The Illinois Funeral Directors Association has been ordered to pay back 10 million to a funeral preneed trust fund.
Here is a response received from a funeral home owner in Illinois to
Pay back 10 million: Order in Illinois Funeral Scandal-YourFuneralGuy.
The Illinois Funeral Directors Association may have a funeral because of a pre need funeral scam of 59 plus mil dollars..The Comptroller of the State of Illinois ordered the IFDA to pay back 10 million dollars.
Funeral Guy and Friends,
Detrimental news for IFDA. Where oh where will they come up with that kind of cash? Since none of us out here in IFDA that are Members have no idea of what the financial assets of IFDA are, this could be the straw that breaks the camel’s back. But maybe the “boys” have a little stash that we don’t know about. You know, a little bonus money from the trust earnings via the Taxable Trust side of the portfolio.
The real question I have for Mr. Hynes is why his office DID NOT take immediate action to shut the trust down in 2002 when they saw the $10 mil. deficit? And then allowing it to “hemorrhage” to $59 mil. (and accounts continue to do so as we speak, both tax exempt and the taxable trust were told was “safe”).
Folks reading the names of our illustrious past presidents need to understand that the “keyman” policies sold / purchased by Mr Schainker during the 1990’s, these gents would have been seated on the board as regional directors / officers at some point during that time.
Quite frankly, I’m becoming quite sick of seeing the Comptroller grandstanding on the issue with new consumer protection laws being steamrolled through the IL legislature when the the IL Funeral and Burial Funds Act needs a line by line overhaul.
Funeral Directors in the State have been angered at losses in Illinois Funeral Mess because it has had a negative effect on their bottom line.
Never mind what we didn’t do, Lets do something to appease the consumer advocacy folks and win voter confidence for the next round of elections. you gotta love it! You will find no argument from me that the “Act” needs updating, however an absolute catastrophe had to happen before anything was done.
For those of you reading this, the Comptroller wants ALL monies placed with a third party or independent trustee. In IL we get to manage up to $500,000.00 under a trustee license via the Comptrollers’ Office.
That is how the IFDA Trust got to grow to the size it did, because of the “cap”. The problem with this scenario is this. The monies at IFDA Services, Inc., better known as and presumably known to be an Independent Trustee albeit not properly licensed as we came to find out, did injury to the monies it was entrusted with. Those funds managed by us F.D.’s under our Trustee license with monies deposited in local banks went undamaged and held safely, BUT we will lose that right under changes being made to the “Act”.
Here is a suggestion for Mr. Hynes on what should be done with the $10 mil IF he gets if from IFDA. Disperse it to the F.H.’s that incurred damage from the writedowns on funerals that have been performed since last September. That would relieve some of the pain that has been inflicted and absorbed by the F.H.’s. Then by the time the Calvert group gets done with the lawsuit that hopefully will be settled favorable to the funeral trust holders.
The next board of IFDA due to be seated and sworn in next month just might be in charge of making funeral arrangements for our once great association. I’m not sure at this point she can be saved. Arrangements pending?
A tip of the hat to the IFDA Staff for hanging in there during trying times and being assaulted / insulted with all sorts of vulgarity. No quitters that I’m aware of.
I think I’ll place my chips on a FEDERAL GRAND JURY indictment on several players to clear bring the full truth out on this whole mess. Lips are tight when I ask about a FGJ, but nobody denies it either.
Funeral Industry|Funeral CostBlog by Your Funeral Guy.
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