Funerary Fraud Tim Hanna Pleads Guilty to 117 Felonies

Hanna pleads guilty, Orange may seek $350,000, 30 years
(Archived article @ Newsbank)
Chris Cooper ~ Russellville's News-Democrat & Leader ~ 8/4/2006


Tim Hanna of Russellville pled guilty in Logan Circuit Court Tuesday to a total of 117 counts of Class C and Class D felonies.

Hanna was arrested and charged on Feb. 6, 2006 after turning himself into authorities.

The former owner/operator of Memorial Funeral Home in Russellville stole numerous individual's pre-paid funeral funds, completed false interest reports from the Funeral Fund Trust of Kentucky and reported that he had performed funeral services for individuals who had not died yet.

Hanna had taken as much as $10,000 from several individuals and as little as $327. The total of funds taken is estimated in the hundreds of thousands of dollars.

In October 2005, the Kentucky Attorney General's Office (AG) became involved and began an extensive investigation into Hanna's business practices along with the Kentucky State Police and the Logan County Commonwealth Attorney's Office.

The AG's Office had received numerous complaints from individuals who claimed they had pre-paid for funeral costs and the funds were no longer there.

Hanna and his wife Cindy had filed a joint voluntary petition under Chapter 7 (bankruptcy) on July 1, 2005 which the AG's Office opposed.

During the investigation into Hanna's business at least two unidentified cremains were found in the funeral home and one that was marked. This find involved the Logan County Coroner's Office. The cremains with a name on the container were of someone who had already been buried. That grave was exhumed to identify the contents which held ashes. Logan County Coroner Jackie Dunlap had said they may never know whose cremains they were.

Approximately 45 to 50 victims and their families were in court to see Hanna plea Tuesday. Even after Hanna's confession of guilt, victims still sought answers to why anyone would do such a thing.

Commonwealth Attorney Charles Orange says restitution is still being determined in this case but said more than likely Hanna will have to repay close to $350,000. Orange recommend Hanna serve 30 years in jail according to the plea agreement; however, final sentencing isn't until Sept. 1 at 9 a.m. Circuit Court Judge Tyler Gill could choose to either raise or lower the agreement. At the Sept. 1 sentencing, victims will have a chance to voice their opinions on the actions of Hanna.

Hanna is still facing additional charges stemming from his service on the Land of Logan Habitat For Humanity Board of Directors between 2002 and 2003. Hanna was indicted on July 21 and arraigned Tuesday on 15 counts of stealing money from Habitat for Humanity for personal use. Habitat is a nationally known non-profit organization which brings together volunteers to build affordable housing for those in need.

In the funeral home case, Hanna has admitted his guilt. On the Habitat charges, and indictment is not a finding of guilt, but that enough evidence exists to hold a trial. Guilt or innocence may be determined in a court of law.

Russellville Funerary Fraud Charged with Stealing from Habitat for Humanity

Hanna indicted again - Charged with stealing $51,500 from Habitat For Humanity - Hanna served as its treasurer
Chris Cooper ~ News-Democrat & Leader (Russellville, Logan County, KY) ~ 8/1/2006

Tim Hanna, previous owner/operator of Memorial Funeral Home, was indicted by the Logan County Grand Jury on July 21 for 15 counts of Theft by Unlawful Taking over $300.

According to Hannah's indictment, he intentionally took money belonging to the Habitat For Humanity account with intent to convert funds for personal use and to deprive Habitat For Humanity of money. Hanna's counts add up to $51,500. The money was allegedly taken between May 2002 and October 2003. Hanna served Habitat For Humanity as its treasurer. Habitat For Humanity is a nonprofit organization that brings together volunteers to build housing for those in need.

This isn't Hanna's first bout with trouble. He was arrested on Feb. 6, 2006 and charged with 109 counts, ranging from theft by failure to make required disposition of property over $300, violation of trust prevision/preneed payment for funeral service, and forgery 2nd degree.

The February theft charges stem from transactions in which he allegedly took individuals pre-paid funeral funds and failed to turn them into the Funeral Funding Trust of Kentucky.

The forgery charges stem from Hanna's alleged completion of false interest reports from the Funeral Funding Trust of Kentucky on certain individuals. Hanna also allegedly contacted the Funeral Funding Trust of Kentucky and reported that he had performed funeral services for individuals who had not died yet, in order to receive the individual s pre-paid funeral funds himself.