National Prearranged Services pulled off their frauds with Life Insurance policies.
The National Prearranged Services Scam, will cost between 600 million and 1.6 billion dollars according to different estimates. It is by far the largest funeral Scam in the nations history.The indictments will continue finding their way to the founding Cassidy Family(owners). This preneed insurance scandal went on for decades.
The tragedy here is three fold. 1)Funeral directors have to complete paperwork to get paid for these contracts from State Assurance Guaranty Agencies. Sometimes the reimbursement is not complete. 2)This is a massive taxpayer expense to pay on these contracts. These Costs get passed on to the consumer and the cost of traditional Funerals is raised.
And (3) The distrust of Funeral Directors and the Funeral Industry multiplies exponentially.
From St. Louis:
In August, NPS chief financial officer and director Randall Sutton, 63, of Chesterfield, was indicted on mail fraud, money laundering, and wire fraud charges.
Thursday, Sharon Nekol Province, 65 of Ballwin, was charged in a superseding indictment with five felony counts of mail fraud.
Province was president and office manager of NPS and held a position with an affiliated company.
NPS marketed the prepaid contracts as a way for consumers to ensure that they would not burden heirs with the cost of their funerals. The price they paid for a contract was used to fund a life insurance policy that would pay the actual funeral costs. But the indictment says that company executives and others knew as far back as 1998 that the anticipated costs were exceeding the anticipated insurance income by $98 million.
via www.stltoday.com
Funeral Industry|Funeral blog by Your Funeral Guy.
