ST. LOUIS MO July 10 2013 - The ex-president of a Clayton-based company that sold pre-arranged funerals admitted to participating in a scheme involving the sale of funeral contracts and misappropriation of insurance premiums, U.S. Attorney Richard Callahan said.
In November 2010, the U.S. Attorney's Office announced a 50-count indictment against six officers of National Prearranged Services, Inc. Federal prosecutors said they cheated customers in 10 states out of a combined $600 million.
The 108-page indictment claimed the people who ran National Prearranged Services spent the money families paid for their funerals, leaving funeral homes and taxpayers were left to foot the bill for NPS services.
The names of those listed in the indicted were: Brent Cassity, James Cassity, Sharon Province, Randall Sutton, Howard Wittner and David Wulf.
Prosecutors believe the defendants used the company like a personal piggy bank, spending money people pre-paid for funerals on things like residential real estate, and even personal expenses.
Between 1981 and 2008, Randall Sutton, 67, held the titles of chief financial officer, director, and president of National Prearranged Services; vice president, chief executive officer, and director of Lincoln Memorial Life Insurance Company; and vice president and director of Memorial Service Life Insurance Company.
Sutton pleaded guilty to one count of bank fraud, one count of mail fraud, one count of money laundering, and one count of misappropriation of an insurance premium. He faces up to 84 months in federal prison when he's sentenced on November 7.
Last week, two of Sutton's co-defedants, James Cassity and his son Brent Cassity, pleaded guilty to participating in the same scheme. They will also be sentenced on November 7. Another co-defedant, Sharon Province, pleaded guilty last month. Howard Wittner and David Wulf are slated to appear for trial beginning August 5.
Source: KSDK
In November 2010, the U.S. Attorney's Office announced a 50-count indictment against six officers of National Prearranged Services, Inc. Federal prosecutors said they cheated customers in 10 states out of a combined $600 million.
The 108-page indictment claimed the people who ran National Prearranged Services spent the money families paid for their funerals, leaving funeral homes and taxpayers were left to foot the bill for NPS services.
The names of those listed in the indicted were: Brent Cassity, James Cassity, Sharon Province, Randall Sutton, Howard Wittner and David Wulf.
Prosecutors believe the defendants used the company like a personal piggy bank, spending money people pre-paid for funerals on things like residential real estate, and even personal expenses.
Between 1981 and 2008, Randall Sutton, 67, held the titles of chief financial officer, director, and president of National Prearranged Services; vice president, chief executive officer, and director of Lincoln Memorial Life Insurance Company; and vice president and director of Memorial Service Life Insurance Company.
Sutton pleaded guilty to one count of bank fraud, one count of mail fraud, one count of money laundering, and one count of misappropriation of an insurance premium. He faces up to 84 months in federal prison when he's sentenced on November 7.
Last week, two of Sutton's co-defedants, James Cassity and his son Brent Cassity, pleaded guilty to participating in the same scheme. They will also be sentenced on November 7. Another co-defedant, Sharon Province, pleaded guilty last month. Howard Wittner and David Wulf are slated to appear for trial beginning August 5.
Source: KSDK