Preneed Funerals : Scandals and Fraud

       
          With the National Prearranged Services (NPS) scandal making headlines over the past few days, I thought it would be an appropriate time to cover. The latest scandal involves a 50-count indictment handed down for several of NPS's top brass. They are accused of embezzlement to the tune of $600 million from the funds paid to them by consumers for preplanned funerals. This is not the first scandal of its kind and I feel safe in assuming it will not be the last. While NPS is located in Missouri, similar scandals have taken place in Illinois, California, Louisiana and other states. It has not only been the preneed companies charged, but funeral homes and funeral directors as well. Unfortunately, preneed companies like NPS not only affect consumers in Missouri, but in the many other states and funeral homes that offer their contracts to consumers.

          My first introduction to NPS came about in my first job as a funeral director. It was a small town, independent funeral home in Texas. A new regional sales manager with NPS stopped by and, along with the funeral home owner, announced that I would be getting my license to sell preneed policies to families. To become licensed, there is a test involved. However, the sales manager and the owner advised me of "the best part." The sales manager handed me a copy of the answer key and the test.

          I took the test and answer key, advising them that I would work on it later, as I had a couple of families to follow-up with. Fortunately, the owner forgot about it and I became more interested in selling cemetery monuments. I left the preneed funeral sales to one of the other employees. Here's the irony. After the NPS  manager stopped by, another funeral director said, "That guy looks familiar, but he is from out-of-town and I just can't place it. Where could I have seen him?" Another funeral director, a female, replied, " Maybe in a mugshot somewhere."