The directors of Austin based companies have been arrested on the fraud cases with the charge or sales of pre-arranged funeral services. The director’s statement was made public after recovering $600 million damages from the collapse of Missouri based National Prearranged services which said that the 2 companies have partnered each other.
The 2 companies were being closed down by Texas regulators last year after the regulators determined that National Prearranged, one of the biggest sellers of prepaid contracts were not able to meet the obligations. The announcement by Federal Government leads to a secret operation in which the documents of end user were modified upon death which lead to receivership programs proceeding.
The director who served as chief financial officer is accused of deleting names of customer’s beneficiaries from customers which has lead to insertion of company’s name. But after the company became the sole beneficiary the company would be able to convert the customer’s whole life insurance to monthly renewable policies. This company kept the difference between cash value of whole life insurance policy versus the monthly premium of renewable term policy which amounted to around $40 million which are taken from customers policies without their knowledge.
Recently the victims of the company collapse filed a federal lawsuit which was done to recover $600 million. The suit alleges that Cassity family members preyed on consumers and funeral homes which seek to recover missing money.
The fallout from the company has lead to collapse of Texas lawmakers which would change the state law so that the funeral contracts would be more tightly regulated. Along with that the FBI has began investigating three companies’ finances. There are major 3 players who are participating into it which includes IRS Criminal Investigation, U,S Postal Inspection Service, U.S Attorney with assistance from
Missouri attorney.
The director who served as chief financial officer is accused of deleting names of customer’s beneficiaries from customers which has lead to insertion of company’s name. But after the company became the sole beneficiary the company would be able to convert the customer’s whole life insurance to monthly renewable policies. This company kept the difference between cash value of whole life insurance policy versus the monthly premium of renewable term policy which amounted to around $40 million which are taken from customers policies without their knowledge.
Recently the victims of the company collapse filed a federal lawsuit which was done to recover $600 million. The suit alleges that Cassity family members preyed on consumers and funeral homes which seek to recover missing money.
The fallout from the company has lead to collapse of Texas lawmakers which would change the state law so that the funeral contracts would be more tightly regulated. Along with that the FBI has began investigating three companies’ finances. There are major 3 players who are participating into it which includes IRS Criminal Investigation, U,S Postal Inspection Service, U.S Attorney with assistance from
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