By Staff
When an elaborate scheme to defraud Michigan consumers of tens of millions of dollars came to light in late 2006, it was the audacity of people like Clayton Smart and Robert Nelms that caught the attention of the Michigan Attorney General.
Both men stand accused of stealing millions from cemeteries in Michigan and funeral homes they bought in several other states.
Thousands of Michiganders lost money they had paid into trust funds – funds intended to ensure the upkeep of cemeteries.
Earlier this month, Cass County prosecutor Victor Fitz charged former Dowagiac funeral director David L. Groner with failure to escrow funeral trust funds, something existing law requires funeral homes in Michigan to do within 30 days of receipt of the funds.
Groner was not only a long-time local funeral director, he was also a regional president in the Michigan Funeral Directors Association, which makes his alleged offenses even more difficult to understand.
The theft from trust funds is the reason that bills are pending in Lansing to protect Michigan consumers from would-be thieves, seeking to line their pockets with money from the trust funds.
The Michigan Cemetery Association fully backs this legislation and has worked diligently with lawmakers and state government for the past 18 months to create effective, meaningful laws.
In recent hearings on the legislation, lawmakers heard testimony that Michigan is one of several states targeted by outsiders because of its weak cemetery laws. Several legislators wanted to know if the proposed legislation would guarantee an end to the theft of cemetery trust funds.
Michigan Cemetery Association members have been advocating all along to strengthen Michigan's laws and eliminate the loopholes that allowed the theft of tens of millions of dollars from perpetual care trust funds.
We should adopt higher accountability standards that will restore trust in an industry that is integral to communities across the state.
Most cemetery owners are law-abiding citizens with deep roots in their community and many are family owned businesses that span generations – and we want to keep serving our families for generations to come.
The Legislature needs to act on the bills to close the loopholes and protect Michigan consumers. At the same time, it will put those who choose to break the law on notice that they will pay a significant price for their actions and give them plenty to think about in jail.