National Prearranged Services Preneed Contracts, and the NPS National Prearranged Lawsuit has closed down a Funeral Home. The Main tool in this fraud was white out. It’s all about Mount Washington National Forever Funeral Home in Independence, MO.
It is very interesting to note that the NPS, National Prearranged Funeral Scandal all had to do with a bottle of White OUT! Read more on that by clicking here:
Although the lawsuit is for 600 Million USD estimates of the NPS Scam
The funeral home was receiving no money to try and fund pre-need contracts that families had with a company previously managing the home, said Duke Radovich, chief executive officer of Charter.
Pre-need burial and funeral services involve a pre-payment by the customer in exchange for the promise that funeral services will be provided at no further cost when the customer dies.
National Prearranged Services went to different funeral homes, offering to sell prearranged funeral services and to manage the money from the pre-need contracts.
The problem was that National Prearranged Services was sued in federal court for $600 million, alleging the company preyed on consumers and funeral homes to perpetuate a multi-million dollar, nationwide scheme from the sale of pre-need contracts.
The suit looks to recover costs expended by plaintiffs and seven state insurance guaranty companies.
Funeral Industry, Funeral News Funeral Blog by Your Funeral Guy
National Prearranged Services pulled off their frauds with Life Insurance policies.
The National Prearranged Services Scam, will cost between 600 million and 1.6 billion dollars according to different estimates. It is by far the largest funeral Scam in the nations history.The indictments will continue finding their way to the founding Cassidy Family(owners). This preneed insurance scandal went on for decades.
The tragedy here is three fold. 1)Funeral directors have to complete paperwork to get paid for these contracts from State Assurance Guaranty Agencies. Sometimes the reimbursement is not complete. 2)This is a massive taxpayer expense to pay on these contracts. These Costs get passed on to the consumer and the cost of traditional Funerals is raised.
And (3) The distrust of Funeral Directors and the Funeral Industry multiplies exponentially.
From St. Louis:
In August, NPS chief financial officer and director Randall Sutton, 63, of Chesterfield, was indicted on mail fraud, money laundering, and wire fraud charges.
Thursday, Sharon Nekol Province, 65 of Ballwin, was charged in a superseding indictment with five felony counts of mail fraud.
Province was president and office manager of NPS and held a position with an affiliated company.
NPS marketed the prepaid contracts as a way for consumers to ensure that they would not burden heirs with the cost of their funerals. The price they paid for a contract was used to fund a life insurance policy that would pay the actual funeral costs. But the indictment says that company executives and others knew as far back as 1998 that the anticipated costs were exceeding the anticipated insurance income by $98 million.
Funeral Industry|Funeral blog by Your Funeral Guy.
The owners of National Prearranged Services (NPS) are facing a Federal Lawsuit for 600 million dollars. The 150,000 funeral accounts are estimated to be worth over 1 billion dollars. The Cassity family based in Missouri were the owners of National Prearranged Services.
State Insurance Guarranty Programs have been paying for these funerals. The lawsuit wants recovery of funds spent by seven states paying for the funerals through insurance guaranty, including Illinois and Missouri.
The Missouri Scandal is perhaps the largest pre-need, prepaid, pre-arrangement insurance scams in the United States.
More on this here:
Funeral Guy Used White Out in multimilion$$ Funeral Crime-YourFuneralGuy
It serves as a strong warning to the consumer: Do not pay for a funeral in advance. This scandal alone is reason not to have peace of mind about it.
This will help you come in under the average cost of a funeral.
“A federal lawsuit was filed alleging the Cassity family of St. Louis “preyed on consumers and funeral homes to perpetuate a multimillion-dollar, nationwide scheme from the sale of ‘pre-need’ funeral services and merchandise.”
The suit seeks to recover costs expended by the plaintiffs — seven state insurance guaranty companies, including in Missouri and Illinois, which have stepped into the void to honor most of the pre-need contracts.”
Funeral industry|Funeral Blog by Your Funeral Guy