Illinois seems to be in a panic over preneed funeral money. Thank the antics of the Illinois Funeral Directors Association and their $59 million “Madoff fund”. This is a classic case of attacking the messenger. There is “confused and frightened public.” said IFDA insider Chris Butler of Butler Funeral Homes and Cremation Tribute Center in Springfield,IL. The IFDA Preneed scam is what confused and frightened the public not a State Register Editorial and a series of articles as he claims.-your funeral guy.
Funeral Funding Fear in Illinois over "Madoff" like fund
News March 24th 2009 An article by an Illinois Funeral Directors Association Insider has been posted at the State Journal Register. There seems to be a frightened public, a panic in Illinois about their Preneed Funeral Policies. Chris Butler a local Funeral Director in Illinois and former IFDA committee member said:
Snippet: “I feel an obligation to reply to the recent SJ-R editorial regarding the Illinois Funeral Directors Association (IFDA) Trust and the many recent articles by writer Bruce Rushton. Area residents need to be reassured they will receive what they planned and paid for and that the concept of advance planning is a safe, secure and meaningful one.”
My Comment Here: Reassurance needs to take the form of Regulation and Investigation to make sure misappropriation or fraud (?) in an Advance Planning preneed trust fund does not happen again.
Snippet: “the SJ-R editorial has created a confused and frightened public“
My Comment: The SJR editorial, the reporter, the articles did not create a confused and frightened public. THE ACTIONS OF FUNERAL DIRECTORS and the ILLINOIS FUNERAL DIRECTORS ASSOCIATION CREATED the whole mess.
For now here are some of my comments posted at the State Journal Register article March 24th 2009.
“This posting is sad. Butler has been active on IFDA committees over the years. He is an IFDA insider. Although he speaks of ‘trusting the funeral home’ Trusting the funeral Home and the IFDA is what caused the problem in the first place.
A 59 Million dollar loss is at least a mismanagement maybe fraud. How can such a small group of Funeral Directors mismanage so much of the folks money? Butler’s committee activities make him a party to the mess.
Regulators did not do the deed of selling and mismanaging IFDA policies.Funeral Directors and the IFDA did.
Quote: ‘It is important also to note that under MOST pre-need contracts, it is the funeral home, not the consumer, who bears the risk of the funding options performance.‘
What happens to those “folks”who are not most? The Question still remains. Who will notify IFDA non-guaranteed policy holders of their losses?.
In spite of all that is said above-preneed prepayment comes down to the funeral director gets the interest on your money. This other point of view is left out of THIS article.
It would be helpful if interested folks would be given the specifics of the news release mentioned above,
Who,what, why, and where.
Your Funeral Guy, Author, Funeral Director, State of Illinois and Commonwealth of Virginia”
Source State Journal Register-Springfield,IL
As mentioned before the NFDA Secretary is involved here.