Tag Archives: fraud

Former Funeral Director charged with Defrauding-YourFuneralGuy

17 Jan
NEW YORK - NOVEMBER 20:  Funeral director Pete...
Image by Getty Images via @daylife

A former Funeral Director in Michigan has been charged with defrauding Customers. In this case The director not only hurt the families that bought preneed or prepaid policies he also hurt the former business owner of the Funeral Home.

This serves as a warning to those who want to exit the funeral industry and the need to check out who and how they dispose of their business.

Mr. Prochnow had purchased the business portion of the Bennett Funeral Home on S. Dixie Hwy. just south of Albain Rd. in 2006 from Darrell Bennett, who retired with his wife to Florida after selling the business.
But Mr. Bennett, now 78 years old, said monthly payments were not paid and he discovered other payments for services were ignored. Over the past several years, he said he personally lost a total of about $325,000 to bad business. When he returned from Florida this summer to take over operations, the company was in shambles.
Mr. Bennett said the building was not properly cared for — there wasn’t hot water — and the vehicles, including the hearse and limousine, were being repossessed though he had paid them off 10 to 15 years ago.
“I can never imagine anything of this magnitude ever happening,” Mr. Bennett said. “It’s put me in the biggest hole I’ve ever been in my lifetime.”
In addition to accusations of stealing money from Mr. Bennett, Mr. Prochnow has been charged with accepting prepaid funeral payments and using the money for his own benefit.

via www.monroenews.com

This shows that just taking a bank note may not be the best strategy, may not be the best strategy in exiting the funeral business- in an age of Funeral industry decline, when profits are down and cremation is on the rise.

Funeral industry| Funeral News | funeral blog by Your Funeral Guy

This article presents one more reason as to why one should not purchase funeral preneed or aprepaid funeral.

Enhanced by Zemanta

National Prearranged Services Executives Indicted-Your Funeral Guy

23 Nov
Map of the St. Louis Metropolitan Statistical Area
Image via Wikipedia

National Prearranged Services  (NPS) Executives have been indicted. These are responsible for 600-100 million dollars of preneed insurance funds.

ST. LOUIS | Officers at a prearranged funeral business defrauded customers, funeral homes and states out of as much as $600 million, according to a 50-count federal indictment announced Monday.

The U.S. attorney’s office in St. Louis announced indictment on fraud, money laundering, conspiracy and other charges against Randall Sutton, 65; Sharon Nekol Province, 66; Doug Cassity, 64; his son Brent Douglas Cassity, 43; Howard Wittner, 73; and David Wulf, 58.

All six defendants are from St. Louis County, and all were controlling officers for National Prearranged Services Inc., based in Clayton.

Brent Cassity is listed in the Missouri secretary of state’s office as the owner of Mount Washington Forever Funeral Home in Independence, which closed in July.

via www.kansascity.com

This is an incriminate story preneed  funeral theft and fraud. Incredibly the main tool in this incredible insurance theft were bottles of white out.

Officers of this company are now part of the criminal Lawsuit.

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

Enhanced by Zemanta

Fake Funerals Lady, yielded 1.2 million, Found guilty-YourFuneralGuy

4 Aug
Grave awaiting its coffin.
Image via Wikipedia

The fake Funeral Lady who yielded 1.2 million  By faking death certificates and  insurances policies was found guilty funerals was found guilty.  She put a mannequin and cow parts in a casket and even faked a burial. The 67 year old woman  guilty of all this will be sentenced  in November. Staged living funerals , and mock Funerals have been

A former Los Angeles mortuary employee has been convicted of defrauding insurers out of $1.2 million by faking several deaths, and staging at least one phony funeral.

Prosecutors say 67-year-old Jean Crump and three accomplices faked death certificates, took out bogus insurance policies, and in at least one case purchased a burial plot, buried an empty casket and staged a funeral.

The U.S. attorney’s office says that when insurers investigated, Crump and her cohorts exhumed the coffin, filled it with a mannequin and cow parts and cremated it to try to cover their tracks.

Authorities said Monday that Crump was found guilty of two counts of wire fraud and one count of mail fraud.

via www.cbsnews.com

This one  odd funeral scheme that  has come to light.

Funeral Industry|Funeral Industry| Funeral News funeral blog by your funeral guy

NPS “Preneed” Court-YourFuneralGuy

16 Jul

National Prearranged Services(NPS) is back  in court over  Funeral Fraud  in the amount 600 million dollars. At issue is a court injunction and the owners spending the funds they received from the Fraudulent Preneed Contracts.

State insurance Guaranty associations who have guaranteed the the  funeral funds to the consumers have brought the lawsuit against the  owners.

At issue is whether spending of funds that can be recovered will be curtailed.

National Prearranged Services back in Court

The topic in the federal courtroom on Wednesday was money, specifically what happened to $600 million and whether a federal judge should be watchful to make sure even more money doesn’t go missing.

No one disputes that the money is gone,” attorney Daniel Reilly told the federal judge. “But the defendants never say where that money went.”

The defendants in this case were the Cassity family, owners of a once-celebrated funeral services company in Clayton and a web of affiliated companies. They ran National Prearranged Services and Forever Enterprises, plus two life insurance companies.

via www.stltoday.com

Do not put your funeral cost funds at risk do not do Funeral Preneed,

Some estimates put total losses at 1 billion not 600 million.

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

WSJ:Preneed, Prepaid Funeral Regulation Ahead|YourFuneralGuy

22 May

Preneed or Prepaid Funerals go by many names such as  End of life insurance, funeral insurance, preneed, prepaid funerals etc. The National Prearranged Services(NPS) Funeral Scam, the IFDA(Illinois Funreral Directors Association) Preneed Trust Funeral Scam, and Weekly incidents of funeral directors running off   with the folks funeral money has all contributed to this development

Snippet From the WSJ.

It’s among the best-intentioned and—in the eyes of some—worst investments that people make: paying in advance for a funeral.

Now, in the wake of recent allegations of fraud and mismanagement in this multibillion-dollar industry, state and federal lawmakers are trying to crack down on abuses in so-called prepaid funeral plans.

“Consumer advocates have been urging states to enact stricter regulations of prepaid plans for years,” says Sally Hurme, a senior project manager who specializes in consumer education at AARP, the Washington-based advocacy group. “This is a step in the right direction.”

via online.wsj.com

This should shoot an arrow in the heart of those who have  have participated in  preneed irregularities, fraud and scams

Funeral industry|Funeral News|Funeral blog by Your Funeral Guy

Think Twice about cremating your Pet|Your Funeral Guy

11 May

Is Pet cremation a fraud? Well it may be. Are the ashes in your pet urn from your dog or pet? Or is just ashes from a bunch of pets thrown together?

A little known fact is that Pet Cremation and Pet Burial is an an unregulated industry. There essentially are no rules no folks keeping these people honest.

If you do a pet cremation it is very important to determine if the pet is cremated individually or in a group cremation.

Now a few months later my brother’s girlfriend got a job at a different vet clinic and found out that the dogs that are cremated is all a bunch of strays and anyone who wants their dog cremated thrown together in a big fire. Then they divy up the ashes, but of all the dogs together! The ashes in the urn might not even be my dog at all! The vet clinic told her that it is common practice NOT to tell owners that their dog is burned with other dogs. Me and my fiancee were appaled when we found this out. Our dog was a member of our family and now we don’t even know if those are even any of her ashes. I understand if they burn dogs together for efficency or whatever, but they should tell the owners the truth. I NEVER would have gone for the cremation if I had known that our dog was going to be treated like garbag

via www.komonews.com

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

Organ donation, Cremation Company sent Body Parts to Medical Waste Facility!-yourfuneralguy

5 Apr

Body Parts Were sent to a Medical waste Company, not cremated as agreed.

Incredibly a organ donation company sent body parts illegally from New Mexico to a waste disposal facility in Kansas City. The  owner of Organ Donation Company Bio Care was recently arrested on Felony charges. Cremations were not performed as agreed. This is cremation fraud.

Apr 03, 2010 (Albuquerque Journal – McClatchy-Tribune Information Services) —

Investigators are exploring a theory that Paul Montano shipped human remains to a Kansas medical waste disposal company as a way of cutting business costs, police said Friday.

With the cost of cremating a body ranging from $600 to $1,800, Montano and his firm, Bio Care Inc., could have cut costs by sending some of the remains to Stericycle Inc., a medical waste disposal firm, said APD spokeswoman Nadine Hamby.

“He could have saved money by cremating only some of the bodies,” Hamby said. “He had to pay to cremate the bodies, so that could have been a motive.”

Police arrested Montano, 31, on three counts of felony fraud Wednesday after human remains, including seven heads and torsos, turned up at the Stericycle plant in Kansas City.

via www.tradingmarkets.com

Click Here to view a Video on this Scandal

Funeral Industry|Funeral News| Funeral blog by R. Brian Burkhardt|Your Funeral Guy