Pay back 10 million: Order in Illinois Funeral Scandal-YourFuneralGuy

13 May

Illinois Funeral Leaders to pay back 10 million Dollars

Illinois Funeral Leaders to pay back 10 million Dollars

TEN  MILLION DOLLARS TO BE PAID BACK

In the Illinois Funeral Ponzi Scheme where 59 million dollars disappeared., the IFDA has been ordered to payback 10 million.Dollars

The Illinois Funeral Directors Association has been given an ultimatum by the Comptroller of the State of Illinois to payback 10 million This is in regards to excess fees it skimmed from the 300 million Dollar trust fund from 2000 to 2006.

SPRINGFIELD,ILLINOIS STATE JOURNAL REGISTER ARTICLE

Quoting from the posted  May 12th 2009, Springfield, Illinois State Journal Register Article:

“If the IFDA, which is based in Springfield, does not create a plan by June 26 under which the money would be repaid by May 22, 2010, the comptroller’s office will take the matter to court, according to spokeswoman Carol Knowles.”

COMPTROLLERS OFFICE

They improperly took the money, and they need to pay it back,” she said. “We have asked them to contact us and put together a repayment plan, and if they do not do so in a very brief period of time, we intend to take them to court through the attorney general’s office.”- IL Comptroller Spokesperson Carol Knowles

How Are We GOING TO PAY BACK 10 Million Dollars?

How Are We GOING TO PAY BACK 10 Million Dollars?

BLOOMONGTON, ILLINOIS PANTAGRAPH NEWSPAPER

“Marking the latest chapter in a saga that has spawned at least two lawsuits, a proposed new law and a legislative task force, Hynes is demanding the Illinois Funeral Directors Association repay $9.6 million it received in excess of what was allowed by state law.

These excess management fees are a display of greed and a betrayal of the consumer trust that will not be tolerated,” Hynes said in a statement.”  posted May 12th 2009 –Pantagraph Newspaper

Duane Marsh the executive director of the Illinois Funeral directors Association said they would oppose the Comptrollers Statement.

This is not good for the Illinois Funeral Directors Association. There are three lawsuits against the IFDA and their Leaders. There membership is mad and it is renew membership time. The IFDA is collecting dues as this is written. The IFDA is in the middle of electing new leaders.

SPECIFIC FUNERAL LEADERS INVOLVED 2000-2006 Ex- IFDA Presidents:

2000 David McReynolds, Marion -got a 900,000 loan from IFDA Capital, INC-Wilson- McReynolds Funeral Home

2oo1 Randall L Earl, Decatur, IL current National Funeral Directors Associationn (NFDA) Exec. Secretary.

FUNERAL LEADERS INVOLVED

Specific FUNERAL LEADERS INVOLVED

2002, King Sutton, Paris, IL

2003, Jack R. Kynion, Northbrook, Il

2004, Derek S Johnson, Benton, Il

2005, Brent M Davis, Carlinville, Il

2006, Charles S Childs Jr. Chicago, IL

Funds were misappropriated to the Museum Funeral Customs, lobbyists including Illinois Senator  Roland  Burris.

This entire situation is indeed sad  for funeral consumers and funeral Directors in the State of Illinois.

Funeral Industry Funeral Blog by Your Funeral Guy, Funeral Director, Illinois and Virginia

IFDA LOGO FROM E-mails received fom IFDA  List of IFDA presidents from your funeral guy’s Life experience with the IFDA.

These Ex IFDA PRESIDENTS are mentioned here because they are public figures in this scandal and mentioned in three Illinois Lawsuits. If the money is not paid back, it can be called theft or fraud and these men are responsible  PDF: Read the comptroller’s letter to the IFDA



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One Response to “Pay back 10 million: Order in Illinois Funeral Scandal-YourFuneralGuy”

  1. marsellusm710 May 14, 2009 at 6:33 am #

    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. 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.

    Regards,
    MarsellusM710

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