Illinois Preneed Scandal Explodes upon Association-YourFuneralGuy

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The ongoing Preneed Scandal in Illinois has taken a turn that may effect the financial future of Funeral Directors in Illinois and especially those of former executive Board Members including the current NFDA elected Presitent Randal L. Earl

Board Members of the IFDA may be personally liable for up to 100 million in losses.

The scandal has been going on since 2007 and intimately involves the former Senator Roland Burris(D-IL),

The Fact that some of the  many associations losses will not be covered by their association may in fact be a death blow to the Illinois Funeral Association.

 

A federal judge ruled last week that the insurer for the Illinois Funeral Directors Association would not be responsible for claims resulting from litigation surrounding the association’s beleaguered Master Trust.

In March 2009, Federal Insurance Company, which has provided up to $5 million coverage in business insurance, including coverage for directors and officers of IFDA since 2005, filed suit against IFDA stating it should not have to pay the claims associated with the previous two lawsuits — one in Circuit Court of Kane County and the other by the six funeral directors in Cook County, which alleges mismanagement of the Preneed Trust the fund by IFDA that resulted in millions of dollars in losses. The insurer claimed that IFDA did not notify the company of claims in a timely manner.

In the U.S. District Court for the Northern District of Illinois, Judge Samuel Der-Yeghiayan sided with Federal Insurance Company ruling that IFDA failed to give the firm proper notice of claims against it.

 

via memorialbusinessjournal.wordpress.com

Your Funeral Guy has been covering this since February 2008  along with the State Journal Register in Springfield, Illinios. Extensive coverage of this subject can be found at yourfuneralguy.com and lowercost funeral.com

This indeed may be the final chapter of the current  Illinois Funeral Directors Association due to the IFDA Preneed Trust Scandal.

Funeral Industry|Funeral News | Funeral Blog By Your Funeral Guy

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• Randall L Earl To Be Pres.Elect of NFDA|Funeral nightmare-yourfuneralguy (yourfuneralguy.wordpress.com)
• California Master Trust-Who owns preneed?-Your Funeral Guy (yourfuneralguy.wordpress.com)

Congressman Rush Complements Illinois Funeral Scam Man”Randall Earl”|Your Funeral Guy

Congressman Bobby Rush has complemented  a key Player in the Illinois Funeral Directors Association preneed,funeral scandal, Randall  Earl.

Earl is the current  executive treasurer at the  National Funeral Directors Association (NFDA). He is a past Illinois Funeral Directors Association President. There is evidence that the project he directed at the IFDA, the now closed Museum of Funeral Customs was set up and maintained with the folks prepaid funeral funds.

Congressman Bobby Rush in response to The Burr Oak Cemetery Scandal is sponsoring the Bereaved Consumers Bill of Rights act (AKA bereaved consumers protection act). Rush spoke before the NFDA Advocay Summit in Washington DC earlier this month.

Rush complimented NFDA Treasurer Randall Earl on the testimony he provided in January during a hearing of the House Subcommittee on Commerce, Trade and Consumer Protection concerning H.R. 3655. He noted that Earl’s testimony brought balance and perspective to the hearing.

via www.facebook.com

If Congressman Bobby Rush did complement Earl  either he does not know or does not care about Randall L Earl’s involvement in the Illinois Funeral Directors Association Preneed Ponzi Scheme.

More on this

NFDA Elects Possible Felon as Executive Treasurer

NFDA Randall L Earl must go

Funeral Industry|Funeral News|Funeral Blog by Your Funeral Guy

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This is not a personal attack on Randall Earl. He is a major player in a  public preneed scandal. Funeral Directors need to be above reproach.  Congressman Rush has displayed great courage in Proposing the Bereaved Consumers Bill of Rights Act. It is quite possible that he bobby Rush is not aware of Randall Earl’s history.

Illinois Press remiss in Coverage of Funeral Director Swindle?-YourFuneral Guy

The Illinois Press has been remiss in it’s handling of the Illinois Funeral Directors Association Preneed Funeral Insurance Swindle. This may indeed be in part because of the misinformation (babbling)put out this year by the Executive Director Of the Illinois Funeral Director’s Association Duane Marsh.

The Illinois Funeral Directors Association Stole and Mismanaged between $59-100 million of the  folks funeral money in the State of Illinois.

Marsh who has been only in Illinois nine months is really not qualified to deal  with the depth of funeral( NFDA’s Randall L Earl, Charles Childs Jr) and political corruption ( Illinois Senator Roland Burris founding poitico, and lobbyist of the IFDA Preneed Trust). It also should be noted that this is his first Funeral Directors Association.

Nine months in the state with  failed promises to bring a NEW ILLINOIS FUNERAL DIRECTORS ASSOCIATION IN JUNE 2009-it has been the same old same old-Lawsuit after Lawsuit, Investigation after investigation and trustee after trustee for the  IFDA Preneed Trust! Just like the corrupt Executive Director before him Duane Marsh  has to get up every morning and spin  a web of misinformation and lies.

Then there is that look yourself in the mirror thing.

Funeral Director|Funeral Industry Blog

Duane Marsh is mentioned here because he has been mentioned In Numerous reports(articles on The IFDA Preneed  Ponzi Sheme.

Coverage in the Press By on the IFDA Funeral Scam Has Been Minimal. The State Journal Register in Springfield, Illinois has done an excellent job covering this matter.

Medical Science delaying Baby Boomer Funerals-Your Funeral Guy

Medical Science is hollding back the Funerals of Baby Boomers

Medical Science is holding up Baby Boomer Funerals and an explosion of Business for the Funeral Industry. Because of the recession interest in Funeral Service is up 20% according to Mortuary schools. The cremation rate for 2009 has jumped to 38% nationwide.

Many folks are leaving their traditional jobs thinking they are entering a recession proof business called funeral service. Cremation sales are up and traditional sales are down. It is not the number of Sales that are down but the amount of Funeral Goods and Services  people are buying.

From Bakersfield.com

“To the funeral industry, the deaths of baby boomers – people born between 1946 and 1964 – is a windfall worth lusting over. But first, the industry must survive the current “death trough,” the decline in death caused by advances in medical science, among other things.

According to federal agencies that track population and health statistics, the nation’s death rate has dipped slightly and is expected to be “stagnant” for several more years.”

The Funeral business is hurting and anyone who suggests you will have a new  profitable career there is lying. Preneed Sales or prearrangement sales are down 50% (according to the NFDA)and the industry is tarnished by Scandal(IFDA,NPS, Neptune Society, SCI).

Yes Medical Science is holding back baby boomer funerals, but the funeral industry will have to adjust before wind fall profits arrive.

Funeral industry|Funeral blog by your funeral guy.

Burr Oak Cemrtery Scandal: Proposed legislation Comment -yourfuneralguy

Subcommittee returns to DC to write Federal Cemetery Legislation

A  United States House of Representatives Subcommittee is about to propose Federal Cemetery legislation. This is in reaction to the Burr Oak Cemetery scandal. The comments here by MarsellusM710 are his opinions and not those of Your Funeral Guy.

“Dear Funeral Guy and Funeral Service Colleagues,

When will it all stop???  The idiotic actions and the lack of integrity of those involved with the infamous catastrophes in funeral service is simply unforgivable. Tri-State Crematory, NPS, IFDA, the organ/tissue ordeal, SCI’s Cemetery problems, and God only knows how many others and now Burr Oak.  What were they thinking???

And every time there is a reported wrongdoing issue in funeral service or cemetery care the consumer advocacy groups rear their ugly heads and scream for new or more regulation, When in fact there is more than likely regs on the books that already cover the violations and wrongdoings but are not enforced.

Regulators need to get off their duffs and out of the office buildings and be more visible in the field.  In one instance, a field auditor for the Illinois Office of the Comptroller, was doing his or her job, but the boss (Hynes) wasn’t listening or didn’t want to listen, and you see what that got IFDA Trust into.  When regulators, local, state or federal, don’t or won’t do their jobs and lets take it on down to the managerial level, you can almost bet fraud, deceit and greed will raise their ugly heads.

The deeds done at Burr Oak Cemetery has the gruesome makings for an ungodly horror movie.
The Black Community, an entity of people who truly value the traditional funeral, done a dirty deed by a group within the “community” itself.  Crime truly knows no color or economic background.  Those involved with this will not survive prison.  The Black Community will not stand for this to go “unpunished”, even behind prison walls.

Respectfully submitted,
MarsellusM710″

Funeral Industry|Funeral Blog by Your Funeral Guy

“From the Chicago Tribune”

Stirred by the emotional testimony of the living victims of the Burr Oak Cemetery scandal, congressional leaders left Chicago on Monday intending to push for legislation for federal oversight of the cemetery industry.

Burr oak cemetery pic from religion dispatches.org

News Article points to Comptroller In Illinois Funeral Mess-YourFuneralGuy.

July 5th 2009- Today in a  print Newspaper areporter in Illinois put forth a great summary of the Funeral Preneed mess in Illinois. The reporter has seemed to lose his perspective on the matter however. He seems to blame to the Comptroller of the State of Illinois for the IFDA Preneed Funeral Mess of nearly100 million dollars….

From the State Journal Register Springfield,IL

“Even as a pre-need funeral fund worth hundreds of millions of dollars began tanking in 2001, the state comptroller’s office ceased audits designed to ensure the money was safe.”

This seems to be the latest smokescreen in the Illinois Funeral Directors Ponzi Scheme. The Illinois Funeral Directors Association has filed a lawsuit Against the Comptroller in Illinois. The Six Illinois Funeral Directors who  have filed a lawsuit{against the IFDA} have amended it leaving comments about the poor policing job the Comptroller of the State of Illinois.

The NFDA Executive Secretary is a key player in Illinois Funeral Scandal. He HAS SHOWN NO REMORSE.

IT IS ALWAYS EASIER TO BLAME THE COP,AUHORITY THAN FACE YOUR OWN RESPONSIBILITY IN THE MATTER AT HAND.

THE FACT IS THAT THE ILLINOIS FUNERAL DIRECTORS ASSOCIATION DID NOT EXERCISE DUE DILLEGENCE WITH THE FUNDS IN THEIR CARE.

The FUNERAL DIRECTORS LITIGATING THE IFDA-did not watch their leaders or hold them accountable. Those LEADERS ( individuals) are the ones responsible for all the funeral grief and pain in the Illinos Funeral Directors MADOFF like Poni scheme. They should be prosecuted.

Funeral Industry|Funeral Blog by Your Funeral Guy.

Any time Funeral preneed funds are stolen or msiappropiated funeral directors and preneed policyholders lose money.

Merrill Lynch Holding “Fire Sale” in Illinois funeral mess-YourFuneralGuy.

The Illinois Funeral Directors Association preneed scandal has brought great grief to the folks in Illinois.

Merill Lynch(MLBT) is holding a “Fire Sale of IFDA Preneed Trust Life Insurance Policies.”  This is another factor in the demise of the Illinois Funeral Directors Association.  As the trustee of the assets of the IFDA Preneed Trust, Merrill Lynch has  the right to do thi:. Hold the fire sale and cash out the life insurance policies involved.

The more the Illinois Funeral Directors Association preneed policy mess spirals out of control the more the consumers will pay in raised funeral prices. New problems for the going to the grave IFDA appear each week.

According to the State Journal Register 06.15.09.

“Rather than risk getting no money at all, the trustee{Merrill Lynch} for a troubled pre-need funeral fund is surrendering life insurance policies for cash value, worsening already steep losses in a fund that’s supposed to pay for funerals for more than 40,000 people in Illinois.”

In it’s amended lawsuit the six Illinois funeral directors suing the IFDA named some of the insurance companies whose policies are being written down. The argument here is that there is no insurable interest for the IFDA in the lives of the funeral directors lives covered. Insurable interest is the responsibility of the the insurance company selling the policy.

The Illinois Funeral Directors Association Scandal Continues to bring great loss and grief to the State of Illinois.

Your Funeral Guy

New Commentator on Illinois Funeral Mess | Law-YourFuneralGuy.

All sides in the Illinois Funeral mess have some Ethical problems

The more I study the Illinois Funeral Directors Association  Funeral preneed ponzi scheme the more i come over to the side of those funeral directors who are have filed a lawsuit against the association. Some of those folks have ethical problems that are equal to those of the IFDA.

The opinions expressed below are those of  MarsellusM710

With that said I am turning the blog over to  the commentator today

Dear Funeral Guy and Funeral Service Colleagues,

Integrity is the Real Issue in the Illinois Funeral Mess

Clap…..Clap…..Clap, an astounding round of applause for our Comptroller and Savior of the Illinois Consumer, Mr. Dan Hynes for a 58 – 0 vote in the Illinois Senate, and not a one of them asked him where he was when his field auditors notified his Chicago Office that the IFDA Trust was in trouble in 2002 and why was it allowed to hemorrhage for soooo long.  While the new legislation was not really necessary, it more or less clarifies what is already law.  Mr. Hynes needs to focus on and just make sure that each and every Independent or third party Trustee is in fact, properly licensed. Something everyone of his predecessors failed to do as well , since the days of Roland Burris, our  current junior Senator.

Like I said in an earlier tirade, This legislation, SB1682, is nothing short of knee-jerk reaction to a catastrophe of a problem.  A simple effort  taken and blessed by the Consumer Gods (AARP et. al) to let the “folks” know we’re lookin’ out for them.  If anyone will read the Illinois Funeral and Burial Funds Act will see that most of the new stuff is already in there. (Repetition, yes I know)

State of Illinois regulators appear to be overstepping making a lot of ill-i-noise

I was at the Meeting last Thursday in Springfield with Mr. McRaith et.al.  It was real hard to sit there and listen to the Attorney for the Dept. of Insurance tell us F.D.’s “This is all your fault”.  Insinuating that we had the knowledge of the trust investments, and we were abreast of what our Board was doing. While there may be some truth in that statement, in effect we members of IFDA were extremely trustworthy of our Brethren on the Board.  I resent the Attorneys comments after all the information he has surely been privy to see.  What about the fault of the Board and It’s former Executive Directors, and lets not forget Mr. Schainker, for allowing cold hard earned cash to be converted into risque insurance products.

I’m surprised the DOI was not as forceful about us signing off on this settlement as he was when he and the Comptroller placed the proverbial gun to our heads last fall when we WERE forced to sign the agreement, or face loss of licensure of not only our Trustee license, but our insurance Producer License, and Funeral Director and Embalmer licenses as well, allowing Merrill-Lynch Trust Company to be the new trustee in effect of money they already controlled, as we found out.
With arm twisting actions like that, what was a person to do?

The Current Illinois Senator Roland Burris appears to have started the whole Funeral mess.

Mr. McRaith also stated that for the first time in years we saw for our own eyes what the true value of our accounts were. While that may have been a shock (understatement!) as compared to the values we were told they were valued at by statements and reports received.

Karen Blankenship, Trust Administrator for the former IFDA Trust assumed by MLTC, was in attendance.  I soo wanted to direct the question to her as to where in God’s name was she getting her info from when reporting earnings to us????
But being the gentleman that I am, I refrained from asking, and sat there like a good boy. (Save that question for the deposition)  Alot of great questions were asked, but went unanswered, some with blank stares like a deer in oncoming headlights.

I have had several inquiries from client families asking me if I am signing off on the agreement.
Most of them received their notice(s) of account status recently.  Recoupment of pennies on the dollar doesn’t excite them either. I’ve told them I’m choosing not to because it is not in either my or their best interest to do so. A question of IF there are tax implications  by receiving the settlement monies needs to be addressed as well. Besides, by signing off ties my hands and disqualifies me from further action to be taken against M-L and their subsidiaries and employees should I choose to participate in that. I have told them that this rests on my shoulders, not theirs, and that I have to make good on all contracts or else.  Either way the threat to my livelihood is realized through community reputation crucifixion or regulatory wise.

Will there be more settlements more regulation?

The one thing that I did come away with last Thursday was this.  Mr. McRaith stated that there are further regulatory actions to be taken by the Illinois Secretary of State, Div of Securities, and the IDFPR Div of Banks and Trusts against M-L and Mr. Schainker.  And that further settlements could POSSIBLY be realized.

While the Comptroller and the Dir. of Ins. may have won the battles at the Capitol Building in Springfield, the war is still on and will have to be decided in Court(s).

May the Derivative Lawsuit prove fruitful and victorious for the plaintiffs and those affiliated.
(Amen)

You are so right about being “marked” men by those whom regulate. Should the Lawsuit fail,(Heaven Forbid!) look for a purging and all out vetting of those who have dared to speak out against those in charge/involved.  Imagine for a moment if you will, a small planted error in your trust report, that gets blow out of proportion, that finally leads to ones ruination even though they’ve done nothing wrong, or IDFPR get a “complaint” by a fictitious family about ethical misconduct, etc. and you or your atty., never have the opportunity to know or interview said person, you loose you licenses even though you’ve done nothing wrong.  Sound far fetched?

Remember you are in Illinois, they’ve been know not to play nice here.

That’s all for now,
MarsellusM710

Funeral Industry|Funeral Blog by Your Funeral Guy

Burris Picture from Flickr under the Creative Commons licence from

chicagopublicradio ’s photostream

Illinois Funeral Directors Mess- Bill to become law-YourFuneralGuy

There has been a new law passed in the Illinois Funeral Directors Mess. The bill  was sponsored by the Comptroller.  Last week it passed the legislature is slated to become law. The law is in the legislature was known as Senate Bill 1682.

All this was revealed in a Office of the Comptroller press release.

State of Illinois legislature has passed new preneed law

“The Senate approved the measure 58-0 sending it to the Governor. The House approved the legislation earlier in the week.

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. It modernizes and strengthens oversight of consumer funds and increases the amount of information consumers receive about their investments.

Your Funeral Guy says  that this is only the first step. Requiring the Funeral directors to put  95% of the folks money in a safe place (where is that?) will help preneed purchasers in the state. It also overall makes funeral directors in the state quite angry.

Funerals directors in the state are quite upset about the agreement that the State of Illinois, reached with Merrill Lynch opposing the agreement the comptroller and other regulators came up with. They have vowed to fight the regulators. How can that be done?

How on God’s earth will they fight the regulators? Will they simply by marked men as is often the case of those who oppose STATE of ILLINOIS politicians?

The Illinois Funeral Directors Association(IFDA) dropped their funeral bomb and funerals in Illinois will take years to recover. They may have caused increases in traditional funeral cost to happen for years to come.

Funeral Industry|Funeral blog by Your Funeral Guy.

Over 100 Funeral Directors meet in Illinois Funeral Mess-YourFuneralGuy

Jeff Dames one of the six funeral directors in a lawsuit against the IFDA has taken some leadership in opposing the The STATE OF ILLINOIS $18 mil SETTLEMENT WITH MERRILL LYNCH in IFDA Funeral Director Mess.

Over 100 Funeral Directors have met in opposition to  a State  Settlement  in the Illinois Funeral Directors Pre need Scandal Mess. It all involves a State Settlement With Merrill Lynch  for $18 million. Funeral Directors say that 18 Million is not enough to cover their losses.

It was not revealed if this meeting was a precursor to a new funeral association in the State of Illinois. The six funeral directors suing the IFDA have a website with what appears to be a logo.

“Their Organization is called THE IFSA

I have it on authority that these folks are E-mailing IFDA members around the State. I received an E- Mail from the Six Funeral directors above.”-Quote from previous post on this blog.

Whether the IFSA is an organization reffering to the six Funeral Directors themselves is not clear. As suggested here in a post, IFSA may be the Start of  a new IFDA.  “Six Suing ILLINOIS Funeral Directors Start Own Trade Association?” (this post has been updated.)

What is clear is that the six mentioned funeral directors  got over 1oo Funeral Directors and their Lawyers to meet at the Crown Plaza Hotel on Wednesday, June, 4th.2009.

Springfield, IL where Illinois Funeral Scandal began and continues.

According to the State Journal Register in Springfield Illinois in a June 5th 2009 inprint article:

“More than 100 funeral directors gathered Thursday in Springfield to challenge an $18 million settlement reached between the Illinois Division of Insurance and Merrill Lynch.

The amount is a fraction of what undertakers say they’ve lost due to poor investments made with money paid into a pre-need funeral trust fund that has tanked……

Afterward, funeral directors met at the Crowne Plaza Hotel and vowed to fight the provision that requires them to release Merrill Lynch from liability in order to collect their shares of the settlement – the largest settlement of an insurance case in Illinois history.

“Do you stand on your principles or do you take the money?” asked Jeff Dames, whose family owns funeral homes in Joliet and Morris. “We’re going to hold their feet to the fire, and we’re gong to make them accountable.”

According to the State Journal Register Jeff Dames and Fred C. Dames Funeral Homes have taken leadership in

Funeral Directors are very angry with the Regulators in the State of Illinois aboutt an $18 Mil Settlement with Merrill Lynch

opposition to the $18 Mil. Agreement  between State Regulators and Merrill Lynch.

“Dames and other funeral directors blame state regulators as much as Merrill Lynch for the financial mess, which festered for years before the state took action.

“The laws that are in place should have protected us,” Dames said”

Funeral Industry|Funeral Blog by YourFuneralGuy

THIS POST IS RELEVANT TO THE ILLINOIS FUNERAL CONSUMER BECAUSE FUNERAL DIRECTORS IN THIS STATE LOST NEAR 100 Million in this Preneed Scandal.

IN MOST CASES FUNERAL DIRECTORS MAKE UP LOSSES BY RAISING PRICES.