for the use of the Committee on Aging U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1981 .), -.---------~--~------~-----------------~~------------.--------------------------------------------------------- , r ;) ("SJ .df' <:....;.? 0)" , ' 't j" \ ~i 1 i;>' i ~-. ',-'" -it \J CONTE'NTS 'iL TI TI MORNING SESSION-BoSTON, MASS. SELECT COMMITTEE ON AGING MEMBERS OPENING STATEMENTS CLAUDE PEPPER, Florida, Chairman Page EDWARD R. ROYBAL, California MAITHEW J. RINALDO, New Jersev. Chairman Barney Frank................. ......................... ...................................................... 1 MARIO BlAGGI, New York Ranking Minority Member . Cochal.rwoman Lois Pines .............................................................................................. 2 IKE ANDREWS, North Carolina WILLIAM C. WAMPLER, Virginia JOHN L. BURTON, California JOHN PAUL HAMMERSCHMIDT, Arkansas CHRONOLOGICAL LIST OF WITNESSES DON BONKER, Washington MARC L. MARKS, Pennsylvania THOMAS J. DOWNEY, New York RALPH REGULA, Ohio William T. Murphy, Assistant Chief Postal Inspector, Criminal Investigations, JAMES J. FLORIO, New Jersey ROBERT K. DORNAN, California Washington, D.C........................................................................................................... 6 HAROLD E. FORD, Tennessee HAROLD C. HOLLENBECK, New Jersey Paul E. Troy, Assistant U.S. attorney, District of Massachusetts, Boston, Mass.. 16 WILLIAM J. HUGHES, New Jersey NORMAN D. SHUMWAY, California Miss McKeon, Massachusetts ........................................................................................ 24 MARILYN LLOYD BOUQUARD, Tennessee OLYMPIA J. SNOWE, Maine John T. Montgomery, assistant attorney general, and chief of the consumer JIM SANTINI, Nevada DAN LUNGREN, California protection division, Commonwealth of Massachusetts.......................................... 31 DAVID W. EVANS, Indiana MILLICENT FENWICK, New Jersey Thomas D. Mahoney, Ph. D., secretary, Massachusetts Department of Elder STANLEY N. LUNDlNE, New York JAMES M. JEFFORDS, Vermont Affairs, prepared statement ....................................................................................... 43 MARY ROSE OAKAR, Ohio THOMAS J. TAUKE, Iowa Donald L. Becker, Esq., former staff counsel, Massachusetts Division of Insur- THOMAS A. LUKEN, Ohio THOMAS E. PETRI, Wisconsin ance, Commonwealth of Massachusetts................................................................... 44 GERALDINE A. FERRARO, New York JUDD GREGG, New Hampshire BEVERLY B. BYRON, Maryland DAN COATS, Indiana AFTERNOON SESSION-SPRINGFIELD, MASS. WILLIAM R. RATCHFORD, Connecticut GEORGE C. WORTLEY, New York DAN MICA, Florida HAL DAUB, Nebraska OPENING STATEMENTS HENRY A. WAXMAN, California LARRY E. CRAIG, Idaho MIKE SYNAR, Oklahoma PAT ROBERTS, Kansas Robert Markel.................................................................................................................. 47 EUGENE V. ATKINSON, Pennsylvahia BILL HENDON, North Carolina Cochairwoman Lois Pines .............................................................................................. 47 BUTLER DERRICK, South Carolina GREGORY W. CARMAN, New York BRUCE F. VENTO, Minnesota CHRONOLOGICAL LIST OF WITNESSES BARNEY FRANK, Massachusetts TOM LANTOS, California Peter Benjamin, elderly unit attorney, Western Massachusetts Legal Services. 50 BOB SHAMANSKY, Ohio Paul Edwards, national vice chairman, Citizens Commission on Pension RON WYDEN, Oregon Policy; and publicity chairman, Springfield Gray Panthers................................ 53 DONALD JOSEPH ALBOSTA, Michigan Ed Johnston, founder, Springfield Gray Panthers .................................................... 54 GEO. W. CROCKEIT, JR., Michigan George F. Markham, secretary, Northampton Elderly Americans........................ 55 WILLIAM HILL BONER, Tennessee Francis LaPointe, director of human resources, Western Massachusetts De- CHARLES H. Enw ARDS III, Chief of Staff partment of Social Services........................................................................................ 64 YOSEF J. RIEMER, Deputy Chief of Staff Robert Gallant, director, Highland Valley Elder Services ...................................... 67 Joseph Roche, chairman, Springfield City Health Council; and chief health VAL J. HALAMANDARIS, Senior Counsel JAMES A. BRENNAN, Assistant to the Chairman planner, Western Massachusetts Health Planning Council .... -............................ 69 WALTER A. GUNTHARP, Ph. D., Minority Staff Director Marge Vallone, director, Springfield City Council on Aging................................... 71 APPENDIX U.S. DGpartmen1 01 Justice Appendix 1. Examples of elderly consumer problems, submitted for the record [Ilationallnstitu'le 01 Justice by John T. Montgomery, assistant attorney general, Commonwealth of This document has been reproduced exac!ly as received from the Massachusetts ............................................................................................................... 75 person or organization originating it. Points of view or opinions stated Appendix 2. Commonwealth of Massachusetts Legislative Research Council in this document me those of the authors and do not necessarily repor~ relative to criminal and fraudulent victimization of the elderly, represent the offiCial position or policies of the National Institute of submItted for the record by Thomas R. Asci, legislative research bureau, Justice. Boston, Mass ................................................................................................................. 129 Appendix 3. Pricilla L. Chalmers, executive director, Holyoke Chicopee Re- Permission to reproduce this C~I i~1 ,led material has been gional Senior Services Corp., Holyoke, Mass., prepared statement ................... 178 granted by Public Domain (III) u. s. House~_ of _Representa t i yes ~ __ to the National Criminal Justice Reference Service (NCJRS). Further reproduction outside of the NCJRS system requires permis­ sion of the e8,,)'ri~Mt owner. FRAUDS AGAINST THE ELDERLY: BOSTON, MASS. WEDNESDAY, MAY 20, 1981 U.S. HOUSE OF REPRESENTATIVES, SELECT COMMITTEE ON AGING AND THE FEDERAL TRADE COMMISSION, Boston and Springfield, Mass. The participants met, pursuant to notice,· at 9 a.m., in Gardner Auditorium, Commonwealth of Massachusetts Statehouse, Boston, Mass., Hon. Barney Frank (acting chairman of the committee) and Hon. Lois Pines, regional director, New England Office, Federal Trade Commission (acting cochairwoman) presiding. Member present: Representative Barney Frank of Massachusetts. Also present: Lois Pines, regional director, New England office, Federal Trade Commission. Staff present: Val Halamandaris, senior counsel, Select C01Tl~nit­ tee on Aging; Robert S. Weiner, former staff director, Select Com­ mittee on Aging .. OPENING STATEMENT OF REPRESENTATIVE BARNEY FRANK Mr. FRANK. I am pleased to welcome you here this morning to this hearing of the Select Committee on Aging which is being held in conjuction with the Regional Office of the Federal Trade Com­ mission. The subject of today's hearing is frauds against tho elderly. I would like to introduce Lois Pines, the regional director of the FTC who has been the moving force behind these hearings. In her tenure she has done excellent work to protect the interests of the elderly and consumers in general from all manner of abuse. We are pleased to have you join us in these hearings. The House Select Committee on Aging has conducted several hearings on this sub­ Ject. The Committee learned that every year senior citizens are victimized for about $1 billion in phony arthritis cures largely sold through the mails, while we are spending only something $40 million a year in legitimate arthritis research. Driven by pain and despair many older Americans at the same time fall victim to con men who sell grape cures, goat's milk, olive oil, or snake oil juice as alleged cures for cancer. Senior citizens likewise spend millions on tonics to grow hair or restore a youthful appearance. At recent hearings, the Committee learned about a number of devices which are being sold to the elderly. The "Acudot" for example, was taken off the market by the Food and Drug Adminis­ tration. It is a small round band-aid with a tiny magnet in the center. The idea is that you put the magnet on the area and the (1) .... 2 3 magnet draws the pain from the body. The Committee also learned take place when patients run out of money, of double billing by about several varieties of health slippers. One was filled with what nursing homes, pension fraud, of over pricing of medical appliances ~uch as eyeglasses, hearing aids, and dentures desperately needed was described as uranium ore which allegedl~ let of healing radon gas. In fact the slippers were filled with gravel. A.nother variety by nine-tenths of all older people, but we believe that this is a comes with a long electric cord so that they can be plugged into the hearing that desperately needs to be held. wall socket. Another device was nothing more than a metal box The Federal Trade Commission and the House Select Committee with a light bulb in it with some colored filters attached. One color on Aging are committed to taking necessary action to correct these of filter
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