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Illinois Small Funeral homes lose authority over Preneed Funds-Your Funeral Guy

2 Nov
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Small Illinois Funeral Homes lost fiduciary Control over their preneed funds

Last week Small funeral homes in Illinois have lost fiduciary authority over their. preneed funds. Funeral Directors are looking for new ways to bring in income and they are considering knowledge basis of services, end of life services, estate planing, grief counseling etc as a new income source.

The small funeral home owners can thank the Illinois Funeral Directors Association through the IFDA Preneed Trust Ponzi scheme for this.

Last week 10/28/2009 the Governor of the State of Illinois amendatory veto applied to Senate Bill SB1692 was passed by the Illinois Legislature. It can be viewed here.

The funeral homes will have to find a trustee for their  preneed funds in 2010.

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Illinois Funeral Directors File Lawsuits Against Comptroller-yourfuneralguy

23 Jul

Illinois Funeral Directors are suing various arms of the State of Illinois, IFDA, and Merrill Lynch.

Illinois Funeral Directors are suing various arms of the State of Illinois, IFDA, and Merrill Lynch.

Illinois Funeral Directors who are suing the IFDA(Illinois funeral directors Association)  for losses coming close to 100 million dollars in the IFDA preneed trust fund are now suing the regulator, the Comptroller of the State of Illinois and others.

The Plaintiffs are suing State comptroller Dan Hynes, Division of Insurance head Michael McRaith,  and Merrill Lynch, the IFDA’s former financial advisor and current trustee of the IFDA preneed trust.

This is the original Lawsuit: View Here Amended Derivative Complaint

Calvert Funeral Homes, et al. v. Robert W. Ninker, et al.
Case No. 09 CH 03624 (Cook County, IL)

This is the lawsuit against the Comptroller and other regulators and Merrill View here Declaratory Judgement

Fred C. Dames Funeral Homes, Inc., et al. v. Daniel W. Hynes, et al.
Case No. 09 CH 21989 (Cook County, IL)

This lawsuit against Merrill Lynch: View here Jury Trial

Clancy-Gernon Funeral Homes, Inc., et al v. Merrill Lynch, Pierce, Fenner & Smith, Inc., et al
Case No. 09 CH 20736 (Cook County, IL)

From the Illinois Senate Press:

“Funeral directors have filed another lawsuit related to a failed pre-need funeral trust fund once administered by the Illinois Funeral Directors Association…..

In the lawsuit, filed in Cook County July 7, funeral directors are asking a judge to nullify provisions in a settlement agreement between the Department of Insurance and Merrill Lynch, which agreed to pay an $18 million fine but admitted no wrongdoing.

The money is supposed to go to funeral directors who must first sign documents releasing Merrill Lynch from liability.”

THE LAWSUIT PILE ON FOR THE CONSUMER MEANS MORE FUNERAL COSTS.

All the parties feel they are justified in their actions, but you the consumer loose.

Funeral Industry, Funeral blog by Your Funeral guy

Your Funeral Guy

Illinois Task Force will Hold IFDA Leaders accountable-yourfuneralguy

16 Jul
The State of Illinois has established a task force to investigate the Illinois Funeral Directors Association

The State of Illinois has established a task force to investigate the Illinois Funeral Directors Association

The Illinois Task Force on the Illinois funeral Directors Association will hold the troubled association’s leadership accountable by the end of 2009.

The Illinois Funeral Directors Association declared a $59 million dollar loss in 2008. 2009 estimates put the IFDA Preneed trust losses in 2009  to be 100 million.

The losses to Funeral Directors in the State of Illinois cannot be measured.

Funeral Directors in the State are covering their losses in the IFDA Preneed Trust. They are quite upset with the IFDA and the regulator, the Comptroller of the State of Illinois.

The IFDA thought they had a gentleman’s agreement with the Comptroller in the State of Illinois. They did not and they have recently  the comptroller’s office. suing the State of Illinois cannot be a wise course.

From the IllinoisIssuesblog

{IL REP.Dan}Brady, who sponsored the resolution that created the task force, said that the group’s goals include holding accountable whoever is responsible for the problems with the trust and creating a comprehensive reform package that addresses problems in all areas of pre-need funeral sales.

With all the negative attention on the trust, Brady said that he hopes reforms could help get it back on solid ground. “When you have a multifaceted problem like that, you have a consumer that is becoming very suspicious and skeptical when all they have been told over the last several years is that the whole idea is piece of mind.”

The task force must submit the report to the governor by the end of the year.

WAITING TO HOLD THOSE RESPONSIBLE TO THE END OF THE YEAR IS NOT SWIFT, OR FAIR JUSTICE.

We do not need to wait for the Judgement of the Illinois House Funeral and Burial Prearrangement Task Force to go after the leaders of the Illinois Funeral Directors Association who are responsible for the preneed disaster.

Funeral Industry|Funeral blog by Your Funeral Guy

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update on Illinois Funeral Directors Lawsuits-YourFuneralGuy

19 May
FUNERAL DIRECTORS ASSOCIATION IN ILLINOIS LOST 59 Million

FUNERAL DIRECTORS ASSOCIATION IN ILLINOIS LOST 59 Million

The Illinois Funeral Directors Association Lost 59+ million Dollars in a  Preneed Trust Ponzi Scheme. There are three lawsuits in this matter. Here is an update on the status of the Lawsuits from the IFDA’s perspective.

Last week the Executive director of the IFDA spoke up on the Illinois Funeral Directors Association Lawsuits.Duane Marsh Executive Director of the IFDA said that in the class action Lawsuit against the IFDA  by two women there is a motion to dismiss, he has been saying this for several weeks now.

In the Six Funeral Directors Lawsuit led bt Calvert Funeral Homes, Marsh said that negotiations are proceeding but going slowly.

In the Insurer lawsuit Marsh stated that in the Insurers lawsuit a brief has been filed. The Insurer of the Illinois Funeral Directors Association is seeking not to pay damages or legal fees in the Illinois Funeral Directors Association Lawsuits because of policy non compliance by th IFDA. Marsh also made a  Statement  on Comptroller of  the State of Illinois Dan Hynes.

Summary:

The Illinois Comptroller has demanded that the IFDA return to the IFDA Preneed Trust 10 million dollars in misappropriated Management Fees.

What all this means is there will be no LEGAL RESOLUTIONS to THE IFDA PRENEED PONZI SCHEME SOON.

This means there will be no immediate changes  Illinois Funeral Directors or Consumers Soon.

Funeral Industry|Funeral Industry Blog by Your Funeral Guy

Source: E- Mail from the IFDA, Executive Directors Statement.

Image-Source e-mail from IFDA

Illinois Funeral Task Force- Sad:Politics as Usual-YourFuneral Guy.

7 May

My hopes for reform in the Illinois Funeral Directors Association Preneed Ponzi Scheme were dashed upon the rocks yesterday. Mr Duane Marsh Executive Director of the IFDA has said in several Newspapers articles that the IFDA is behind the Legislative Task Force.

The Light Bulb went off in my head Yesterday when I received an e-mail from the IFDA.

“IFDA E-News Bulletin
May 6, 2009We have supported HR0177, which creates a task force to investigate preneed in Illinois, and specifically the IFDA Preneed Trust. We hope this new bill will not dilute the gathering of further information to insure all areas of concern are examined.”

The Aha moment:

The Legislators in the House of Representatives who are appointing the majority of the  task force are folks who the IFDA has  lobbied and donated money to for years. A full overview of the IFDA Preneed Ponzi scheme suggest the Lobbying and donation money came from the IFDA Preneed Trust.

Since 1996, the IFDA and its political action committee have contributed nearly $263,500 to politicians and political parties. Nearly $98,000 of those contributions took place after June 2006, when the comptroller’s office sent the warning letter to the IFDA.

Illinois Funeral Task Force investigating IFDA Ponzi Scheme turns out to be politics usual.

Illinois Funeral Task Force investigating IFDA Ponzi Scheme turns out to be politics as usual.

Here is how it breaks down:

3 members appointed by the Speaker of the House of Representatives.

Michael Madigan received campaign funds from the IFDA  PAC according to the Springfield, Il State Journal Register article:

House Speaker Michael Madigan has been among the group’s biggest beneficiaries, collecting $16,000 in contributions, twice what he collected from the IFDA and its political action committee during the previous decade.

3 members appointed by the Minority leader of the House of Representatives.

Republican Tom Cross (minority leader since 2002)

1 member appointed by the State Comptroller

1 member appointed by the Director of the Cemetery and  Burial Trust Division of the Illinois Comptrollers office.

1 member appointed by the Director of the Division of Insurance within the Department of Financial and Professional Regulation.

1 member appointed by the Secretary of the Department of Professional Regulation.

Doing the Math.

CONCLUSION: THE MAJORITY OF THE IFDA INVESTIGATION TASK FORCE WILL BE APPOINTED BY TWO or more POLITICIANS and Administrators  WHO THE IFDA LOBBIED FOR YEARS!

The lobbyists:  Tom Cullen and  Illinois Senator Roland Burris.

Funeral Industry|Funeral Cost Blog By Your Funeral Guy-R.Brian Burkhardt

Revealed|Preneed Law Proposed in Illinois Funeral Scam-YourFuneralGuy

1 May
The Illinois Funeral Directors Association had a Scandal Where 59 Million of the Folks money disappeared!

The Illinois Funeral Directors Association had a Scandal Where 59 Million of the Folks money disappeared!

News- May 1st, 2009 It has been revealed that a new preneed law has been proposed in the Illinois Funeral Directors Association(IFDA) Scandal. Hopefully the new Law will protect peoples funeral money who choose to put  dollars into prepaid funerals.

The Illinois Funeral Directors Association lost 59 Million plus in a ponzi scheme involving insurance. The funeral funds went to high IFDA salaries, loans to board members, a funeral museum that failed, and other things still under investigation.

This was all revealed in a press release by the Illinos by the Illinois Comptroller Dan Hynes yesterday

“”SPRINGFIELD, IL — Comptroller Dan Hynes is proposing stronger regulations to protect consumer investments used to pay for funeral and cemetery goods and services.”

” Hynes said the legislation (SB1682) is needed to help prevent shortfalls similar to the one that occurred with a trust fund intended to pay for consumer funerals that was used by hundreds of funeral directors and administered by the Illinois Funeral Directors Association”

The Springfield, Illinois Newspaper the State Journal Register summed up the bill in an article today.

“Under the bill, which is sponsored in the General Assembly by Sen. Deanna Demuzio, D-Carlinville, pre-need funeral trust funds would have to be managed by corporate fiduciaries. The bill would also establish a consumer protection fund built from $5 fees taken from each pre-need funeral contract sold. The money would be used to pay restitution to consumers if funeral homes don’t live up to their end of deals.”

Sadly this scandal has spread to the National Funeral Directors Association(NFDA). Funds were misused by the current NFDA executive Secretary, Randall L Earl,  when he was IFDA President in 2oo1.(10.6 million loss). He also continued to misuse funeral folks funds in management of the IFDA’s Museum of Funeral Customs. NFDA Executive Secretary Earl has refused to step down. He has been named in three lawsuits.

The Leadership of the NFDA refuses to let go of Randall L Earl. It would be good to let him leave before more of this mess is revealed.

Because of all this in the end there is lack of trust for funeral directors, the IFDA and the NFDA.

Funeral|Funeral Industry blog by Your Funeral Guy

Revealed|Dan Brady Funeral Director,Preneed Reformer|yourfuneral guy

25 Apr

Illinois has ah an Historic Funeral Fund Trust Scandal 59 Million was lost and 8.6 Million was illegally talken for Management Fees.

Illinois has ah an Historic Funeral Fund Trust Scandal 59 Million was lost and 8.6 Million was illegally talken for Management Fees.

Now IL.Rep Dan Brady, has been revealed as “Funeral Insider” who has moved to Reformer in the Historic Illinois Funeral Directors Preneed Scandal . Funeral Insider and State Representative Dan Brady has become somewhat of a hero. going  from IFDA Insider to the leading preneed reformer in Illinois.

Brady is the lead guy and sponsor of House Resolution 177  This is the bill  that created the  Funeral and Burial Pre-Arrangement Investigation Task Force. This bill was past by in a  Unanimous Vote  in The Illinois House this past Wednesday. This task force will investigate  the Loss of 59 million included  8.6 million in management illegally taken. The  IFDA Preneed Trust scandal was an active ponzi scheme. Calvert Funeral Homes is the lead funeral home in the Six Funeral Director lawsuit against the Illinois Funeral Directors Association making a legal claim for all this.

“Snippet” from the Pantagraph.com:

“A key figure in a legislative probe into problems within Illinois’ funeral industry was himself once active in the organization he now wants to ivestigate.
State Rep. Dan Brady, a Bloomington Republican, was a member of the Illinois Funeral Directors Association in the late 1980s and served on one of its committees.”

In Blogs in summer 2008  about the  IFDA Scandal Your Funeral Guy treated him as a key player in the Ponzi Scam.

The pantagraph in Bloomington, IL has finally repoted on their two hometown players in the Historic Funeral Preneed Scandal in Illinois.

The Pantagraph newspaper in Bloomington, IL has finally repoted on their two hometown players in the Historic Funeral Preneed Scandal in Illinois.

Now  Brady has distanced himself from the Illinois Funeral Directors Association and  become the lead guy calling for  preened reform. Rep. Brady has taken decisive action to put preneed reform in place in Illinois.

The Pantagraph News Organization has mentioned the home town players, Dan Brady and Calvert Funeral Homes in the Historic IFDA Preneed Trust Ponzi Scheme.

Funeral Industry|Funeralblog by Your Funeral Guy.

Source: Pantagraph.com