California Funeral Directors Association Scandal similar to Illinois-YourFuneralGuy

9 Jul

The similarity between the California Funeral Directors Association and the Illinois Funeral Directors Association seem to Go on on and on.

In California and Illinois the value of the trust Fund was inflated so that those holding the trust could take/make more money out of the fund.

In each case the Funeral Directors Association in Illinois and California misappropiated the folks funeral Funds for lobbying, conventions and other projects.

In each case the lawyers on both sides disagree as to the facts.

The audit also found the trust failed to pay at least $1.6 million it owed to consumers, their estates or the state treasury in cases where funeral homes went out of business or families paid for funeral services because they didn’t know their loved one had a prepaid plan.

The audit found that $4.2 million was improperly spent on administrative fees for the participating funeral establishments over eight years. The trust improperly inflated its income in 2001 and 2002 so it could pay $4.8 million in administration fees to the fund’s trustee, Comerica Bank, and Funeral Directors Service Corp., which administered the fund, the audit found.

The department also has ordered the funeral homes and trust administrators to make up for lost investment income from money that was siphoned away from the trust.

In a joint letter, attorneys for the fund trustee and fund administrator disputed many of the report’s findings. They called them “factually and legally inaccurate.”

The attorneys said the trust always intended to follow state law and regulations.


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


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