News- May 1st, 2009 It has been revealed that a new preneed law has been proposed in the Illinois Funeral Directors Association(IFDA) Scandal. Hopefully the new Law will protect peoples funeral money who choose to put dollars into prepaid funerals.
The Illinois Funeral Directors Association lost 59 Million plus in a ponzi scheme involving insurance. The funeral funds went to high IFDA salaries, loans to board members, a funeral museum that failed, and other things still under investigation.
This was all revealed in a press release by the Illinos by the Illinois Comptroller Dan Hynes yesterday
“”SPRINGFIELD, IL — Comptroller Dan Hynes is proposing stronger regulations to protect consumer investments used to pay for funeral and cemetery goods and services.”
” Hynes said the legislation (SB1682) is needed to help prevent shortfalls similar to the one that occurred with a trust fund intended to pay for consumer funerals that was used by hundreds of funeral directors and administered by the Illinois Funeral Directors Association”
The Springfield, Illinois Newspaper the State Journal Register summed up the bill in an article today.
“Under the bill, which is sponsored in the General Assembly by Sen. Deanna Demuzio, D-Carlinville, pre-need funeral trust funds would have to be managed by corporate fiduciaries. The bill would also establish a consumer protection fund built from $5 fees taken from each pre-need funeral contract sold. The money would be used to pay restitution to consumers if funeral homes don’t live up to their end of deals.”
Sadly this scandal has spread to the National Funeral Directors Association(NFDA). Funds were misused by the current NFDA executive Secretary, Randall L Earl, when he was IFDA President in 2oo1.(10.6 million loss). He also continued to misuse funeral folks funds in management of the IFDA’s Museum of Funeral Customs. NFDA Executive Secretary Earl has refused to step down. He has been named in three lawsuits.
The Leadership of the NFDA refuses to let go of Randall L Earl. It would be good to let him leave before more of this mess is revealed.
Because of all this in the end there is lack of trust for funeral directors, the IFDA and the NFDA.
Funeral|Funeral Industry blog by Your Funeral Guy