Massive Pre-Paid Funeral Scheme Revealed

Sharon Nekol Province, an alleged former officer of NationalPrearranged Services Inc., has pled guilty to the misappropriation of insurancepremiums intended for prearranged funeral contracts in what is one of thelargest frauds ever seen in the Eastern District of Missouri. 

The company had its customers pay a single up-front sum fora prearranged funeral contract.  Insteadof keeping this money in a secure trust or insurance policy, the companyallegedly utilized the money for unauthorized purposes and the personalenrichment of its officers.  This“ponzi-like scheme,” carried on from 1992 to 2008, may have defrauded over150,000 people out of $600 million. 

The FTC warns consumers to do their homework before signingany pre-paid funeral contracts.

See Susanna Kim, Pre-Paid Funeral Service Was ‘Ponzi-LikeScheme,’ Federal Prosecutors Say, ABC News, June 18, 2013.