Your Funeral Guy in Dow Jones Newswires

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Your Funeral Guy has been Featured in the Dow Jones NEWSWIRE  Prepaid Funerals Like Digging Your Own Grave  December 2, 2010 9:16 a.m. EST By AL LEWIS A DOW JONES NEWSWIRES COLUMN R. Brian Burkhardt is a funeral director in Illinois and Virginia who writes a blog called “Your Funeral Guy.” It’s filled with handy consumer tips, as is his book, “Rest in Peace, Insider’s Look at the Low Cost Less Stress Funeral.” Burkhardt also covers the funeral news: “Mom fakes daughter’s funeral.” “Father sues after son’s body falls out of casket.” “Corpses to appear on cigarette packages.” And, “Unclaimed cremated remains: A growing problem.” One of the biggest stories on the funeral beat these days involves a St. Louis, Mo., company called National Prearranged Services Inc. and its related businesses operating in several states from Illinois and Ohio to Tennessee and Texas. Federal prosecutors last week unveiled a 50-count indictment burying six controlling officials in assorted criminal charges: money laundering, conspiracy and wire, bank, mail and insurance fraud. Defendants are Doug Cassity, 64; his son, Brent Douglas Cassity, 43; Howard Wittner, 73; Randall Sutton, 65; Sharon Nekol Province, 66; and David Wulf, 58. The indictment alleges they took as much as $600 million that should have gone into trusts and life-insurance policies to cover as many as 150,000 funerals. “White-out was the main tool,” Burkhardt said. “It’s sounds blastedly simple, but that’s what they did.” Indeed, one of the many tricks alleged in the federal indictment is altering documents with correction fluid. Money that should have gone into trusts or to pay life-insurance premiums for the funeral plans were diverted to pay for business investments, luxury homes and jewelry, the Feds allege. A Ponzi scheme for the dead? Toni Weirauch, special agent in charge of IRS-criminal investigations in St. Louis, said his office “is committed to investigating individuals who allegedly use their businesses as personal piggy banks.” The losses will go to state insurance guarantee associations, plan purchasers and funeral homes. Connie James of James and Gahr Mortuaries in St. James, Mo., said her family-owned funeral business put all of its prepaid funeral funds with the company. A state fund likely will get stuck with most of the tab for the prepaid services her company has contracted to provide, but not all of it. Some of the losses will be hers. “You just pray every day that you’re going to be here tomorrow,” James said. She has a name for defendant Doug Cassity, who went to federal prison in the early 1980s for charges stemming from his investment club. “He is the Bernie Madoff of Missouri,” she said. She wonders how so blatant an alleged fraud could have gone on for so long in an industry that is supposed to be regulated. Cassity’s criminal past, and issues with underfunded trusts dating back to the 1990s, didn’t set off the alarms until the shortfall was enormous. “$600 million. That’s a lot of damn funerals,” James said. National Prearranged Services sold folks on the idea that they could pay today’s prices for tomorrow’s funeral services. Say you put $5,000 down now, and if the funeral you want costs $15,000 due to future inflation, no problem. “Any product that says, ‘We will cover you no matter how much your prices increase’ is too good to be true,” said Scott Gilligan, general counsel of the National Funeral Directors Association in Brookfield, Wisc. “That should have been everybody’s first clue,” he said, “because nobody can do that.” Burkhardt said he’s been warning consumers not to buy prepaid funeral plans for years. “It’s better to a get term life insurance policy and apply that money to the funeral,” he said. He also says the scale of the National Prearranged Services case shows how easily prepaid funeral funds are diverted, and how long it can take regulators to do something about it. “Every week, somebody misappropriates pre-need funds, and every two to three weeks somebody gets caught,” Burkhardt said. “I have had a funeral director tell me, “When I can’t meet my payroll, I just borrow from the pre-need fund.” That’s fraud. But in their minds, it’s kind of their money.” Burkhardt said he suspects business will go on as usual, despite the news he covers on his blog. Reading up on prearranged funeral plans isn’t something folks always do before they buy. “People don’t want to talk about death,” he said. “You almost have to trick your mind to think about it. That’s why people buy these plans.” –(Al’s Emporium, written by Dow Jones Newswires columnist Al Lewis, offers commentary and analysis on a wide range of business subjects through an unconventional perspective. The column is published each Tuesday and Thursday at 9 a.m. ET. He can be reached at 212-416-2617 or by email at al.lewis@dowjones.com, or on his blog at tellittoal.com.) (We invite readers to send us comments on this or other financial news topics. Please comment on Al Lewis’ blog at http://tellittoal.newswires-americas.com/. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.) URL for this article: http://www.djnewsplus.com/article/0,,SB129129867914576950,00.html Related articles National Prearranged Services Executives Indicted-Your Funeral Guy (yourfuneralguy.wordpress.com) Recycled Pacemakers-To be done by USA Funeral Homes-Your Funeral Guy (yourfuneralguy.wordpress.com) Funeral Industry| Funeral News| Funeral blog by Your Funeral Guy Due to my stint in ICU and hospitalization it took some time to get this article up. YOUR FUNERAL GUY HAS BEEN Featured in the Dow Jones News Wires. Your Funeral Guy is quoted but other opinions are mentioned.

ARTICLE FROM  AL’S EMPORIUM

Preneed Irresponsibly sold to Disabled Person-YourFuneral

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The Chicago Tribune has done an article on preneed aggressively sold to  a person on disability. This is truly another example about why  one  should not pre-purchase, prepay a funeral. This  type of aggressive salesmanship is not needed or good for the Funeral Business.

The flier that arrived in Carol Rognstad’s mailbox sounded like a great deal. For only $38 a month, she could prepay for her future cremation.

The 48-year-old, who is mentally disabled, prides herself on doing things on her own. So she called the number listed and set up an appointment.

In mid-July, a representative from Warren Funeral Home visited her low-income apartment in Round Lake Beach. Rognstad signed a 60-month contract, in which she agreed to pay a total of $2,280.

But a few months later, Rognstad began having second thoughts. Because she relies solely on her monthly disability check, the $38 payment had a significant impact. Concerned she had done something wrong, Rognstad called her mother, Holly Anderle, and asked for help.

via articles.chicagotribune.com

$2,280 USD is far too much to pay for a cremation.

Funeral industry| Funeral News| Funeral Blog by Your Funeral Guy

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Preneed Insurance could pay two funerals instead of one|YourFuneralGuy

A Preneed Funeral Arrangement is a contract, it is not wise to participate

Funerals .org has outlined a funeral complaint about preneed insurance. Incredibly insurance premiums total more than twice the cost of a funeral. The Funeral industry needs to stand up and take note of this complaint.

This presents us with a concrete example of the Dangers of funeral preneed. Your Funeral Guy has seen first hand the horrors of the preneed company mentioned below and has refused to work for this  funeral preneed firm  firm

Another example of the financial dangers of prepaid funerals. This Iowa couple was shocked to discover they’d have to pay almost $28,000 in insurance premiums for funerals that would cost only $14,000. Read their complaint-

After sending more than $11,000 to Homesteaders Insurance over the past four years, we recently decided to see what the exact balance due would be. The funeral home told us to call the insurance company. We were shocked to learn from Homesteaders that we hadbeen locked into a 10-year payment plan at the rate of $230.83 a month. At that rate, we would have to pay $27,699.60, about double of what the actual funerals would cost.

via www.funerals.org

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

Who own’s Preneed Trust Funds|no clear answer-YourFuneralGuy

National Prearranged Services pulled off their frauds with Life Insurance policies.

Who own’s funeral preneed? Is it the bank that own’s the trust fund? The insurance company?  The Funeral corporation?The funeral director? The policy holder?The answer is not in plain sight. This makes repaying a funeral not a good idea.

Because the laws are different in each State, each may have a different answer. Because each contract is different clearly the Managers of the IFDA Trust(through IFDA services)thought the money was theirs when they robbed it. The funeral corporations list the money as theirs on the balance sheet(this is true for SCI, Big Death, Service Corporation International and other funeral corporations).

Funeral Directors count on the preneed money being there, for themselves and their funeral home.

NPS, National Prearranged Services saw the preneed  insurance money in their contracts and they took it.(preneed insurance is different from life insurance)The consumer who purchases the preneed contract often walks away thinking the money  is their own. Sadly that is never the case.

Funeral industry| Funeral Blog by Your Funeral Guy

 

Scandal Ridden Illinois Funeral Directors (IFDA) Seeking trustee again-YourFuneralGuy

The Lesson of the IFDA (Illinois Funeral Directors)scandal is not to let the Funeral Director take your money through preneed.

The scandal ridden Illinois Funeral Directors Association is seeking another trustee for it’s IFDA Preneed Trust Fund. This is what the brought the Ponzi Scheme in to the light in the first place.

The Comptroller of the State of Illinois took away the license of  the State of the Illinois Funeral Directors Association to Manage the trust fund because the leaders of the IFDA were raiding the Fund for there own purposes. In the Fall of 2007 there losses 40 million, in fall 2008 59 million and now nearly 100 million.

At there Convention in June this summer there was talk(VENDORS) that the Illinois Funeral Directors Association will not be around next year. There is also rumors circulating about Illinois  that The Six Funeral homes Suing(lawsuits) the state IFDA are starting there own funeral directors association called The IFSA. I have not confirmed the rumor bit. That said going with the New Association maybe just just a jump from the frying pan into the fire. Some say the Funeral Home leading the charge against the IFDA  is deficient in Ethics.

This much is true The  IFDA is Seeking a new Trustee, a bad sign for their survival. From an E-Mail From the IFDA:

IFDA E-News Bulletin
Aug 26, 2009

IFDA Seeking New Trustee

“Merrill Lynch Trust Company is working with IFDA to appoint a new Successor Trustee. Conversations have been established with four financial institutions to review the possibility of taking over as a new trustee. IFDA Executive Director, Duane Marsh, cautions, “This is a very complex undertaking but a necessary one if we are to provide the fund with long-term stability.”

The IFDA is not saying why they are seeking a new trustee, and why Merrill Lynch is not continuing as trustee.

This has been the  way the IFDA has operated throughout the Scandal.

Sadly the press has not reported on these events. It is past the time that someone should speak up.

Funeral Industry|Funeral blog by Your Funeral Guy

Largest Funeral Corp Partners w/another Insurance -YourfuneralGuy

The worlds largest funeral corporation Service Corporation International(SCI) has partnered with yet another insurance company.

SCI’s numbers have been in almost a free fall for Fiscal 2009 and they have joined another Insurance Company at the hip to stop the decline. Insurance Companies have been hurting dramatically due to the recession and so have the Funeral Corporations. The latest Company SCI has partnered with is United Home Life Insurance. Previously the have partnered with SLAICO and MATRIX DIRECT.

From PR Newswire:

“United Home Life Insurance Company and Service Corporation International (NYSE: SCI) announce the creation of a partnership to enhance the products currently offered by United Home Life for agents. Through the partnership, independent agents can utilize the Dignity Planning(TM) tool to increase their profitability by offering clients the ability to turn their policy into a complete end-of-life plan. Dignity Planning is unlike any other end-of-life planning tool in that it was designed for financial service professionals and provides agents with real-time needs analysis and pricing, as well as inflation and aged-based life expectancy costs of specific elements rather than generic national averages.

Be sure to keep control of your own life insurance policy and do not turn it over to Dignity Planning

Funeral Industry|Funeral Blog by Your Funeral Guy

Dignity Logo Pic on flickr under the creative commons license  at

Jeremy Brooks’ photostream

06.12.09|Amended Six Funeral Directors Comlplaint IFDA-YourFuneralGuy.

How Could Funeral Director Leaders in the State of Illinois mishandle almost 100 Million Dollars in Funeral preneed funds?

IFDA LAWSUIT NEWS.News-June 12,2009 There was an amended Six Funeral Director Complaint filed in The  Circuit Court of Cook Today. Your Funeral Guy is not a lawyer. What is truly sad is that one simple Funeral Director has to declare the latest in an almost 100 Million  Funeral Insurance Fraud in the State of Illinois.

The information and lawsuits are accessable easily several different ways on the internet. The Media is truly remiss in this situation in not naming names because many of the Folks  named are likely to be named as “Criminals Soon”. Both the Illinois Funeral Directors Association  and National Funeral Directors Association(NFDA) are remiss in not Reprimanding, Disciplining, Or Expelling the named folks.

100 Million Dollars and no disciplining! The Comptroller and other regulators have done closed door (in True State Government of Illinois,Chicago and Obama style)deals giving some a get out of jail free card far short of the 100 million involved. There are 19 charges in the amended derivative complaint

VIEW THE AMENDED DERIVATIVE COMPLAINT HERE.

THE NAMES OF THE PEOPLE INVOLVED AS WELL AS THE CORPORATIONS ARE THERE!

Funeral Industry, Funeral blog by Your Funeral Guy, Funeral Director,Illinois, Virginia

Although I do not think that some  six suing funeral directors are ethical in any sense of the word. I must say I have pretty much come over to their point of view with the facts that have been revealed to date.

Of Course, Funeral directors, Merrill Lynch, are all part of the Illinois Funeral Mess.

DEAD MEN DO NOT TELL LIES, Neither do dead funeral directors associations.

Life Insurers offer Funeral Biz Services-Your Funeral Guy.

Wall Street Journal points out life insurers are entering the funeral biz.

According to the Wall Street Journal several Life insurance Companies are now offering funeral industry related services. This was made apparent Monday when immediately after receiving a federal bailout the Hartford Insurance Company announced it was teaming up with EVEREST -a  funeral concierge and planning service.

Snippet: from the  May 19th Wall Street Journal Article:“Legal help for probate and professional help for funeral planning are among the services being bundled into group-coverage packages by a growing number of companies. Hartford Financial Services Group Inc.; Prudential Financial Inc.; ING Employee Benefits, a subsidiary of ING Groep NV; and MetLife Inc. are among those joining the trend.”

There is a new emerging funeral industry as the traditional funeral business is buckling under economic pressures and life insurance companies  are taking a role in funerals is just a small part of this. Many time times the life insurance company refers to this as end of life services.

Funeral Industry| Funeral Blog by Your Funeral Guy.

Sources:

Details are at the Wall Street Journal online. The life insurance companies always have been closely associated with the funeral industry in that cashing in a life insurance policy is how many funerals are paid for. More information on the Hartford-Everest team up  can be found here.

Wall Street Journal pic from flickr under the creative commons license from

Enrico Fuente’s photostream

“Government Leaders” to Talk in Illinois Funeral Scam.-yourfuneralguy

Illinois Senator Roland Burris(on right) and Government Regulators will give information in a Funeral Scandal Lawsuit

“Depositions are in” in the Calvert  Six Funeral Director Lawsuit against the IFDA. The matter of the lawsuit against the Illinois Funeral Directors “misuse” or theft of  almost 60 Million Dollars will soon be before a Court of Law.

According to the law firm for Calvert Funeral Homes and the other Funeral Directors bringing suit against the

“IFDA:

“Wexler Wallace filed Plaintiffs’ Derivative Complaint on January 28, 2009.  Defendants’ continue to deny responsibility and their responses to the Derivative Complaint are due on April 29, 2009.

Wexler Wallace has issued numerous third-party subpoenas, including a subpoena to U.S. Senator Roland Burris (D-IL) seeking documents relating to the Senator’s issuance of IFDA’s trustee license when he was Comptroller and the Senator’s lobbying activities on behalf of IFDA after he became aware of the Preneed Trust’s deficit.  Wexler Wallace has also issued subpoenas to the Illinois Office of the Comptroller and the Illinois Banking Division of the Department of Financial and Professional Regulation, which are the Illinois governmental agencies charged with overseeing the Preneed Trust.  Wexler Wallace has also subpoenaed the accounting firms that audited the Preneed Trust and other entities that are believed to have information relevant to the lawsuit”

So what does this mean for the IFDA and the Regulators in the State of Illinois? It means that these government leaders who were responsible for Regulation of the IFDA preneed Trust will have to explain themselves and give up  information.

Specifically: United States Senator from ” ILLINOIS”  Senator Roland Burris

State of Illinois Comptroller Dan Hynes.

Officers of the Banking Division of the Illinois Department of Regulation.

Accounting firms and other entities that have audited the  IFDA Preneed Trust.

It is  my contention that both sides area at fault in this situation for failure to do Due Diligence. Check it out

Funeral Industry|Funeral Blog by Your Funeral Guy

Burris wih ex Governor Blagovitch pic from flickr under the creative commons license from

chicagopublicradio ‘s photostream

Wall Street Journal says a quiet No to Funeral Preneed|yourfuneralguy

Wall Street Journal refered folks to NO FUNERAL PRENEED today.

5/2/09-Today the Wall Street Journal referred Americans to the no funeral preneed people, the  Funeral Consumers Alliance. This is a good thing. IF YOU WANT TO COME IN UNDER THE AVERAGE COST OF A  FUNERAL- It is best not to do funeral preneed or prepay a funeral.

In the article today “Planning for your Funeral here is a guide to smart shopping” the WSJ quoted Joshua Slocum.

“Go to funerals.org and click on the tab that says “find a local FCA.” Clicking on “funeral self-help — answers to frequent questions” under the main menu, then scrolling down and clicking on “funeral arrangements,” will pull up a list of publications including “Four-Step Funeral Planning: Where to Start When You Don’t Know How to Start!”

One of the biggest decisions you will face is whether to pay in advance for arrangements you make. Joshua Slocum, the alliance’s executive director, cautions against advance payments. He says many people don’t understand the fine print in their contracts, consumers could lose earnings on money being held in trust by a funeral home, and contracts can get lost.”

What has attracted people to preneed or prepaying a funeral for a generation has been the promise that one can lock in today’s prices for funeral and not have to pay more later.

In this economy this is simply not the case. It is my opinion that “any honest Funeral Director will not sell you Guaranteed Preneed” now. In this fragile economy investments can not be guaranteed now or in the near future.

They certainly cannot guarantee any investment or bank account 5-20 years out.

A Funeral is always a business contract.

As i have said before it is best for the funeral consumer to not do funeral  preneed or prepay a funeral.

The two scandals mentioned at this blog the IFDA Preneed Trust mess (Illinois Funeral Directors Association) and the National Prearranged Services(NPS) scandal alone are reason enough not to prepay a funeral.

In the article the Wall Street Journal said a quiet “No” to funeral preneed.

Funeral industry|funeral blog by your funeral guy.

UPDATE: MAY 3rd 2009 This blog post encourages you to avoid guaranteed preneed, other non guaranteed approaches may be viable. Certainly reputable life insurance is an option.

Your Funeral guy is not affiliated with Joshua Slocum, and is simply pointing out here that the Wall Street Journal has quietly steered the folks away from preneed.

Wall Street Journal pic from flickr under the creative commons license from

Enrico Fuente’s photostream