The ongoing Preneed Scandal in Illinois has taken a turn that may effect the financial future of Funeral Directors in Illinois and especially those of former executive Board Members including the current NFDA elected Presitent Randal L. Earl
Board Members of the IFDA may be personally liable for up to 100 million in losses.
The scandal has been going on since 2007 and intimately involves the former Senator Roland Burris(D-IL),
The Fact that some of the many associations losses will not be covered by their association may in fact be a death blow to the Illinois Funeral Association.
A federal judge ruled last week that the insurer for the Illinois Funeral Directors Association would not be responsible for claims resulting from litigation surrounding the association’s beleaguered Master Trust.
In March 2009, Federal Insurance Company, which has provided up to $5 million coverage in business insurance, including coverage for directors and officers of IFDA since 2005, filed suit against IFDA stating it should not have to pay the claims associated with the previous two lawsuits — one in Circuit Court of Kane County and the other by the six funeral directors in Cook County, which alleges mismanagement of the Preneed Trust the fund by IFDA that resulted in millions of dollars in losses. The insurer claimed that IFDA did not notify the company of claims in a timely manner.
In the U.S. District Court for the Northern District of Illinois, Judge Samuel Der-Yeghiayan sided with Federal Insurance Company ruling that IFDA failed to give the firm proper notice of claims against it.
Your Funeral Guy has been covering this since February 2008 along with the State Journal Register in Springfield, Illinios. Extensive coverage of this subject can be found at yourfuneralguy.com and lowercost funeral.com
This indeed may be the final chapter of the current Illinois Funeral Directors Association due to the IFDA Preneed Trust Scandal.
Funeral Industry|Funeral News | Funeral Blog By Your Funeral Guy
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