The former President and Chief Financial Officer Of National Prearranged Services was indicted on mail fraud, wire fraud and money laundering. The National Prearranged Services multimillion dollar scheme used insurance to extract millions from the pre-need trust fund. Insurance policies combined with the tools found in every office, white out and cross outs.
Yes the man Randall Sutton directed his staff to white out and cross out to change preneed documents and insurance terms. This was quite effective in exracting millions from people’s funeral funds.
An insurance scheme was also a part pf the Illinois Funeral Directors Pre need Ponzi scheme but the tools were different, key man insurance policies.
The president and CFO of a now-defunct prearranged funeral services company was arrested this morning….Customers who signed applications for life insurance policies and made full payment had their applications altered by NPS employees so that it appeared that they had only partially paid the expenses, prosecutors said. NPS pocketed the difference.
NPS also altered documents to remove the customer or their funeral home as beneficiary of the policies, instead inserting the NPS name.
Then NPS used those policies either to get $65 million in loans without the customers’ knowledge or converted those policies from whole life policies to renewable policies to extract more than $40 million in cash, the indictment claims.
NPS also took money from accounts that was supposed to be invested and backed by insurance policies, and sent fake account statements to funeral homes to cover it up.
Sutton and others at NPS also siphoned off over $50 million through promissory notes, the indictment says.
Sutton did not even keep his state insurance license current. He had his secretary take a test every 2 years to renew his insurance license. The indictment came on Thursday and the arrest came on Friday. This is different from the civil suit filed in Federal Court.
Funeral industry|Funeral Blog by Your Funeral Guy