Green Acres burials halted by state
Published 12:00 am Monday, February 16, 2009
State regulators have formally asked that burials be halted at Green Acres Memorial Park after today while officials keep trying to track money missing from its pre-need trust account, a pair of local funeral directors confirmed this morning.
To contact the Secretary of State’s office about a claim, clilck here
“It’s what we’ve expected,” said Charles Riles of Riles Funeral Home, adding meetings with other funeral directors were in the works to decide what to do.
“I hope the secretary of state will provide (pre-need services) at a reduced rate,” said John Kamman of Glenwood Funeral Home, which is located near the commercial cemetery but has no operational or ownership interests.
Riles had a burial at the commercial cemetery today, and it may be the last until decisions are made.
The problem is that at least 80 families are known to have paid grave opening and closing fees, as well as for grave markers and vaults, in advance, also known as “pre-need.” State law requires that money be held in reserve until goods and services are provided, but Secretary of State Delbert Hosemann says in court papers that the fund is missing at least $373,000 and, although now under state control, has no money to pay.
Deeds to plots remain valid, but it will be up to funeral directors to tell those with paperwork showing they have also paid $2,500 or more in opening and closing fees, for vaults and markers that their receipts are worthless.
Riles, who said he was contacted Sunday by the Secretary of State’s Office, predicted payment arrangements for those who own plots and have paid for pre-need services could be essentially null.
“People who have (plots) will probably have to pay twice,” Riles predicted.
An injunction to revoke the license was issued Thursday by Chancellor Vicki Roach Barnes, the latest step in an inquiry begun in January by the Office of Business Regulation and Enforcement, an arm of the Secretary of State’s Office.
Court orders have also been placed on business and trust accounts held by Green Acres’ Houston-based parent company, Mike Graham and Associates, set up in Mississippi — including Vicksburg — and Florida. Money in accounts set up in Mississippi were found to have been transferred to other properties owned by the company in other states. No representative of the owners has appeared in court.
Since the state filed its initial complaint Jan. 23, at least three burials have taken place at the 15-acre cemetery on U.S. 80. Some funds do remain in a perpetual care trust account to pay for mowing and basic maintenance. The status of cemetery employees was not known.
Kamman said he expected to be notified of the state’s intentions today, but remained unsure about what Green Acres’ clientele will do from here on out.
Seven additional funeral industry firms in Mississippi were targeted for action by Hosemann’s office. Corporate reporting violations alleged at Green Acres were the most serious in terms of the total of missing money.
The cemetery was established in 1955 and operated by Joe Varner for 30 years until his death in 1989. After a succession of operators, it was purchased by Graham in 2001. A number of liens and personal lawsuits had been filed against the company in the years leading up to the current probe, according to Warren County Chancery Court records.
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Contact Danny Barrett Jr. at dbarrett@vicksburgpost.com.