By Karla Sullivan
A Hughes County funeral home director turned himself after an investigation by the Oklahoma Insurance Department’s Anti-Fraud Unit. Donald Williamson is accused of embezzling almost $75,000 from 28 families who set up prepaid funeral trusts.
“We take crimes like this very seriously,” said Oklahoma Insurance Commissioner John D. Doak. “People are very vulnerable when it comes to funeral planning. They need to be able to trust their funeral home workers. I commend the investigators of our Anti-Fraud Unit. They will continue to bring justice to Oklahoma consumers.”
Williamson owns Williamson-Spradlin Funeral Home in Wetumka. He admitted to investigators he accepted money for prepaid funeral trust accounts and deposited the money into a bank account for his funeral home from November 2011 to December 2014. By law, prepaid funeral trust account money should go into a separate trust account and not be used for any other purpose.
On Friday, officials from the Oklahoma Insurance Department will be available to meet with anyone who bought a prepaid funeral trust from the Williamson-Spradlin Funeral Home. Residents are asked to bring prepaid funeral trust paperwork to the City of Wetumka Council Board Room at 202 N. Main anytime between 11 a.m. and 2 p.m. Meetings are confidential.
“Our Anti-Fraud Unit worked closely with the Hughes County District Attorney’s office on this investigation. They have been very helpful to our case and aggressive in bringing Mr. Williamson to justice,” said Rick Wagnon, director of OID’s Anti-Fraud Unit. “We have seen cases like this before. In 2011, a Creek County funeral home director was charged with fraud after a similar investigation.”
Williamson will face felony counts of embezzlement and violations of the Prepaid Funeral Act. He could face up to 10 years in prison and a fine of up to $10,000 per count.
The New York Department of Health offers detailed suggestions on the best way to preplan your funeral and how the money is deposited.
· You can pre-plan WITHOUT paying for it. You can discuss your wishes with a funeral director and complete a plan on file when it is time. Your estate will then have to pay for the services
· You can prepay and the money will be held in the name of the funeral home as trustee for you. You can pay in one lump sum or installments.
· In New York, laws are strict on how the funeral director controls your money but there are no guarantees that you are completely protected from fraud.
· Make sure you always have a pre-need agreement for services.
· The funeral director must deposit your money within 10 days in an interest-bearing account or a government backed investment, such as US Treasury bills.
· The funeral director must notify you where your money has been deposited with in 30 days of the deposit. Also, the location and amount of interest earned will appear on the IRS form 1099-INT (or equivalent) sent to you in January of each year. Check the account information carefully each year. Also, upon your written request, the funeral home must advise you of the total value of your account, including principal and interest.
This is specifically for the state of New York as an example. Various states have laws to help ensure that these advance payments are available to pay for the funeral products and services when they’re needed; however, protections vary widely from state to state. Some state laws require the funeral home or cemetery to place a percentage of the prepayment in a state-regulated trust or to purchase a life insurance policy with the death benefits assigned to the funeral home or cemetery.
