As I have previously discussed, some swindlers from the midwest had created something similar to ponzi scheme in a prepaid funeral business called National Prearranged Services. It is estimated that 150,000 people were cheated of as much as $600 million dollars. Sharon Province, a former officer, of the company pled guilty to six counts of mail fruad, wire fraud and misappropriation of insurance proceeds as part of a deal worked out with the U.S. Attorney’s Office in Missouri. She is facing three years in prision. Unfortunetly, these schemes are more common in prepaid funeral services.
Folks considering prepaying for their funeral should consider using a Totten trust. This trust will pay out a beneficiary by your choosing upon your death and the funds in the account will pay your funeral. Have discussions with your family to avoid possibly paying for something that has already been taken care of.
See Eamon Murphy, ‘Ponzi – Like’ Scheme Highlights Risks of Prepaid Funerals, Daily Finance, Jun. 27, 2013.
