A Michigan resident has stolen more than $1 million from hundreds of people who paid money in advance to secure the funeral arrangements of their loved ones.
Terry Kaufman, the director of Kaufman and Company Funeral Home, pleaded no contest to 39 felony counts involving embezzlement and related charges after running a prepaid funeral scheme, reports MLive.
Prepaid funeral plans are meant to help families cover future funeral costs in advance and avoid unexpected expenses after a loved one dies.
The money is often placed in escrow or tied to specialized insurance policies.
Kaufman sold both types of arrangements.
Authorities say Kaufman received a total of $1,111,165 from victims and note that the funds were diverted for personal use over 10 years. The operation targeted 204 residents, including 55 individuals under county guardianship, and spanned roughly a decade.
Officials discovered the fraud after a ward died and investigators found no escrow deposits or valid insurance policies for the collected payments.
The director accepted funds from the Huron County Public Guardian’s Office totaling more than $218,000, but he did not deposit the funds or buy legitimate insurance policies.
Says Huron County Public Guardian Jacilyn Braun,
“There were many people who trusted him. He was an upstanding member of the community, and he abused his respect from the people and his respect from our office.”
A judge imposed a sentence of at least seven years in prison along with an order to repay approximately $1.1 million, but the recovery of the money remains unlikely.
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