UPDATE 6/20/8 - NPS Scandal now involves 19 states. The following article from the Kansas City Star's Rick Alm is the best roundup of the NPS meltdown and what it means for consumers. Special thanks to the KC Star for permission to reprint the article.
Seller of prepaid funeral plans experiences financial meltdown
By RICK ALMThe Kansas City Star
But they quit asking in 2000 after forcing the company in court to tighten its financial practices.
Now, the company is in receivership, its financial reserves apparently short of covering the costs of the funeral packages it has sold. The financial meltdown has put hundreds of funeral homes in at least 19 states at risk to be dragged down with it.
Many in Missouri’s funeral industry are asking how state officials let the company run into financial problems again.
One is Marty Meyers, who bought and renamed Meyers Funeral Chapel in Blue Springs in January last year. The sale included around 700 National Prearranged contracts promising to deliver funeral services that he estimates will cost $4.6 million.
Meyers has to honor those contracts when the time comes. One funeral Meyers provided in May was contracted for in 1982 for around $2,500, but it looks as if the contract’s face value of $2,500 is all he will get for services that in 2008 cost nearly $10,000.
Meyers said most funeral homes can’t sustain losses like that for long, and he figures he is on the hook for a couple of National Prearranged funerals every month for years to come.
“That’s the difference in making it and not making it,” he said. “We’re going to honor contracts as long as we are financially able.”
Jack Spooner, a St. Louis lawyer for the family that owns the company, defends National Prearranged and its practices. He said money was spent properly and insists the company never missed paying for a funeral — until Texas regulators seized the company this spring and halted new sales activity.
Texas regulators started asking questions last year after detecting an unusually high number of questionable insurance policy transactions involving National Prearranged and its sister firms, Lincoln Memorial Life Insurance Co. and Memorial Service Life Insurance Co., which are based in Austin.
One question led to another, and the meltdown was underway.
“As discussions went on they discovered more and more issues,” said Margaret Jonon, financial counsel for the Texas Department of Insurance.
The Texas agency placed all three companies under “confidential supervision” in October and then seized control and appointed a receiver to operate them in April. The agency declared the firms were “inextricably intertwined” and so troubled that their continued operation would be “hazardous to the public.”
In light of National Prearranged’s legal problems with Missouri regulators throughout the ’90s, “I just don’t understand why someone was not watching them,” said Duke Radovich, chief executive of the Kansas City-based Charter Funerals group, which did not do business with National Prearranged.
Missouri officials are pointing fingers at one another, and the dispute has all the markings of a new battle in the longstanding political war between Republican Gov. Matt Blunt and Democratic Attorney General Jay Nixon.
Nixon spokesman Scott Holste said the attorney general’s obligation ended in 2000 when court action got the company to clean up its finances. Absent further complaints against National Prearranged, he said, it was up to state regulators overseen by the governor to keep tabs on such companies.
But routine state audits of prepaid funeral companies and customers’ contracts apparently are rare.
Radovich, for instance, said the state hadn’t audited his Charter Funerals group in more than 10 years.
In the opposite corner the Missouri Department of Insurance, Financial Institutions & Professional Registration, with input from Blunt’s office, recently appointed Platte City attorney Miller Leonard as special counsel to investigate “events that led to the current hazardous financial condition” of National Prearranged.
That inquiry appears aimed in part at Nixon’s office.
“We need to come to an understanding how a bad situation turned into a much more critical situation,” said Emily Kampeter, a spokeswoman for the state agency, which oversees both the insurance and funeral industries.
The latest development in the dispute came Friday when Nixon’s office announced it was seeking the Insurance Department’s permission to bring legal action on its behalf “against insurance, banking entities and others involved” with National Prearranged.
A spokesman for Nixon would not comment on the request, outline any specific allegations or identify any potential targets except a bank in St. Louis that did business with National Prearranged.
A spokesman Friday said state insurance director Linda Bohrer had no comment on Nixon’s request.
What’s clear is that no Missouri agency took action against the troubled firm until April — after Texas and some other states had already taken legal steps to protect their residents’ investments in prepaid funeral plans.
Now the matter is entangled in multi-state regulatory proceedings, and no one is speculating what might happen next — or how much money might be lost.
“There’s a lot to sort out,” Jonon said. “We’re not able to talk about specific numbers. We are sorting it out as quickly as possible, but it’s going to take a while.”
The Missouri State Board of Embalmers and Funeral Directors said National Prearranged has at least 46,000 customers in Missouri with contracts for future funerals valued in excess of $104 million.
Missouri is thought to be National Prearranged’s highest sales state, followed by Texas, where authorities estimate more than 39,000 contracts valued at $159 million are in force.
With privately held National Prearranged and its two insurance sisters now in the hands of Texas’ receivers, the company’s owners have been shoved to the sidelines. They could not be reached for comment.
“They’re not really in a position that would allow for” interviews or public statements, said Spooner, their St. Louis lawyer. “We essentially gave them (Texas regulators) the keys to the car, and we’re cooperating.”
The Missouri embalmers board said audits of company books are expected to discover consumer trust funds “substantially and significantly” underfunded and probably unable to reimburse consumers’ prepaid funerals.
Texas authorities recently issued a warning to funeral home directors that present-value reimbursement is probably not in the cards. The first round of payments it recently made as receivers, including at least one to Meyers in Blue Springs, bear that out.
State insurance regulators say industry safety net groups like the Missouri Insurance Guaranty Associations could step in and bail out Missourians’ funeral contracts underwritten by the Texas insurance firms. Counterparts in other states could do the same for their residents. But to what level is unclear since each state’s guarantee fund has its own rules and monetary limits.
Where’s the money?
National Prearranged was founded in 1979 by James Douglas Cassity, a disbarred Springfield, Mo., attorney who in the early 1980s served a six-month stretch in federal prison for fraud in an unrelated tax shelter scheme. His role in National Prearranged and myriad other Cassity family interests is unclear.
His name rarely appears in connection with family business, but Jonon noted he has engaged in recent talks with Texas insurance authorities.
“We were kind of surprised,” she said.
On paper, a Cassity family trust and family members, including sons Brent and Tyler, appear to control or influence a consortium of insurance companies, funeral homes and cemeteries.
According to court filings and other records, those entities appear to include Mount Washington Forever Funeral Home and Cemetery in Independence, Forever Enterprises Inc., Forever Memorial Inc., Forever Network Inc., Forever Illinois Inc., Forever Georgia Inc., Forever Pre-need Insurance Agency Inc., National Heritage Enterprises Inc., Heritage Research Inc., Lincoln Services Inc., National Cemetery Management Co., National Cemetery Merchandise Inc. and the RBT Trust II.
The Cassitys don’t return calls these days, and company lawyers such as Spooner aren’t saying much.
The big question: Where’s the money?
“They never failed to pay for a funeral,” Spooner said when the scandal first broke. “When you trace that money, you’re going to see that money was used strictly for business purposes and to pay premiums on policies. You’re not going to find them buying jets, boats and throwing $5 million parties.”
The crisis spun out of the complex financial relationships that underpin the pre-need industry, which Nixon a few years ago estimated had grown to a $1.6 billion enterprise in Missouri alone.
Basically, it works like this: Funeral homes sign advance contracts with individual customers. In return for money up front, the funeral home promises a certain package of funeral services when the person dies.
National Prearranged underwrote each of those contracts, agreeing to share some fees with the funeral homes and eventually reimburse its contracted funeral expenses.
National Prearranged financed those obligations with the proceeds of life insurance policies it bought and held on each prepaid customer, cashing each policy in when the customer died.
Missouri law requires at least 80 percent of the value of each contract to be held in trust. Industry critics like the National Funeral Consumers Alliance say that amount is woefully inadequate and note the minimum in many states is much higher. Texas, for instance, requires 90 percent. New York demands 100 percent.
In Missouri, prepaid companies such as National Prearranged are permitted by law to invest trust funds in prudent, interest-bearing financial instruments, such as whole life insurance policies, which increase in value over time to cover 100 percent of each contract’s face value, plus keep up with inflation.
Authorities now allege National Prearranged bled those whole life policies of their cash value and let them lapse, replacing at least some with less-valuable term life insurance policies that paid no interest.
When Texas authorities last fall discovered unusually large numbers of lapsed policies they started asking questions.
So did Alabama-based Hannover Life Reassurance Co. of America, a National Prearranged affiliate’s re-insurer that alleged in a pending lawsuit a racketeering conspiracy that defrauded Hannover of at least $15 million through the practice of converting the whole-life policies to term insurance.
Hannover alleged National Prearranged and others acted to “churn” the insurance policies from whole life to term while bleeding the policies of cash that ultimately was paid to the defendants for “high commissions and marketing fees” while denying Hannover its fair profits.
Spooner said the company denied those allegations and was fighting the legal action in U.S. District Court in St. Louis.
Missed opportunities
Missouri authorities have been asking questions about National Prearranged since at least 1992 when the attorney general sued the company over other trust funding issues.
That court action stretched into May of 2000 and involved years of court-ordered monitoring of its books.
Monitoring ended in 2000 when proper financing and insurance was in place to cover consumer contracts then on the books.
No requirements were put in place for future monitoring.
Another missed opportunity unfolded in 2005 when Nixon launched a much-ballyhooed “Operation Grave Concerns” crackdown on the prepaid funeral industry.
That initiative put a handful of Missouri funeral home operators and pre-need sellers behind bars for financial shenanigans that appear similar to those now engulfing National Prearranged.
National Prearranged got a glance from Nixon at the time, but only for failing to oversee a Salem, Mo., funeral home operator who was convicted of fraud in the misuse of payments from her customers with National Prearranged deals.
National Prearranged paid the state $10,000 in an out-of-court settlement with Nixon’s office and agreed to tighten its recordkeeping oversight of funeral directors.
But no one tightened oversight of National Prearranged, and three years later its financial house was tumbling down.
“Somebody needs to go to jail,” said Meyers, the Blue Springs funeral director.
“I’ll be damned if the Cassity family is going eat the pie and leave us the crumbs.”
Anyone with questions about National Prearranged Services contracts can call the Missouri State Board of Embalmers and Funeral Directors at its NPS hotline at 1-866-296-8801 or send e-mail to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
At least two people have played two different roles in the 16-year history of controversy.
•Douglas M. Ommen for a time as an assistant attorney general led the state’s legal action against National Prearranged that stretched from 1992 into 2000. Until May 30 he was director of the Missouri Department of Insurance, Financial Institutions & Professional Registration, which regulates the prepaid funeral industry.
Earlier this year Ommen was named by Gov. Matt Blunt to a quasi-judicial post at the Missouri Administrative Hearing Commission. He started that job June 2.
•Randall J. Singer, from 1993 until early 2001, was director of Missouri’s Division of Professional Registration, which also had a role in regulating the industry through the Missouri State Board of Embalmers and Funeral Directors.
When Texas and other states began piling on with legal actions earlier this year, one target was the same Randall J. Singer, who surfaced as president of National Prearranged’s sister company Lincoln Memorial Life Insurance.
Ommen has declined interview requests. Singer could not be reached.
Before its current troubles, National Prearranged was one of the national funeral industry’s largest political donors. The National Institute on Money in Politics recently traced $108,827 in contributions linked to National Prearranged to political candidates between 1999 and 2006, ranking it 10th in the nation among funeral industry givers.
Much of its cash giving went to Missouri politicians, including Attorney General Jay Nixon and Gov. Matt Blunt.
To reach Rick Alm, call 816-234-4785 or send e-mail to This e-mail address is being protected from spambots. You need JavaScript enabled to view it . | Rick Alm, This e-mail address is being protected from spambots. You need JavaScript enabled to view it | Rick Alm, This e-mail address is being protected from spambots. You need JavaScript enabled to view it
5/21/08 - TEXAS TAKES CONTROL OF NPS; MISSOURI FORMS PRENEED LEGISLATIVE COMMITTEE
The Texas Department of Insurance has put National Prearranged Services in receivership. The St. Louis Post-Dispatch reports the prepaid funeral company - accused of misusing millions of dollars of consumers' prepaid funeral money - has been ordered by a Texas court to stop transacting business. The state appointed Donna J. Garrett as the receiver, and the Post-Dispatch states "Texas was concerned that another party might file a lawsuit or take action that could hamper operations at NPS [and its insurance companies, Lincoln Memorial Life Insurance in Missouri and Texas]. . "
The article says Donna Garrett will spend two to three months sorting out NPS' finances and trying to determine if there's enough money to pay funeral directors who sold their customers NPS policies. Funeral directors were expecting that growth on the policies would cover their costs when consumers died and actually needed their funerals, but it looks unlikely funeral homes will get anything more than the face value of the policies, if that. What does this mean for consumers? If a funeral home promised in a contract that they'd guarantee the price of your funeral, they're obligated to honor that. Experience shows, however, that some funeral homes will try to wiggle out of their responsibilities to consumers by charging extra. Be sure to read your contract carefully, and do not let a funeral home take financial advantage.Meanwhile in Missouri, the Legislature has formed a Joint Committee on Preneed Funeral Contracts to study the effect of the preneed funeral industry on consumers and report on their findings by January 31, 2009. The bill number creating the committee is SB 788. Thankfully, the poorly crafted "reform" bills in the MO legislature died (scroll down for our analysis). Let's hope the members recognize how terribly the current laws treat consumers so lawmakers can write clear, meaningful legislation in the next session. It's high time for Missouri to stop letting preneed sellers pocket 20 percent of a customer's money upfront, and then skim the interest every year off the account.
Update 5/3/08 - The next time a funeral home tells you it’s a great idea to “guarantee today’s prices” by prepaying your funeral, pull out this article. Funeral Consumers Alliance has long warned against prepaying for your funeral, but even we’re surprised at how widespread the scams and stolen consumer money have become in the preneed industry. The latest preneed company teetering on the brink --- along with hundreds of millions of dollars consumers have prepaid for “peace of mind” --- is National Prearranged Services.
NPS and its affiliated life insurance company, Lincoln Memorial Life Insurance, are under investigation by regulators in at least 10 states. Alleging the companies have been draining money out of consumers’ prepaid insurance contracts, regulators in Texas, Missouri, Kentucky, Iowa, Ohio, have told the company to stop selling policies while officials examine their books.
It’s not clear how many consumers are affected, but according to the Kansas City Star, at least 46,000 Missouri residents have bought NPS policies. The Texas departments of banking and insurance says at least 39,000 Texans have bought them too.
So what has NPS been up to? According to an article in the Kansas City Star, a pyramid scheme:
“The allegations suggest a pyramid scheme has been in place for at least eight years by the insurer and National Prearranged Services of St. Louis that used payments from new customers to pay off existing ‘pre-need’ funeral customers’ guaranteed burial plans.”
The Missouri Board of Funeral Directors and Embalmers’ Web site says this:
“. . . NPS may have shortages in their preneed trust accounts. Specifically, the Board has reason to believe that the trust accounts contain a substantially and significantly lower amount than the 80 percent of preneed funds [paid by consumers] that are statutorily required to be in trust . . .The trust may also have far less than the amount of preneed funds that were transferred to the trust by other preneed sellers/funeral establishments through ‘rollovers.’ Frankly, serious questions have been raised as to whether NPS will have sufficient funds to continue to pay its obligations on preneed claims.”
According to the Kansas City Star, Hannover Life Reassurance Company sued NPS last year, claiming NPS converted whole life insurance policies into less-valuable term life insurance, then took the extra money to pay for “high commissions and marketing fees.” Hannover was apparently NPS’s “reinsurance company,” which means Hannover provided insured NPS against NPS’ own losses.
The Ft. Worth Star Telegram Watchdog columnist Dave Lieber described it this way:
“Here’s what appears to have happened: NPS used money it made from funeral contracts to buy whole life insurance policies, but eventually the company decided to convert these whole life policies into term life policies. This gave the company money up-front because it could borrow money based on the policy. But eventually more money was required to cover the cost of ballooning payments for the term life policies.”
Funeral homes sold NPS policies to customers, depending on policy growth to cover the rising costs of providing funerals to the customer. But it looks like NPS policies probably won’t pay out more than their face value at the time of death, if that. Some funeral homes may try to get families to pay more for the funeral at the time of death so the funeral home doesn’t have to take the hit. Don’t let them. If your family member signed a contract for a price-guaranteed funeral, the funeral home is obligated to provide that funeral without charging you more. Be sure to read your contract carefully and know your rights.
It’s impossible to say how much value your prepaid policy with NPS has, or how much it will have at the time of your death. We can’t tell you whether to continue paying on your policy, or try to cash it out and get what you can now. Some state regulators advise consumers to keep paying policy premiums, others say nothing. Since state regulators are taking over the company and lawsuits against it are pending, we have no idea yet what your best options are. If you’ve got an NPS policy, you should contact the regulators in your state for advice. Be warned, though: many state agencies are giving out only tentative information and may not have much practical advice for you yet. Below is a list of some of the state regulators in charge of the investigation. If you don’t see your state on the list below, do a Google search for your state’s funeral board and insurance department.
Missouri Board of Embalmers and Funeral Directors
Texas Department of Banking - Here's a press release on NPS
Ohio Department of Insurance - the ODI put out a press release detailing the scam NPS was running on consumers.
Iowa Insurance Division - the IID has a press release with answers to consumer questions here.
Kentucky Office of Insurance
Illinois Comptroller’s Office Q&A for NPS and Lincoln Memorial customers
- The state believes the companies are in serious financial trouble, though we don't know what "Routine oversight activities by TDI revealed a significant amount of surrendered transactions by the companies at the end of 2006" means.
- The state has ordered the company to stop selling life insurance in Texas.
- The state is requiring the companies to come up with a plan to make sure they pay out on life insurance policies consumers have already bought to finance their funerals.
- The state claims consumers can expect the companies will pay out the full face amount of the policy, but that funeral homes and consumers can't expect any new growth. For the consumer, this means the policy won't keep growing to keep pace with inflation. It also means that funeral homes who've sold prepaid funerals to consumers with guaranteed prices will have to eat the difference if the customer's funeral ends up costing more than the policy pays out. (Note to consumers - be sure you read your original contract. If it's price-guaranteed, that means the funeral home has to provide the funeral you contracted for, even if your life insurance policy falls short!)
If you've got further questions about your policy or what all of this means, contact the Insurance Dept.'s Consumer Protection office at 800-252-3439, or the Dept. of Banking at 877-276-5554. Funeral directors should contact the Dept. of Banking.
Here's the original press release. (Note to the Texas Departments of Banking and Insurance - we appreciate that you're doing your job to protect consumers, honestly. But please, please learn to write press releases in clear, plain English that the public understands. It really does matter.)
Texas Department of Insurance
Texas Department of BankingFOR IMMEDIATE RELEASE FOR MORE INFORMATIONApril 9, 2008 John Greeley(512) 463-6425
Joint News Release Russell Reese (512) 475-1324Insurance, Banking Departments Issue Orders on CompaniesInvolved With Pre-Need Funeral ContractsAUSTIN – The Texas Department of Insurance (TDI) has issued a Hazardous Financial Condition Order for Memorial Service Life Insurance Company, Lincoln Memorial Life Insurance Co., and National Prearranged Services, Inc. pursuant to Chapter 404 of the Texas Insurance Code. At the same time, the Texas Department of Banking (DOB) entered into an Agreed Order with National Prearranged Services, Inc., to cease selling prepaid funeral benefits contracts pursuant to Chapter 154 of the Texas Finance Code.
National Prearranged Services (NPS) of St. Louis sells pre-need funeral contracts in several states and is licensed in Texas by the DOB to sell insurance-funded prepaid funeral benefits contracts. NPS has approximately 39,000 insurance-funded prepaid funeral benefits contracts outstanding in Texas. NPS is a general agent for Lincoln Memorial Life Insurance Company and Memorial Service Life Insurance Company. NPS is ultimately owned by a Trust created by the Cassity family in the state of Missouri.
Lincoln Memorial Life Insurance Company and Memorial Service Life Insurance Company were placed in supervision by TDI in October 2007. Routine oversight activities by TDI revealed a significant amount of surrendered transactions by the companies at the end of 2006. In March 2008, TDI issued an order for the companies to cease writing new business in Texas. These actions were confidential, by statute.
The TDI-issued Hazardous Financial Condition Order requires the companies to establish a plan to pay policyholder claims and to address existing contracts.
The DOB-issued Agreed Order requires NPS to cease selling prepaid funeral benefits contracts in Texas. The DOB Order also requires NPS to take actions to comply with Chapter 154 of the Texas Finance Code for outstanding contracts and to return all prepaid funeral benefits contracts and associated payments received since March 17, 2008 to the purchasers. Finally, the DOB Order requires NPS to initiate actions to remove NPS as the policy beneficiary for polices issued in conjunction with Texas prepaid funeral benefits contracts.
“While every effort was made to secure the companies and return them to normal operations, the decision was made to take this regulatory action,” said Texas Insurance Commissioner Mike Geeslin. “As we move forward, our goal is to use every law on the books to protect consumers, coordinate with other regulators and states and – most importantly – keep all parties informed as issues develop.”
“It is imperative that we work closely with NPS and the funeral providers to ensure all Texas consumers receive their prepaid funeral goods and services as originally promised,” said Texas Banking Commissioner Randall James.
TDI, the DOB and regulators in other states will continue to work with NPS, Memorial Service Life Insurance Company and Lincoln Memorial Life Insurance Company for a reasonable resolution for consumers in Texas and elsewhere.
Texas consumers with pre-need funeral contracts funded by insurance policies written by Memorial Service Life can expect that the policies will be paid up to the face amount. However, it is unlikely that funeral providers will receive any additional compensation in the form of a policy or contract growth payment from NPS which will affect the 650 Texas funeral homes who have agreed to service the prepaid contracts as the funeral providers.
Consumers and insurance agents with questions about the status of a pre-need funeral contract should contact TDI’s Consumer Protection at(800) 252-3439 or the DOB at (877) 276-5554
. Funeral home operators/agents should direct questions to the DOB.
# # #
ORIGINAL STORY published April 5, 2008 - If you've got a prepaid insurance plan for your funeral from National Prearranged Services or its subsidiary, Lincoln Memorial, Texas regulators won't tell you if your policy's in trouble, according to Ft. Worth Star Telegram columnist Dave Lieber. In a recent Watchdog column, Lieber said the Texas Dept. of Insurance won't comment on whether or why the state has ordered the companies to stop selling in Texas.
Texas officials decline to comment on the financial status of NPS, which also goes by Forever Enterprises. Thanks, then, go to the Kentucky Office of Insurance, which tells us on its Web site that Kentucky has suspended NPS from selling because of a similar action in Texas. According to Kentucky, the Texas Insurance Department issued a directive to NPS' subsidiary to cease writing new business in Texas effective March 21.
Reason cited: "Lincoln Memorial's hazardous condition as well as other issues related to premium receivables."
This is interesting, considering the Texas Department of Banking's Web site lists Lincoln Memorial Life Insurance company as "active" with "normal operations." Check for yourself on their site, but beware it must be one of the most user-unfriendly government sites ever. Looks like the Dept. wants to make it hard to get information by any means.
Sure enough, the Kentucky Dept. of Insurance lists a cease and desist order against Lincoln Memorial dated March 27, 2008. The order states, "Whereas, as a result of Lincoln Memorial's hazardous financial condition as well as other issues related to premium receivables, the Texas Department of Insurance issued a Directive to Cease Writing New Business to Lincoln Memorial effective March 17, 2008."
What's going on, Texas? What about the consumers holding NPS or Lincoln Memorial policies? Why has the state ordered the company to stop selling, but still lists it as "active" with "normal operations?" Lieber writes:
The Watchdog asked Texas banking and insurance regulators for any information about NPS. They all declined to answer any questions, citing confidentiality laws.
"The fact that it came out in another state's document, we have no control over that," said John Greeley of the Texas Insurance Department. He couldn't comment further, he said, because "among the range of actions we can take, some of the actions are confidential." State insurance lawyers were unavailable for comment, he said.
Gee thanks. Care to explain to policyholders why something so important as ordering a company to stop selling insurance is "confidential?" FCA of North Texas' Jim Bates (also a board member of FCA National) told the Star-Telegram, "I can't figure it out, there's just something wrong about that. We should be given information about what our government agencies are working on."
Hear, hear. Note to Texas regulators - your job is to protect the public. That includes warning consumers who may be depending on a bad insurance policy to pay for their funerals.
Hats off to Watchdog Dave Lieber - we need assertive press men like you to keep government accountable. Keep their feet to the fire.
Got information on National Prearranged Services or Lincoln Memorial? Leave us a comment below or email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it
The Cassidy's are not stupid people. They have successfully operated one of the biggest money laundering scams for years and years. Not all funeral home owners & managers are horny old coots looking for a booty shot by their pre-need representative.....most of them were taking the word of a well trained scam artist accomplice. (sorry to all of you that are offended by that, but in hindsight, you must realize it now that you were only given the information that you needed to sell the product, right?) Most of these sales representatives were completely clueless of the bigger picture, but then again, many of them had serious doubts, but never questioned them. We would all love to think that we live in the trusting world of the Walton’s family, but we don’t. The Cassidy’s are vial, self promoting crooks, that prey on unsuspecting individuals, whether it be clients or employees. They will build you up and make you believe, then drop you like a rock if you ever question. Many of us (former employees of the Cassidy’s) still stay in touch and talk about all the things that were going on right under our noses, and we had no clue. All I can say is that if I was your rep, I’m sorry. I have lost many nights of sleep knowing that I played a role in all of this, not on purpose, but nevertheless, I helped them basically make millions and screw a lot of people. (not that it even compares, but I never received my last paycheck and found out that my insurance had been cancelled three months prior to me leaving the company). Let’s not argue and point fingers at each other. Let’s make the Cassidy’s answer for their wrong doings. We are all in this together. We owe it to the families that we serve, to move forward from this and be wiser next time! Short skirts or not...... Never trust the words being said............research, question, and use that God given gift of intuition!
I guess I just don't understand..... If the common Joe goes out and files for bankrupsy protection, it is made clear that there is no way making losses from illegal activity go away, yet the Cassidy’s are filing for protection for NPS? How? They took the money, isn't that an illegal activity? Secondly, the Cassidy’s own some of the most lavish properties, both for business and personal use.....why are these properties not seized NOW, and sold off to help the funeral homes that will be ultimately devastated by financial losses they will incur, thanks to the Cassidy’s? (Christ knows how hard they worked to buy back the shares of the corporation back in 2000 -2001 so that they could take complete control of the businesses and not have to share their information with anyone! I was there. I questioned. I was fired immediately!) I wish I could say that they were alone, but they are not. There are other funeral homes out there living off the money that people have put aside to cover their final expenses, and get away with it. Let's face it folks....... The one's with the money are the ones who win. If I were the betting type...... I would say the next St. Louis funeral scandal will involve an old name that has funeral homes in North County, Chesterfield and St. Peters. Their name sounds much like the way they treat their families, like butt holes! This family spent thousands to reclaim sales tax from the state, claiming burial vaults should not be taxed, yet how many families who paid sales tax received a refund from them? It is no longer a compassionate profession to many of these funeral homes. It is an opportunity to take advantage of people during an uncomfortable time. Buyer beware! Ask questions, and as ghoulish as it sounds, shop around. There are still funeral homes out there that want to take the time to help you understand, help you spend wisely, and genuinely care about you and your family. Sometimes the old saying, “the bigger they are, the harder they fall”, proves itself to be true. The questions I always tell people to ask their funeral director is: “ Who owns the funeral home? Where did the owner(s) graduate mortuary school? How many other businesses do they own?” These three simple questions will answer the real question of; “how dedicated is this funeral home?” None of the Cassidy’s are mortuary school graduates. Funerals just happen to be a quick easy way to the money needed to support their lavish lifestyle, but in their defense, they aren’t the only ones that have figured this out! My purpose and intent of getting into the funeral business 24 years ago has been negatively overshadowed in the past 10 years by funeral home owners like this. I take responsibility for allowing my own morals to be warped by employers such as this, but am proud that I have taken the action to place myself into an honest facility that still believes in tradition and honesty. I hope that in the near future I can extend one piece of advise to the Cassidy family (and the other family mentioned), and that advise would be; “don’t drop the soap!”
ST. LOUIS - NPS/Lincoln Memorial Life has shut down its operations, according to a company account representative who told Kates-Boylston Publications that owner Brent Cassity broke the news during an employees-only conference call on April 5.
Between 50 and 60 sales representatives were let go during the call. An NPS insider who declined to be identified by name said the move was in response to the Texas Department of Insurance’s order to Lincoln to stop writing new business.
The good news for funeral home owners is that the Texas Department of Insurance — which has taken the lead role among the states investigating the company — announced April 9 that it, along with the Texas Department of Banking, is forcing NPS/Lincoln to “establish a plan to pay policyholder claims and to address existing contracts.”
Under the Texas order, NPS must also remove itself as the policy beneficiary on its Texas contracts, a practice the company is said to have used on a regular basis. But the bad news is that NPS/Lincoln will only pay face amounts going forward. Further, Kates-Boylston has learned that Lincoln never issued policies to some of its funeral home clients. Instead, it offered paid-in-full certificates.
Tom Riperda of Educational Concepts Unlimited, an insurance training firm in Belleville, Ill., noted that the business arrangement doesn’t bode well for funeral directors because it means NPS is probably the beneficiary of policies, not the funeral homes.
No Policies, Just Certificates
So far, no funeral directors have come forward claiming that NPS has failed to pay up. “We’ve had several claims with them since this started going down, and we’ve been paid in a very timely manner,” said Dave Searby, owner of Searby Funeral Home in DuQuoin, Ill. Searby even said he’s gotten full growth points.
However, 234 funeral homes recently sent a letter to Cassity to complain about the missing policies. “There is a concern that the funeral directors, who are licensed insurance producers, completed Lincoln Memorial Life Insurance applications to fund the prearrangements but have never seen a policy,” the Jan. 11 letter reads. “When one funeral director phoned the Illinois Insurance Board to inquire if the policies were backed by the Illinois Life and Health Guarantee Association, he was told to check the policy,” the letter goes on. “All the funeral homes have are ‘Paid in Full Certificates.’ It is also a concern that when another funeral director requested a copy of the policy, one was sent but it was incomplete and World Service Life Insurance Company of America was the company name on the policy, not Lincoln Memorial Life Insurance Company.”
Cassity did not respond to interview requests in time for publication.
A source close to the company said the certificates are essentially worthless. “You and I could do up a paid in full certificate on a computer,” the source, who asked not to be named, said. “It means nothing.”
So bad is the situation that even some of the companies’ most loyal employees are now feeling hurt. “I feel taken advantage of,” said Danielle Grace, a former NPS account executive who left the company last December.
“My funeral homes put their trust in me,” Grace continued. “They did business in good faith with me, and I turned around and did business in good faith with NPS. I feel that NPS owners and management weren’t honest with us. In fact, I know they weren’t. I feel a huge sense of loyalty to the funeral home owners who are left wondering what is going to happen and what to do next. It’s truly an unfortunate situation for them. This is their future.”
NPS- National Prearrange Services- Funeral Cost Scandal hits 500 Million. Here is a quote from a recent article on Funeral Cost. “The FBI is interested. Funeral homes across the nation wonder if they will be forced to pay for tens of thousands of funerals. Authorities are tracing the various fates of $500 million in prepaid funeral funds.”
More importantly as Funeral homes pay for this your cost goes up.
http://www.stltoday.com/stltoday/news/stories.nsf/stlouiscitycounty/story/3F4D6DC2E8D284FC862574810011E33E?OpenDocument
Again the lesson here it is do not do preneed. Preplan but do not prepay. No matter what is said a low cost or lower cost funeral cannot be done by prepaying a funeral director
So what will be the fate of the Cassitys and the Cassity family trust? I think a lot of people are waiting and watching to see what happens.
http://www.stltoday.com/stltoday/business/stories.nsf/story/56E56BDA8A8EADB7862574900007978D?OpenDocument
This is interesting: from the Texas / South Central News
Texas Works With National Group to Help Customers of Failed Insurers
July 11, 2008
"The Texas Department of Insurance (TDI) is working closely with the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) to protect consumers with insurance policies issued by Lincoln Memorial Life Insurance Company (Lincoln Memorial) and Memorial Service Life Insurance Company (Memorial Service).
Most of these insurance policies are related to pre-need funeral contracts purchased by consumers through National Prearranged Services Inc. (NPS). All three companies were placed in receivership in Texas on May 14, 2008.
"The goals of this consumer protection plan are pretty straightforward," said Texas Insurance Commissioner Mike Geeslin, who is the Receiver for the companies. "Consumers should get the benefit of the insurance policy they paid for, and funeral homes get paid from the insurance policy benefits when they provide burial services to the consumer. I would like to commend NOHLGA and its member guaranty associations for stepping forward to help protect consumers in this matter."
"NOLHGA and its member guaranty associations have been working very closely with the Texas Department of Insurance on the plan," said NOLHGA President Peter Gallanis, noting that Lincoln Memorial and Memorial Service have more than 200,000 insureds residing in all 50 states.
It is anticipated that the consumer protection plan will be filed with the Texas receivership court later this summer.
The Receiver has contracted with Donna Garrett to serve as Special Deputy Receiver (SDR) of Lincoln Memorial, Memorial Service and NPS.
Source: Texas Department of Insurance, www.tdi.state.tx.us"
"TAG SALE!!! National Prearranged Services has been placed into Rehabilitation, and the company is selling off most of the company assets. We are holding a tag sale on Tuesday, July 8 from 10:00a.m.-5:00p.m. at the company office located at 10 S. Brentwood, Clayton, MO 63105 on the 5th and 6th floors. Included in the sale will be high end furnishings such as executive desks/credenzas, leather chairs, sofas, armoires, plasma tvs, large screen monitors and patio furniture. We will also be selling wholesale furniture including desks, credenzas, file cabinets and chairs. Any questions, contact Derek Massey at (314)719-2239.
(last published: 07/07/2008) "
They haven't dipped into any, so called, personal money (or the money stolen from unsuspecting NPS clients and reinvested in the Cassity Family accounts), just yet. They are going to sell off the office furniture first. That may be enough ya think?
Has their lifestyle changed?
Can they go after their personal assets or not?
I hope all the funeral home skirt chasers have to close their doors. God help the lustful and the greedy.
http://www.cbpmagazine.com/article.php?articleid=64 (is marble considered "green"...in it's unnatural state?)
Is the "Forever Florida" program and "Memorial EcoSystems" part of this conglomerate? Do a search on the article below...look at all the resources.
(HOUSE COMMITTEE ON LAND AND RESOURCE MANAGEMENT TEXAS HOUSE OF REPRESENTATIVES INTERIM REPORT 2004)
The Cassity Clan will turn the U.S. into another third world country and then live it up in Dubai...with all the other billionaires.
[Note to commentors from FCA: The quotation below is from Bill Stalter's blog, deathcarelaw.com. When quoting material from someone else's site, make it clear where the material came from. Also make sure you set off the material in quotation marks so it doesn't look like you've written it.]
"The Cassitys have a rearguard strategy after all.
The Texas Department of Insurance paid a price for gaining control of NPS and its sister insurance companies: A Rule 11 Agreement. Texas has agreed to not bring litigation against the companies, or various individuals and firms related to NPS. A very steep price, but one Texas may have felt it had to pay in order to gain control of the NPS/Lincoln records.
The $640 million question is who will pursue the Cassitys if the NPS cupboard turns out to be bare? "
What about the other states? Can they sue the Cassitys? Are they pursuing criminal charges? I'll bet they are. Tx would not have protected this criminal family unless they knew other states had the goods on them.
I think the Bank has a HUGE Liability here and I hope that ALL the reps, owners of NPS and the bank have to PAY ALL MONEY BACK NOW!!
http://lincolnmemoriallife.com/LegalDocs.aspx (CLICK ON CHAPTER 11 AGREEMENT) if the link below doesn't work.
http://lincolnmemoriallife.com/documents/5-14-08%20Filed%20-%20Rule%2011.pdf
Cause No. D-t-GV-08-000945
THE STATE OF TEXAS, § IN THE DISTRICT COURT OF
Plaintiff §
V. §
§
MEMORIAL SERVICE LIFE INSURANCE § TRAVIS COUNTY, TEXAS
COMPANY, LINCOLN MEMORIAL §
LIFE INSURANCE COMPANY, §
AND NATIONAL PREARRANGED §
SERVICES, INC. §
Defendants § 250" JUDICIAL DISTRICT
AGREED ORDERAPPOINTING REHABILITATOR AND
PERMANENT INJUNCTION
On this day, the Court heard the
Plaintijj's First Amended Original Petition Requesting
Appointment of Rehabilitator and Injunctive Relief
("Application") filed by the State of Texas at
the request of the Commissioner of Insurance. The Application requests an order placing
Memorial Service Life Insurance Company ("Memorial"), Lincoln Memorial Life Insurance
Company ("Lincoln), and National Prearranged Services, Inc. ("NPS"), Defendants, into
rehabilitation pursuant to TEX. INS. CODE § 443.101
et seq, and appointing the Commissioner of
Insurance for the State of Texas ("Commissioner of Insurance") as Receiver for Rehabilitation
("Rehabilitator") of Defendants. This Application is also brought to obtain a Permanent
Injunction pursuant to TEX. INS. CODE § 443.008(a), restraining Defendants and their agents
from conducting Defendants' business, and restraining other parties from taking any actions
against Defendants or their property.
1. FINDINGS
Having considered Plaintiffs verified petition, the evidence and arguments of counsel,
the Court finds as follows:
1.1 The Court has jurisdiction over the parties and the subject matter of this action.
12 The Court finds that Defendants are in hazardous financial condition as set out in Tex.
Ins. Code § 443.057(9), that grounds exist to place Defendants into rehabilitation under
TEX. INS. CODE § 443.057, and that Plaintiff is entitled to an Order of Rehabilitation and
Permanent Injunction as requested in the Application pursuant to TEX. INS. CODE
443.058.
1.3 The Commissioner of Insurance must be appointed as Rehabilitator of Defendants
pursuant to TEX. INS. CODE § 443.151, and vested by operation of law with title to all of
Defendants' property as defined in TEX. INS. CODE § 443.004(a)(20). Such property
shall include property of any kind or nature, whether real, personal, or mixed, including
but not limited to money, funds, cash, stock, bonds, account deposits, statutory deposits,
special deposits, contents of safe deposit boxes, funds held in share accounts or trust
accounts, retainages and retainers, letters of credit, real estate, fixtures, furniture,
equipment, books, records, documents and insurance policies, intellectual property,
computer software and systems, information technology, internet domain names, patents
and intangible assets, whether owned individually, jointly, or severally, wherever located,
and all rights, claims or causes of action belonging to Defendants, whether asserted or
not, including but not limited to accounts receivable, notes, premiums, subrogation,
insurance and reinsurance proceeds, and all licenses held by Defendants (collectively,
"Defendants' Property"). The Rehabilitator's title to Defendants' Property shall extend to
all items owned by Defendants, regardless of the name in which such items are held.
Pursuant to TEX. INS. CODE § 443.101(a), the Rehabilitator is directed to take possession
of the Defendants' Property, wherever located.
Agreed Order Appointing Rehabilitator and Permanent Injunction Page 2
1.4 The Rehabilitator may take action as he deems necessary or appropriate to perform his
duties pursuant to TEX. INS. CODE § 443.101 et seq. The Rehabilitator shall have all the
powers of Defendants' directors, officers and managers, and the authority of such persons
is suspended except as specifically permitted by the Rehabilitator or his designees.
Further, Defendants and Defendants' agents are required to cooperate with the
Rehabilitator pursuant to TEX. INS. CODE § 443.010. The Rehabilitator shall also have the
special powers requested in the petition as set forth below.
1.6 It is necessaryfor this Court to issue a permanent injunction pursuant to TEX. INS. CODE
§ 443.008(a) to carry out the provisions of TEX. INS. CODE Chapter 443, and prevent
irreparable injury, loss and damage to the general public and Defendants' creditors. A
necessity exists to enjoin Defendants and Defendants' agents from conducting
Defendants' business; to enjoin financial institutions or depositories from taking any
actions in connection with Defendants' property, except as authorized by the
Rehabilitator, and to enjoin all claimants or creditors from asserting claims or causes of
action against Defendants, except as permitted by Tex. INS. CODE Chapter 443.
1.7 Pursuant to TEX. INS. CODE § 443.008, an automatic stay is in effect upon the
commencement of the rehabilitation proceeding.
1.8 By signing this Order, Defendants have waived citation and service of process and have
consented to the entry of this Order.
11. APPOINTMENT OF REHABILITATOR
IT IS ORDEREDthat the Commissioner of Insurance is appointed as Rehabilitator of
Defendants, and granted the following duties and powers:
Agreed Order Appointing Rehabilitator and Permanent Injunction Page 3
2.1 The Rehabilitator is granted and given all powers and authority under TEX. INS. CODE §
443.101 et seg, and any and all other powers and authority under applicable statutes and
the common law of this State.
2.2 Pursuant to TEX. INS. CODE § 443.101(a), title to all of Defendants' Property, including
but not limited to all the assets and rights described in this Agreed Order Appointing
Rehabilitator and Permanent Injunction, is vested in the Rehabilitator.
2.3 The Rehabilitator is authorized to take control and/or possession of Defendants' Property,
wherever located, and remove all such property from Defendants' premises.
2.4 The Rehabilitator is authorized to withdraw Defendants' Property from any banks,
financial institutions and other depositories, agencies of any state or the federal
government, and any other entities, or continue the operation of any accounts of
Defendants, at his discretion.
2.5 The Rehabilitator is authorized to appoint a special deputy and retain any other
professional, administrative, and clerical services as he deems necessary pursuant to TEX.
INS. CODE § 443.102(a). The Rehabilitator is further authorized to set the compensation
of such persons, and pay for such services from Defendants' funds pursuant to TEX. INS.
CODE § 443.015(e).
2.6 The Rehabilitator is authorized to conduct Defendants' business, administer Defendants'
operations, and enter into any contracts necessary to perform the Rehabilitator's duties, at
his discretion pursuant to TEX. INS. CODE § 443.102.
Agreed Order AppointingRehabilitatorand Permanent Injunction Page 4
2.7 The Rehabilitator is authorized to supervise, suspend, terminate, or dismiss any or all of
the agents, employees, officers, and/or directors of Defendants' or retain such persons at
his discretion, and compensate them as he deems necessary from Defendants' funds.
2.8 The Rehabilitator is authorized to receive, collect, control, open and review all mail
addressed to or intended for Defendants, or arriving at Defendants' address.
2.9 The Rehabilitator is authorized to file, prosecute, defend, or settle any action as he deems
necessary, including any action to enforce the provisions of this order.
2.10 The Rehabilitator is authorized to exclude any person from any property owned, leased or
occupied by Defendants, at his discretion.
2.11 The Rehabilitator is authorized to pay claims that are approved by the Rehabilitator or
allowed in accordance with a rehabilitation plan approved under TEX. INS. CODE §
443,103. The Rehabilitator is further authorized to establish a procedure for the
processing of claims, provided that such procedure is consistent with TEx. INS. CODE §
443.103(c)(1), and provides no less favorable treatment of a claim or class of claims than
would occur in liquidation, unless a claimant agrees to a less favorable treatment of a
claim.
2.12 The Rehabilitator is authorized to assume or reject pre-receivership contracts with
Defendants at his discretion pursuant to TEx. INS. CODE § 443.013.
2.13 Pursuant to TEX. INS. CODE § 443.008(m), the Commissioner of Insurance is not required
to file a bond.
Agreed Order Appointing Rehabilitator and Permanent
Injunction Page 5
2.14 In the event a successor is appointed to be the Commissioner of Insurance
, the successor
shall become the Rehabilitator upon his appointment as Commissioner, and the former
Commissioner shall be discharged as Rehabilitator as a matter of law.
2.15 The Rehabilitator'
s designees and any Special Deputy appointed under
TEX. INS. CODE §
443.102(
a) shall have all the rights and powers of the Rehabilitator
, subject to any
limitations imposed by the Rehabilitator.
2.16 The Rehabilitator is authorized and has the ability to take any action that he deems
necessary or appropriate to redeem or revitalize the Defendants as allowed by
TEX. INS.
CODE § 443.
102(b), including the ability to address issues and make applications to the
court relating to surrenders
of whole life insurance policies
and the subsequent
replacement with term policies
, and the ability to
address issues and make applications to
the court related to designation or redesignation
of beneficiaries and/or owners of
insurance policies issued
by Lincoln or Memorial.
2.17 The Rehabilitatoris required
to report to thereceivership court as required
by TEX. INS.
CODE §§ 443.015(g), 443.016, and 443.101(b).
Ili. PERMANENT INJUNCTION
It is FURTHER ORDERED that the Clerk of this Court shall issue a Permanent
Injunction against the persons and entities named below, with the following force and effect:
TO: Defendants and their agents, including but not limited to:
Defendants and their its current and former officers, trustees and
directors (including but not limited to Randall J. Singer, Randall K.
Sutton, George Wise, Brent D. Cassity, L. Keith Hale, Hans H.
Dahl, Nekol Province, Anne M. Chrun, James M. Crawford, and
Howard A. Winner), owners (including but not limited to including
but not limited to Brent Cassity, Forever Enterprises, Inc., National
Heritage Enterprises, Inc., and the RBT Trust 1I), underwriters,
Agreed
Order Appointing Rehabilitator and Permanent Injunction Page 6
affiliates (including but not limited to Wise & Associates, Inc.,
Forever Memorial, Inc., Forever Network, Inc., Forever Illinois,
Inc., Forever Georgia, Inc., Forever Preneed Insurance Agency, In.,
Heritage Research, Inc., Lincoln Services, Inc., National Cemetery
Management Company, and National Cemetery Merchandise,
Inc.), managers, employees, agents, servants, representatives,
attorneys, adjusters and other persons or entities acting on behalf of
Defendants;
Financial institutions, including but not limited to:
any and all banks (including Bremen Bank and Trust Company),
savings and loan associations; trust companies; credit unions;
welfare trusts; or any other financial or depository institutions in
the possession of any of Defendants' Property; and
All other parties, including but not limited to:
policyholders, creditors, claimants, reinsurers, intermediaries,
attorneys and all other persons, associations, corporations, or any
other legal entities asserting claims or causes of action against
Defendants, or in possession of any of Defendants' Property, and
the United States Postmaster.
Each of you are hereby
RESTRAINED and ENJOINED
from taking any and all of the
following actions:
3.1 Doing, operating,
or conducting Defendants' business under any charter,
certificate of
authority, license, permit,
power or privilege belonging to or issued to Defendants, or
exercising any direction, control,
or influence over Defendants' business, except through
the authority of the Rehabilitator or his designees;
3.2 Transacting any business of Defendants' in any manner except through the authority of
the Rehabilitator or his designees;
3.3 Wasting, disposing of, converting, dissipating, using, releasing, transferring, selling,
assigning, canceling, hypothecating, withdrawing, allowing to be withdrawn, offsetting,
concealing, in any manner, or removing from this Court's jurisdiction or from
Agreed Order
Appointing Rehabilitator and Pennanent Injunction Page 7
Defendants' place of business, any of Defendants' Property, or any other items purchased
by Defendants, or any items into which such property has been transferred, deposited or
placed, or any other items owned by Defendants', wherever located, except through the
authority of the Rehabilitator or his designees;
3.4 Releasing, transferring, selling, assigning
or asserting ownership of, in any manner, any
claims
, accounts receivable, or causes of action belonging to Defendants, whether
asserted or not, except through the authority of the Rehabilitator or his designees;
3.5 Doing anything, directly or indirectly, to prevent the Rehabilitator or his designees from
gaining access to, acquiring, examining
, or investigating any of Defendants' Property or
any other property, books, documents
, records, or other materialsconcerningDefendants'
business, under whatever name they may be found;
3.6 Interfering with these proceedings or with the lawful acts of the Rehabilitator or his
designeesin any way;
3.7 Intervening in this proceeding for the purpose of obtaining a payment from the
receivership estate of Defendants as prohibited by TEX. INS. CODE § 443.005(i);
3.8 Making any claim, charge or offset, or commencing or prosecuting any action, appeal, or
arbitration, including administrative proceedings, or obtaining any preference, judgment,
attachment, garnishment, or other lien, or making any levy against Defendants,
Defendants' Property or any part thereof, or against the Rehabilitator, except as permitted
by TEX. INS. CODE Chapter 443, Subchapter F.
EACH OF YOU ARE FURTHER SPECIFICALLY ORDERED to make available and
disclose to the Rehabilitator or his designees the nature,
amount, and location of any and all of
Agreed Order Appointing Rehabilitator and Permanent Injunction Page 8
the items listed above, including but not limited to Defendants' Property, and immediately
surrender all such property to the Rehabilitator or his designees. The Court further specifically
finds and orders that the Rehabilitator is vested by operation of law with title to the rights of
Defendants as the customer of any financial institution. Defendants and Defendants agents are
further ordered to cooperate with the Rehabilitator or his designees as required by TEX. INS.
CODE § 443.010(a).
IT IS FURTHER ORDERED that the United
States Postmasterand any other delivery
services shall deliver to the Rehabilitator any items addressed to or intended for Defendants.
IV. AUTOMATIC STAYS
4.1 Automatic stays are in effect with respect to
actions against Defendants or its property as
provided by TEX. INS. CODE §§ 443.008(c) & (d). In accordance with TEx. INS. CODE §
443.008(f), such stay of actions against Defendants is in effect for the duration of this
proceeding
, and the stay of actions against Defendants' property is in effect for
as long as
the property belongs to the receivershipestate.
4.2 The stays in effect pursuant to TEx. INS. CODE § 443.008 shall be applicable to any
actions descri bed therein commenced either before or after the entry of this order.
V. OTHER ORDERS
5.1 This
Agreed Order Appointing Rehabilitator and Permanent Injunction
shall issue and
become effective immediately, and shall continue in full force and effect until the entry of
an order by this Court terminating rehabilitation entered under TEX. INS. CODE § 443.104.
Agreed Order
Appointing Rehabilitator and Permanent Injunction Page 9
5.2 Pursuant to TEx. INS. CODE § 443.055(b), this
Agreed Order Appointing Rehabilitator
and Permanent injunction
constitutes a final judgment, provided that this Court shall
retain jurisdictionto issue further
orders pursuant
to TEX. INS. CODE Chapter 443.
5.3 In accordance with TEX. INS. CODE § 443.007(d), the Rehabilitator may provide notice of
any application by first class mail, electronic mail, or facsimile transmission, at his
discretion. Pursuant to TEX, INS. CODE § 443.007(e), parites who wish to object to the
application for Rehabilitator must file an objection within 20 days of filing the
application.
5.4 This
Agreed Order Appointing Rehabilitator and Permanent Injunction
does not
constitute a finding of Defendants' insolvency, nor an order of liquidation of Defendants.
5.5 The State of Texas and the Attorney General of Texas shall have a claim for reasonable
attorneys' fees and court costs pursuant to TEX. Ctv. PRAC. & REM. CODE §§ 64.051 and
66.003 and TEx. Gov'r CODE § 402.006, and the amount and payment of such claim are
subject to the provisions of TEX. INS. CODE Chapter 443.
5.6 Notice of the Plaintiff'
s petition and this order shall be provided to the insurance
Commissioners and insurance guaranty associations in the states in which Defendants did
business by first class mail or electronic communication pursuant to TEX. INS. CODE §
443.052(b).
5.7 Anyone over the age of 18 whom is not a party to nor interested in the outcome of this
suit may serve all citations, writs and notices in this cause.
5.8 All of the foregoing is subject to further orders of this Court.
Agreed Order
Appointing Rehabilitator and Permanent Injunction Page to
SIGNED at Austin, Travis County,
Texas, on this the
AGREED AS TO FORM AND SUBSTANCE:
By:
Jennifer S. JaclM,n
Assistant Attorney General
State BarNo. 24060004
Karen Pettigrew
Assistant Attorney General
State Bar No. 01529500
Financial Litigation Division
P.O. Box 12548
Austin, TX 78711-2548
(512) 475-4866 -Telephone
(512) 477-2348- Telecopier
Jennifer.Jacksonaoae state tz us
ATTORNEYS FOR PLAINTIFF THE STATE OF TEXAS
By: - 7^
Hector DeLeon
State Bar No. 05650800
De Leon, Boggins&Icenogle, P.C.
221 West 6th Street, Suite 1050
Austin, Texas 78701
Fax: (512) 482-8628
Voice: (512) 478-5308
ATTORNEY FOR DEFENDANTS
Agreed Order Appointing Rehabilitator
and Permanent Injunction Page I I
http://www.bizjournals.com/stlouis/stories/2008/03/31/story
5.html
"a little SEC info on RBT Trust II"
http://www.secinfo.com/d1zJxf.52k.htm
Centrue and RBT Trust II "are just a suite away"
http://www.reuters.com/article/idUS149717+24-Mar-2008+MW20080324
While you're checking that out...did anyone happen to see who is on the Board of Directors for the Centrue Bank that's moving to St. Louis? Yep, Brent himself. And if you "really" dig you'll see that Centrue's headquarter's just happen to be at the same location as RBT Trust II.
You can't blame the advisors who worked underneath her just because they are women! I am a woman and I blame my myself for not doing MY research on Lincoln Memorial. My decision had nothing to do with the representative who called on me, much less how short her skirt was (which she always dressed in a professional manner). It was a good product and it did what they said it would do for MANY, MANY years. I learned a lesson and that is to check your companies financials on an annual basis. Things change.
Shame on you "Thomas Jefferson". Frankly, your comment is insulting, volatile & self-rightious to have much credit. You are playing on all of our personal guilt & feelings of "being taken". Apparently, if it had been an attractive, buddy type, male sales force who took us golfing, fishing, hunting... That would be more acceptable?
I AM doing business with my former rep and I can assure you it has nothing to with the length of her skirt or my desire to get her in my bed!! She happens to be working with an AM Best A rated insurance company with solid financials. I have looked them up and I have done my research. They have an A rating with Weiss as well!! I will continue to check their rating and financialy every single year.
Shame, shame on the state insurance/banking regulators who were asleep at the wheel. They bear as much responsibility as do the perpetrators of this great crime. Shame on the Stare FDA associations who endorsed the use of thiese products. When will we REALLY learn the age old mantra: "If it looks too good to be true, it is too good to be true"? Sadly, many funeral home owners never will. Due diligence means making a close study of the investment vehicle to be used then basing your decision on the financial facts, not on how much you like the presenter. Every funeral home owner who used NPS will get what they deserve.