Attorney general opposes Hannas' bankruptcy
Tim Turner ~ News-Democrat & Leader (Russellville, Logan County, KY) ~ 10/28/2005
In addition to criminal proceedings now underway against former funeral home director Tim Hanna of Russellville, Kentucky Attorney General Greg Stumbo is also opposing bankruptcy being granted to Hanna and his wife Cindy.
The charges and complaints result from allegations that Tim Hanna accepted preneed funeral arrangement funds from a number of people who now are being told their investment is missing.
The attorney general's office already has 29 complaints filed from affected individuals. In a legal brief, Stumbo estimates the number to be double that (58) with approximately $320,000 involved.
We are investigating Memorial Funeral Home, and its owners/officers Tim and Cindy Hanna, under the civil provisions of the consumer protection statutes, regarding apparent violations of the preneed burial contract trust fund statutes (KRS 367.934-.940)," says Stumbo spokesperson Vicki Glass.
We are cooperating with the Kentucky State Police and Logan Commonwealth Attorney Charles Orange, as they investigate possible criminal violations. At our request, they have also been giving consumer complaint forms to consumers that contact them about this."
The investigation began on Sept. 23 after the attorney general received information indicating that $10,000 paid by a consumer in April 2002 to Memorial Funeral Home (MFH) for a pre-arranged funeral trust contract purchased had not been put into the trust fund as required by the statute.
Stumbo's office began its investigation by sending subpoenas and civil investigative demands to MFH on Sept. 28.
We also sent a subpoena to Funeral Funding Trust of Kentucky that day, and it has cooperated with our investigation and has provided records," Glass says. On Oct. 5, we petitioned the Logan Circuit Court to impound MFH's business records, and the Court granted our request.
So far, we have received 29 consumer complaints. Our investigation is ongoing."
Memorial Funeral Home has been closed for several weeks.
According to the complaint filed through the attorney general's Consumer Protection Division, Tim and Cindy Hanna filed a joint voluntary petition under Chapter 7 on July 1, 2005.
The complaint also says that Memorial Funeral Home was administratively dissolved by the Kentucky Secretary of State two years ago next week, on Nov. 1, 2003, for failure to file its annual report. The last annual report for Memorial was filed March 7, 2002.
On Tuesday of this week, Oct. 25, the attorney general's office filed a Complaint in Tim and Cindy Hanna's personal bankruptcy action in bankruptcy court, Western District of Kentucky, Bowling Green Division, objecting to their discharge from any liability they may personally have in relation to the preneed burial contract payments that were not properly placed or maintained in the required trust account, and interest and earnings thereon, which are trust funds by operation of KRS 367.934.
In a brief opposing granting the bankruptcy, the attorney general's office says: The Division's investigation is onoging, but information received by the Division indicates that the Defendants, or either of them (Tim and Cindy Hanna), violated the trust provisions of KRS 367.932 to 367.974 regarding the preneed burial contracts of approximately 58 consumers, involving over $320,000 in aggregate, over a period of time through Aug. 19, 2005 as follows:
a. Failure to place preneed burial contracts in a trust account.
b. Withdrawal of preneed contract payments that were placed into a trust account, based on the submission of false, misleading, deceptive, forged or fraudulent documents indicating that the consumer had died.
c. Filing false, misleading, deceptive or fraudulent reports with the Attorney General that did not list all preneed burial contracts sold or the full amount of payments thereon.
d. Providing false, misleading, deceptive, forged or fraudulent documents and information to consumers regarding the status of or amounts in their preneed burial contract trust accounts."
The amounts could change as more people file complaints, Stumbo's office says.
To file a formal complaint with the attorney general, people who think they have become a victim should obtain forms from Orange's office on West Fourth Street in Russellville, fill them out and submit them to Stumbo's office.
In the compliant, Stumbo accuses the Hannas of fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny..."
The Defendants' debts in relation to the actions referenced herinabove are non-dischargeable pursuant Sections 532(a)(4) and 523 (c)," the complaint contends.
Assistant Attorney General Kevin Winstead signed the legal document.
The N-D&L has not been informed of any criminal charges having been brought against Cindy Hanna. Tim Hanna was charged and arrested before being released on bond.
Allegations made in a legal action constitute only one side of a case and may be proved or disproved in a court of law.
Friday, October 28, 2005
Friday, October 7, 2005
Russellville Funeral Home Director Arrested for Defrauding Clients, KY Funeral Trust Fund
Funeral home director; Prepaid funeral funds missing
(Archived article @ Newsbank)
Becky Coursey ~ News-Democrat & Leader (Russellville, Logan County, KY) ~ 10/7/2005
Timothy D. Hanna, 46, of Russellville has been arrested by the Kentucky State Police and charged with two counts of Theft by Deception over $300.
He was lodged at the Logan County Detention Center on a $30,000 surety bond set by Logan Circuit Judge Tyler Gill. He was released Wednesday at 1:15 p.m. after a family member, Richard Hanna, put up the bond. Tim Hanna is the owner and mortician of Memorial Funeral Home.
In November 1998, Tim and Cindy Hanna bought Memorial Funeral Home. Cindy's late father had operated a funeral home in Russellville, known as Mayfield Funeral Home, from 1959-1977. Mayfield later became part of Memorial.
Hanna was picked up Monday night in Louisville by the Kentucky State Police and transported to Warren County. Then he was transported by Logan County Sheriff Wallace Whittaker on Tuesday and brought to the Logan County Detention Center.
Allegedly, Hanna was withdrawing money from the Funeral Trust Fund of Kentucky. People paid Hanna for pre-arranged costs of their funeral, which he was supposed to deposit into this fund. In some cases, allegedly, the money never made it into the fund. In other cases, all or part of the money was deposited, but fake death notices were sent to the funeral fund for the money to be withdrawn. People who are alive and perfectly well have found out that they are dead in the eyes of the funeral fund, their money gone.
Charles Orange, Logan-Todd commonwealth attorney, issued the following statement Tuesday:
"Anyone who believes that they or a family member should have a prepaid or prearranged Funeral Fund with Memorial Funeral Home in Russellville may wish to contact directly the trust company listed in the documents provided to determine the status of the trust account. If you have further concerns or have receipts or canceled checks but no trust documents, you may wish to contact Detective Childers at the KSP (Kentucky State Police) in Bowling Green at 270-726-2010, or the Office of the Attorney General of Kentucky at 502-696-5389, or the office of the Commonwealth Attorney, Charles Orange, in Russellville, at 726-4300."
"The Office of the Attorney General has notified the local Commonwealth Attorney's Office that they also are looking into the matter since state law requires each trust account be registered with their office."
"This investigation only concerns prepaid/prearranged funeral plans and trust funds acquired through Memorial Funeral Home in Russellville and does not involve any other funeral home, nor does it involve any of the previous owners and operators of Memorial Funeral Home. It concerns the assets in the prepaid funeral funds only."
A preliminary investigation shows a limited number of individuals have been reported to the trust company as deceased when they are not.
"It appears he (Hanna) received prepaid funeral trust fund money," said Orange. They are currently aware of 18 victims, but there could be many more.
When contacted, Vicki Glass, spokeswoman for Attorney General Greg Stumbo, stated, "I cannot comment on this case as it is part of an ongoing investigation."
A Bowling Green news piece, Russellville Funeral Home Director Arrested, detailed the toll Hanna's crimes have had on some of his victims.
Russellville's Kees Family had a long history with the Hannas, and Tim said he'd be honored to help prepare the body of Sheila Kees' husband when he died of heart failure earlier in the year. Both her husband and father would "probably turn over in [their] grave[s]" to know Hanna would end up stealing about $3,000 of her and her husband's hard-earned money, which they responsibly turned over to a trusted associate without a second thought. The Kees may never even have known about the Kentucky's Funeral Funding Trust or the legal obligations of funeral directors (who worries themselves with such details but industry folks, taphophiles, and seasoned victims?). Sheila doubts she'll ever see her money returned, and feels compelled to deal even with long-time family friends in a cautious manner in the future (not a terrible idea...in fact, I'd say the majority of small claims court judges would overwhelmingly suggest just that...but not the point).
Another victim doubtful of ever seeing her hard-earned money again is Darlene Ferguson, owner of the Hickory Hill Florist shop which Hanna often used.
A Kentucky State Police press release issued out of Bowling Green on October 5 includes some additional details captured in later news articles and blog entries, and specifies Detective Jaman Childers as the lead investigator.
(Archived article @ Newsbank)
Becky Coursey ~ News-Democrat & Leader (Russellville, Logan County, KY) ~ 10/7/2005
Timothy D. Hanna, 46, of Russellville has been arrested by the Kentucky State Police and charged with two counts of Theft by Deception over $300.
He was lodged at the Logan County Detention Center on a $30,000 surety bond set by Logan Circuit Judge Tyler Gill. He was released Wednesday at 1:15 p.m. after a family member, Richard Hanna, put up the bond. Tim Hanna is the owner and mortician of Memorial Funeral Home.
In November 1998, Tim and Cindy Hanna bought Memorial Funeral Home. Cindy's late father had operated a funeral home in Russellville, known as Mayfield Funeral Home, from 1959-1977. Mayfield later became part of Memorial.
Hanna was picked up Monday night in Louisville by the Kentucky State Police and transported to Warren County. Then he was transported by Logan County Sheriff Wallace Whittaker on Tuesday and brought to the Logan County Detention Center.
Allegedly, Hanna was withdrawing money from the Funeral Trust Fund of Kentucky. People paid Hanna for pre-arranged costs of their funeral, which he was supposed to deposit into this fund. In some cases, allegedly, the money never made it into the fund. In other cases, all or part of the money was deposited, but fake death notices were sent to the funeral fund for the money to be withdrawn. People who are alive and perfectly well have found out that they are dead in the eyes of the funeral fund, their money gone.
Charles Orange, Logan-Todd commonwealth attorney, issued the following statement Tuesday:
"Anyone who believes that they or a family member should have a prepaid or prearranged Funeral Fund with Memorial Funeral Home in Russellville may wish to contact directly the trust company listed in the documents provided to determine the status of the trust account. If you have further concerns or have receipts or canceled checks but no trust documents, you may wish to contact Detective Childers at the KSP (Kentucky State Police) in Bowling Green at 270-726-2010, or the Office of the Attorney General of Kentucky at 502-696-5389, or the office of the Commonwealth Attorney, Charles Orange, in Russellville, at 726-4300."
"The Office of the Attorney General has notified the local Commonwealth Attorney's Office that they also are looking into the matter since state law requires each trust account be registered with their office."
"This investigation only concerns prepaid/prearranged funeral plans and trust funds acquired through Memorial Funeral Home in Russellville and does not involve any other funeral home, nor does it involve any of the previous owners and operators of Memorial Funeral Home. It concerns the assets in the prepaid funeral funds only."
A preliminary investigation shows a limited number of individuals have been reported to the trust company as deceased when they are not.
"It appears he (Hanna) received prepaid funeral trust fund money," said Orange. They are currently aware of 18 victims, but there could be many more.
When contacted, Vicki Glass, spokeswoman for Attorney General Greg Stumbo, stated, "I cannot comment on this case as it is part of an ongoing investigation."
A Bowling Green news piece, Russellville Funeral Home Director Arrested, detailed the toll Hanna's crimes have had on some of his victims.
Russellville's Kees Family had a long history with the Hannas, and Tim said he'd be honored to help prepare the body of Sheila Kees' husband when he died of heart failure earlier in the year. Both her husband and father would "probably turn over in [their] grave[s]" to know Hanna would end up stealing about $3,000 of her and her husband's hard-earned money, which they responsibly turned over to a trusted associate without a second thought. The Kees may never even have known about the Kentucky's Funeral Funding Trust or the legal obligations of funeral directors (who worries themselves with such details but industry folks, taphophiles, and seasoned victims?). Sheila doubts she'll ever see her money returned, and feels compelled to deal even with long-time family friends in a cautious manner in the future (not a terrible idea...in fact, I'd say the majority of small claims court judges would overwhelmingly suggest just that...but not the point).
Another victim doubtful of ever seeing her hard-earned money again is Darlene Ferguson, owner of the Hickory Hill Florist shop which Hanna often used.
A Kentucky State Police press release issued out of Bowling Green on October 5 includes some additional details captured in later news articles and blog entries, and specifies Detective Jaman Childers as the lead investigator.
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