Illinois Funeral Scam- Government vs Association-YourFuneralGuy.

2 Jun
In Illinois Funeral Scam it has come down to the Government verses the Association.

In Illinois Funeral Scam it has come down to the Government verses the Association.

In the Illinois Funeral Directors  Association Scandal it has come down to the  State Government verses the Illinois Funeral Directors Association. This does not place the odds in favor of the  Funeral Directors Association. The Association does look like the bad guy for misappropiating, misusing, stealing, between 59 Million and 100 million dollars.

The Comptroller of the State of Illinois, Dan Hynes has demanded a plan for the IFDA  Services to pay back  almost 10 million  dollars by June 26th 2009 to the IFDA Preneed Trust Fund-(another Obama playbook move: come up with a plan fast). The funds must Come from IFDA Services Inc.

According to the Executive Director the Illinois Funeral Directors Association, Duane Marsh if the comptroller demand stands IFDA Services, Inc will then go bankrupt. From his E- Mail to members last Wednesday:

We have begun consultations with the Comptroller’s Office concerning their charge that IFDA Services, Inc. took excessive fees. In their judgment, IFDA Services, Inc. was limited to fees described in the Funeral or Burial Funds Act. However, throughout the many years the fund has been in existence, we practiced as a corporate fiduciary and stated in an Auditor’s Review that our fees were based on a different definition of earnings. Since there is no definition of earnings in the law, it still remains to be seen if their request has merit. Obviously, the amount they are seeking could drive IFDA Services, Inc. into bankruptcy.”

Sad to say it but the Illinois Comptroller will most likely have his way: Being setup legally as a corporate fiduciary and thinking you are operating as one are too different matters all together.

So the question then becomes can the Illinois  Funeral Directors Association  exist without IFDA Services, Inc?

The Reason I am reporting this scandal to Consumers is here.

Funeral Industry|Funeral Blog by Your Funeral Guy

One Response to “Illinois Funeral Scam- Government vs Association-YourFuneralGuy.”

  1. marsellusm710 June 2, 2009 at 9:12 pm #

    Dear Funeral Guy and Funeral Service Colleagues,

    It has been a while since I’ve commented on the subject matter at hand. I had to have time to “Cool The Engines” (Classic Rock music by Boston). It has taken so much personal self control not to absolutely blow a head gasket over the short-sightedness of our regulators, namely Michael T. McRaith, Acting Secretary of the IL Dept. of Financial and Professional Regulation, and Director of the Division of Insurance (per IDFPR website), and our illustrious Comptroller, Daniel Hynes. These gents seem to believe that having Merrill Lynch settle their debt for $18 million on a $59 million write down is good business, and good enough for the folks who hold contracts. And we wonder why the State of Illinois has nearly a $12 Billion deficit????

    Mr. McRaith in his May 20th press release titled “Illinois Division of Insurance acts to protect 47,000 IFDA Illinois consumers, reaches $18 million resolution with Merrill Lynch Life Agency”
    said and I quote “This stipulation and Consent order ensures that the well-publicized IFDA challenges do not hurt the more than 47,000 Illinois families who prepaid for funerals.” “In addition, this resolution supports hundreds of funeral directors who face financial burdens like many other small businesses.”

    Mr. McRaith, you know nothing about small business because you’ve never owned/operated a small business. Your a damn bureaucrat that doesn’t understand the fallout / repercussions your actions will produce if not stopped by the Federal Court and ordered to pursue further recoupment of assets.

    The press release makes it sound like all account / contract holders are being redeemed. Not so fast. If one does the math you will observe that 18 million divided by 47 thousand equals $382.98 per account. A hell of a payback for accounts written down by hundreds to thousands more that that. By the way, current math indicates that all accounts in the tax-exempt trust face a write-down of 41.7%. When will MLTC be forced to move the monies away from mark to market accounting principles? I believe Merrill lynch has plans to drive the entire trust into the ground to the point it has no value, as payback.

    Now the real kick in the shorts, ONLY THE NON GUARANTEED CONTRACTS ARE COVERED BY THE $18 MILLION SETTLEMENT!!!! Why Mr. McRaith are you not holding Merrill Lynch liable / responsible for ALL the accounts irregardless if the contract states Guaranteed or Non-Guaranteed since ALL the accounts suffered the same write-down???
    As the man with the POWER on the regulatory side of the equation, I believe you have “SOLD OUT” the People of Illinois and the businesses that the People entrusted their monies to who were in turn duped by members of their state association and Merrill Lynch, and exposed to further damage by the Comptroller when he FAILED to listen to his field auditors in 2002 when there was a $10 million deficit discovered. The Trust should have been shut down then.

    I predict that the only people who will do jail time ever on this whole ordeal will be the funeral director whose business folds/fails/etc. and cannot deliver on a contract because of a multitude of accounts coming due and not enough in the accounts to cover merchandise and cash advances at cost. Marshall Hynes and his sidekick Deputy McRaith will be there to make an example out someone before this is all over. Meanwhile, those in the know that were on the IFDA Boards, both regular and executive,walk free along with Mr. Schainker, who only gets a $100,000.00 fine (MAXIMUM ALLOWED UNDER STATE STATUES, HAHAHA, ON MILLIONS MADE IN COMMISSIONS). Where oh GOD is the justice in all of this???

    By the way FuneralGuy, IF we sign our release to the Comptroller’s Office to accept the “Settlement” we also give up the right to seek further damages in court from any Merrill Lynch entity, including Schainker, the State of Illinois, ie the Comptroller. and so forth. If I sound ungreatful for the $18 million, I am. It is pennies on the dollar for what could have been far better settlement.

    Remember my equation a few articles ago about my version of a settlement?
    Merrill Lynch + Bank of America divided by TARP Funds = possible recoupment of $59 million + dollars.
    It isn’t going to come to fruit, but it was a good thought.

    There has been a meeting called in Springfield, IL on Thursday, June 4, 2009 at the IDFPR Bldg. at 11:00a.m. One must RSVP via FAX at 217-524-9033. Hopefully ones rights to free speech will be allowed at this gathering. I understand Mr. McRaith runs these with narrow latitude and intolerance for opposing viewpoints.

    I would like to know if Mr. McRaith is a Ryan or Blago appointee?

    Chao for now,

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