A spokesman for Dan Hynes has convinced me he handled the Illinois Funeral Directors Association ponzi Scheme well
Carol Knowles a Spokesperson for Illinois Comptroller Dan Hynes convinced me that IL Candidate for Governor handled the Illinois Funeral Directors Association Preneed Ponzi Scheme quite well.
The complexity of Funeral Preneed, the Lack of cooperation of the Association along with State Government intergovernmental regulation, make this issue confusing. I am simply posting the Dialogue here. This Continues from the last post. The conversation is significant for The ILLINOIS GOVERNORS RACE IN 2010, funeral directors and the Illinois funeral consumer.
On Jan 24, 2010, at 2:45 PM, Robert Burkhardt wrote:Are you not being a little too technical, Was not the IFDA Preneed Trust sold through their member IFDA member Funeral Homes? I think that means they were partnering with the funeral homes in the sale of Preneed.
I have been researching this Illinois Funeral Directors Association Mess since since mid 2007, discovering the matter by accident. I have spoke with Bruce Rushton on the phone on this matter over the past several years. The burning question is if there were 2 sets of books why did the Comptroller not send the matter to the States Attorney?
In 2009 Comptroller Hynes said the IFDA stole the money. Why are not the IFDA leaders being prosecuted or been prosecuted by now? Why was not the matter forced into prosecution. (The Governor is chief Law Enforcement Officer in the State)
So the way the Illinois Comptroller handled the matter is the point.
Thanks for your comments.
Your Funeral Guy
Funeral Preneed still seems quite ugly and deceptive for the Consumers.
Hello back,
I’m sorry. I don’t think I’m being too technical.This is a complicated issue. I appreciate Bruce Rushton, but I don’t always agree with his articles. He tends to come at them with an agenda. I say this as a former Capitol Bureau Chief for UPI who did quite a bit of investigative journalism regarding the government. He knows what he choses to leave out of a story is just as important as what he puts in. And I can tell you he leaves an awful lot out.I GAVE Bruce Rushton the documents he used for that story. I called him. I would have given the documents to him in Spring last year when he originally asked for them, but we were bound by the IDFPR confidentiality agreement. I have nothing to hide and nothing to gain. I’ve earned a reputation for truth, strong ethics and straight shooting over many years. I know that a person’s word is all that they have.The Comptroller’s office does not license sellers of insurance policies (IDFPR Insurance Division). The Comptroller’s Office doesn’t regulate banks. (IDFPR banking division). The Comptroller’s Office doesn’t regulate trusts (IDFPR trusts).IDFPR is a state agency under the direction of the Governor.The IFDA Trust was the investment instrument for many funeral homes/directors. They could have put their money in a bank money market account, the stock market, whatever they chose. The Comptroller’s Office wouldn’t regulate the BANK the funeral director put the money in. It doesn’t regulate Merrill Lynch, which sells a variety of investments, including insurance. It doesn’t regulate stock brokers etc.Funeral directors chose the IFDA Trust. Why? Because the IFDA was promising higher than market interest rates. Put the consumer money with us, rather than a bank, they would say, and you will earn more interest on the money.
Problem was, the Trust wasn’t earning what the IFDA Trust told its investors (funeral directors) it was.
But if those funeral directors happen to have consumers who died before this whole thing blew up, the funeral director was the one who profited because he/she received that higher, unsupportable interest rate.
Did you notice the funeral directors weren’t complaining when they were PROFITING? It isn’t THEIR money to begin with. It is CONSUMERS MONEY.
The IOC went to IDFPR because it is the regulatory agency. It had the authority to regulate the IFDA Trust. To shut it down. To freeze the fund. To take any and all appropriate steps in the interest of consumers. It was the IDFPR that told IOC that the transition had to be quiet to avoid a run on the trust. It was the IDFPR that required a confidentiality agreement on the matter. Just as the feds go in and take over a bank quietly, the IDFPR could have stopped the IFDA immediately. This activity went on for decades.We filed a civil suit against the IFDA through the Attorney General’s Office to get $10 million in excess fees the IFDA took. We by law, must be represented by the AG. The AG thought this was the best way to go as well. We went in that direction because it is a faster way to get consumer funds back. That was our primary interest. A criminal case is always a possibility, It has not been ruled out. But the penalties unfortunately are not large and putting these guys behind bars doesn’t help get consumer funds back. Consumers and their funds were and continue to be our priority.The ML sales person who was responsible for these policies lost his license. The Secretary of State’s Securities Division is still negotiating a settlement with him. None of that has been in criminal court. It has all been civil actions.If the Comptroller’s Office hadn’t stepped up to end this mess it likely still would be going on.Sorry if I am too long winded here. Just trying to explain.
Thanks you explained this quite well and explained the Comptrollers actions. You may have just persuaded me to vote for HYNES. You are correct Funeral Directors did not complain when they were profiting. I believe they had a moral obligation to check up on the investments in the IFDA Preneed Trust. It was the customers money not theirs.
It is very frustrating however to see the good old boy network in place at the IFDA. As a Funeral Director I Have pulled out of the Illinois Funeral Directors Association.
I will clarify this on the blog, but i think the consumer finds this far too complicated
You have revealed significant things about the IFDA situation that both the consumer and Funeral Directors should know!
Thanks
Your Funeral Guy.
It is very complicated.I agree. The good old boy network at the IFDA is bad.The funeral directors have begun moving their money elsewhere, now that the fund is no longer frozen. And that’s a good thing. I hope they act wisely now.Thanks for listening.Carol
Tags: candidate, Carol Knowles, Comptroller, dan hynes, funeral, funeral industry, governor, IFDA, Illinois, Illinois Funeral Directors Association, Ponzi, preneed
