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.
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.
- California Funeral Home-Image via Wikipedia
It is not the exact same scandal as the Illinois Funeral Directors Association(IFDA) Preneed Trust Scandal. But just as in Illinois, problems with the California Master Trust and the California Funeral Directors Association relate back to funeral homes and misuse of Preneed Funds.
SACRAMENTO, Calif.—A California agency plans to discipline about 300 funeral homes after finding the state’s second-largest funeral trust misused millions of dollars.Department of Consumer Affairs spokesman Russ Heimerich said Wednesday that funeral homes could be sent a warning letter or have their licenses revoked. The funeral homes all participate in the California Master Trust.
The trust holds money paid in advance by 27,000 individuals for funeral services, cemetery plots and other expenses.
Heimerich says the department will act against homes in coming weeks because the majority of them failed to say how they would correct problems found in a state audit released in July.
Just a few more reasons to avoid funeral preneed contracts or Prepaying for a Funeral.
Funeral Industry| Funeral News| Funeral Blog by Your Funeral Guy
Folks with Preneed policies at the National Prearranged Services Funeral Home in Missouri may have lost it all. It is a fact that all the monies in prepaid funerals at Washington Forever Funeral Home in Missouri are gone. There is the possiblity that some customers of Washington Forever Funeral Home may get some credits from two area Kansas City Funeral Homes Charter Funerals and Speaks Legacy Chapels, but the details are a bit vague.
It was stated by the Missouri Attorney General that folks who bought a preneed policy at the Independence, Missouri Funeral Home will have to get their funeral somewhere else. The total estimates in the NPS Preneed Funeral Scams are between 600 Million and 1 billion dollars. This is significant enough warning for anyone not to put their funeral cost money into a prepaid funeral
The Missouri attorney general’s office Tuesday issued recommendations for those who purchased prepaid funeral plans from a now-closed Independence funeral home.
Consumers who purchased a plan from Mount Washington Forever Funeral Home will need to make new arrangements at another funeral home, according to the office.
Last week, two Kansas City area funeral homes firms, Charter Funerals and Speaks Family Legacy Chapels, offered to issue possible credits to those customers.
Anyone still paying on such plans purchased through Mount Washington Forever, the attorney general release said, “should stop making payments.”
Funeral Industry|Funeral News Funeral Blog by Your Funeral Guy
Many a Funeral Home and Funeral Corporation will tell you that prepaying a funeral will relieve the Stress of a funeral at the time of your death.
The news about preneed of late shows that this does not work. Often times the Funeral Directors or other preneed professionals simply take your money.The fact that this can occur is additional funeral stress.
This was the case in:
1: the NPS , National Prearranged Services scandal in 2008,2.the Illinois Funeral Directors scandal revealed in 2009.3. The California Funeral Directors Association in 2010
Funeral Preplanning does work. Funeral Prepaying does not. This was conveniently left out of a recent, Dignity Memorial, Service Corporation International, blog post.
An Austin. Texas news station has advised against buying a prepaid funeral as away of Saving on Funeral Cost. Prepaying a Funeral may on the surface sound like a good idea, but recent history has found it to be quite risky.
One Reason it is quite risky is that Funeral Directors lately have been found to take the money.
This has been revealed in three major Funeral Director Scandals.
1. The National Prearranged Services Scandal -2008
2. The Illinois Funeral Directors Association Preneed Ponzi Scheme- 2009
3. The California Funeral Directors Association Scandal(California Master Trust) 2010
On the surface, it seems like a good idea to pay today’s price for final arrangements.
Since funeral prices have been going up by more than the rate of inflation, it might seem like a wise choice to pre-pay for your funeral arrangements.
Unfortunately, the prepaid funeral business, like other industries, is not without its share of fraud and deceit.
The average cost of a funeral in today’s dollars is about $10,000, and that cost is increasing every year, so you can see why consumers in Texas have contracts worth $3 billion.
Funeral Industry|Funeral News| Funeral Blog by Your Funeral Guy
Quietly and for a while now Service Corporation International (NYSE:SCI) has been blogging for Funeral Dollars.
The World’s largest funeral corporation in NC is putting out some interesting blog posts for its funeral homes in NORTH CAROLINA.
Do not be fooled there are lies in there too.
“Snippet From the Dignity North Carolina Blog:
Funeral insurance is usually sold as guaranteed coverage, which means that it cannot be denied to you because of pre existing health conditions the way that life insurance can be.
No funeral insurance (Preneed, Prepaid) can guarantee coverage because no investment in today’s market can be guaranteed. No one can lock in today’s prices anymore. No one can say that will happen.
The absurdity of the statement “it( funeral Insurance) cannot be denied to you because of pre existing health benefits.” This sounds good at first but it is an apple and oranges comparison.
Funeral insurance is a purchase of funeral goods and service that is put into an insurance or other investment vehicle. Life insurance refers to payment of monies upon your death. They are quite different things.
Will the World Largest Funeral Corporation start “STATE BY STATE” Funeral Blogs as it did for it’s Funeral Homes in North Carolina? It is quite possible they have already done this. this tactic is an indication of funeral industry decline, and the declining funeral cost to the consumer.
The recent NPS, Illinois Funeral Directors Association Preneed Scandal and the California Funeral Directors Association Scandal is reason enough to avoid funeral preneed.
Funeral Industry funeral News Funeral Blog by Your Funeral Guy
IF SERVICE CORPORATION INTERNATIONAL Would blog for their Funeral Homes State By State it would sure ramp up Funeral industry competition.