ADVISORY
FROM THE COMMITTEE ON WAYS AND MEANS

Subcommittee on Social Security

Shaw Announces Hearing on Misleading Mailings Targeted to Seniors

Congressman E. Clay Shaw, Jr., (R-FL), Chairman, Subcommittee on Social Security of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on misleading mailings targeted to seniors. The hearing will take place on Thursday, July 26, 2001, in the main Committee hearing room, 1100 Longworth House Office Building, beginning at 10:00 a.m.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.

BACKGROUND:

Social Security affects the lives of almost every American. Nine out of ten seniors receive Social Security benefits. Seniors pay close attention to any information they receive concerning Social Security, as notices often refer to changes in benefits that make up a least half of the income for a majority of seniors.

Despite the fact that the law prohibits certain misleading communications, the Social Security Administration's (SSA's) Office of Inspector General (IG) continues to receive complaints and conduct investigations of misleading SSA-related solicitations. Recently, SSA's IG settled a case with the Lead Agency, Inc., who sent approximately 2.6 million death benefit insurance "lead card" mailings to seniors that appeared to be from or related to SSA. Information from these cards was then used to sell insurance policies.

More recently, the IG completed investigations regarding two types of misleading mailings targeted primarily to seniors. One mailing made claims about a fictional "Slave Reparations Act" and the other raised the prospect of $5,000 payments to "notch babies." Both mailings indicated that the payments would be coming from SSA, but that to receive the funds, the individual must supply their personal information, including their Social Security number to a National Victim's Register. All replies were directed to the TREA Senior Citizens League (TSCL), an independent affiliate of The Retired Enlisted Association (TREA). TSCL is a tax-exempt organization that advocates legislative reforms for seniors. According to the IG, these flyers generated more than 29,000 individual responses, many of which included copies of personal documents such as Social Security cards, drivers licenses, birth certificates, and detailed family genealogies.

TSCL denied any involvement with the flyer and the IG was unable to identify its origin. However, the IG investigation revealed that TSCL directed its data processing firm to create a database containing the respondent's personal information. This information was then used to send a letter to respondents disavowing any responsibility for the flyers, which included TSCL's standard fundraising brochure.

In announcing the hearing, Chairman Shaw stated: "Misleading mailing scams targeted at seniors are unconscionable crimes. Many of our seniors are particularly vulnerable, due to their limited income or isolated living environment. Deceptive mailings that appear to have the approval or endorsement of SSA are illegal and will not be tolerated. The more seniors know about these scams, the more they and their families can protect themselves from becoming victims of these heartless perpetrators."

FOCUS OF THE HEARING:

The Subcommittee will hear testimony related to several misleading mailings targeting seniors. Testimony will include the experiences of victims and related investigation findings of the SSA/IG and other law enforcement officials.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, with their name, address, and hearing date noted on a label, by the close of business, Thursday, August 9, 2001, to Allison Giles, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Social Security office, room B-316 Rayburn House Office Building, by close of business the day before the hearing.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.

4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.

The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press, and the public during the course of a public hearing may be submitted in other forms.

Note: All Committee advisories and news releases are available on the World Wide Web at "http://waysandmeans.house.gov".

The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.