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Merrill Lynch Pays 18 Mil For Role in ILLINOIS Funeral Scam.-YourFuneralGuy.

20 May

The Merrill Lynch to pay 18 million to a funeral preneed trust fund that lost 59 Plus Million

The Merrill Lynch to pay 18 million to a funeral preneed trust fund that lost 59 Plus Million

Merrill Lynch has agreed to pay 18 million to end a state investigation into their role in Illinois Funeral Directors Scandal. This is according to the Chicago Tribune on Wednesday May 2oth 2009.

Snippet “Merrill Lynch & Co. has agreed to pay $18 million to end a state investigation into its investment services to a troubled trust fund managed by the Illinois Funeral Directors Association, the state insurance division said Wednesday”

Ironically, Merrill Lynch(MLBOT) is the trustee for the IFDA Preneed Trust .

Now this development only causes more questions.

What will happen to the wrong doers who misappropiated funds at the Illinois Funeral Directors Association?

What about the six IFDA EX Presidents of the IFDA listed below who the Comptroller pointed a finger at in Funds Lost from 2000 to 2006. Funds are listed next to the name.

2000 David McReynolds, Marion -[got a $900,000 loan from IFDA Capital, Inc.,}–Wilson- McReynolds Funeral Home (1,235.478.50)

2oo1 Randall L Earl, Decatur, IL current National Funeral Directors Association (NFDA) Exec. Secretary. Brittlinger & Earl Funeral Homes (1,032,658.50)

2002, King Sutton, Paris, IL (697,290.75)

2003, Jack R. Kynion, Northbrook, Il (1,974,620.25)

2004, Derek S Johnson, Benton, Il Hobbs Johnson Funeral Home, Inc (1,903339.50)

2005, Brent M Davis, Carlinville, Il Davis- Anderson Funeral Homes (1,687,o39.50)

2006, Charles S Childs Jr. Chicago, IL A.A. Rayner and Sons1,(143,361.25)

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

What about the role of Illinois Senator Roland Burriss in the mess?

What impact will this have on the IFDA Lawsuits?

Funeral Industry|Funeral Blog by YourFuneral Guy.

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. The Comptroller in this letter  stated the amounts misappropriated by year, the year listed is the IFDA Pres.Year on Record

PDF: Read the comptroller’s letter to the IFDA

Life Insurers offer Funeral Biz Services-Your Funeral Guy.

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

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