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SCI's Preneed Shenanigans

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Preneed Shenanigans by SCI

May 1, 1998

Ms. Charlotte Flynn, Convener
Gray Panthers of Austin
3710 Cedar St., #223
Austin, TX 78705

Ms. Flynn,

My family recently experienced a situation that I feel is morally and ethically wrong and could be encountered by every person and family in our state and nation. I feel that your organization represents a group of people who are most likely to encounter this situation in the near future and, in all likelihood, may have already gone through such an experience. This experience has had a profound effect on me, and I have determined to take whatever steps I can to try and prevent others from going through the same things.

In February my father passed away in Amarillo, Texas. Several years ago, he and his wife purchased pre-arranged funeral services and paid for them in full. Several family members went to Schooler-Gordon Funeral Home to make the final arrangements. Rather than spending the fifteen minutes we thought it would take to finalize arrangements, we experienced several hours of an emotionally traumatic experience that still has me upset two months later.

Briefly, we learned that what my father and others believe is a prearranged service that has prepaid "all" costs is not accurate. Opening and closing the plot, police escort service and other items are additional although many people believe this is all part of the funeral home's service. The worst experience was when we were made to believe that (1) the casket selection in the price my father had paid for was limited to several colors that were unsuitable; (2) we could have the appropriate casket if we would pay the $600 "upgrade cost" between a "nonprotected" and "protected" casket; (3) the appropriate casket selected by my father could be found no where in the city of Amarillo; and (4) the appropriate casket could be brought in if we would wait six (6) days. After spending several hours, Schooler-Gordon was very aware of our obvious displeasure. We agreed to come back the next morning, while Schooler-Gordon tried to find a suitable casket. We agreed to a casket the next morning that Schooler-Gordon quickly pointed out as a $600 upgraded casket that we would get at no extra charge. I later found out from other funeral homes that the cost difference between "protected" and "unprotected" caskets was $25. I also learned that there is a storage facility in Amarillo that keeps several hundred caskets on hand for use by any funeral home in the area.

I believe that this experience is ethically and morally wrong and feel that it is entirely too easy for a funeral home to operate in this manner and at the emotional expense of a grieving family. Had my father not prearranged and paid for his funeral, I would have spent an additional $600 without hesitating, rather than use one of the caskets that we were shown. In all likelihood, I would never have found out that I had paid $600 for a $25 gasket. How many times does this take place every day in our state and country?

Since February, I have worked with Representative Harriet Ehrhardt to determine the extent of this problem. I have learned that although this type of experience can occur at any funeral home, it appears to be more likely in funeral homes owned by SCI and two other very large corporations in the death care industry. The CBS program—Sixty Minutes—did a special on SCI funeral homes earlier this year. US News and World Report has recently also had an article relating to the death care industry, and the information available on the Internet is staggering. This week, KFDA-TV in Amarillo ran an investigative special on this subject and my family's experience. Even I was shocked to hear a former Schooler-Gordon (SCI) employee tell the reporter that our experience is exactly how this company operates. Also, the KFDA reporter told me that on the night of the program and the next day, the station received numerous calls from citizens who have had the same or a similar experience.

I have not filed a complaint with any of the three committees regulating funeral homes. I have determined that although they would address my family's experience specifically, it is apparent that there is nothing to insure that this same experience would not take place with the next family that walked in the door of Schooler-Gordon, or any of the other SCI-associated funeral homes. My greatest concern is that in the KFDA news report, Schooler-Gordon stated that less than 1% of the families they serve file a complaint. Because of the emotional distress families are in at this time, I believe that most people do not realize what is taking place and are focused only on getting through this difficult period. This does not make this type activity "right." In fact, I believe that it makes it even more ethically and morally reprehensible. The size and political clout of SCI and the rest of the death care industry is so great that I believe a change will only come through the focused efforts of our state officials and the efforts of groups such as yours to educate the public. I believe that SCI or any other large company is much more accountable when confronted by a large organization or group of individuals rather than by one person or family.

. . . I would like to become involved in getting this message out to the citizens of Texas. I am available to meet with you at any time. I would also like to meet with your membership or speak at any of your meetings. . . .


Jerry Huggins
3217 Ashland
Bedford, TX 76021
817-267-4541 (home)



Diocese Sign Deals With Devil

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Catholics Targeted

Is Something Wrong with this Picture?

In the spring of '97, The Pilot—a newspaper put out by the Boston Archdiocese—ran an ad for preneed funeral insurance for the Forethought Company, heavily promoted by Loewen-owned funeral homes. Return address for inquiries: The Pilot, Archdiocese of Boston, P.O. Box 282, Batesville, Indiana. Indiana?

In June of '97, Stewart Enterprises signed a deal with the Los Angeles diocese—to build mortuaries on the grounds of at least six Catholic cemeteries in the LA area.

In early spring '98, Loewen signed a deal to run the Catholic cemeteries in Tucson, Arizona.

By October of '97 the Funeral Monitor reported that Service Corporation International (SCI) had established a subsidiary, "Christian Funeral Services, Inc., dedicated to the management of funeral homes, cemeteries and related assets for Catholic dioceses throughout North America." In November, Death Care Business Advisor detailed the first project: a 66,000 sq. ft. funeral home, Centre Funeraire Cote-des-Neiges, which is nearly complete, on the grounds of Notre-Dame-des-Neiges Cemetery in Montreal.

The Archdiocese of Chicago (Cook county and Lake county) currently gets 6-7% of its operating budget from its cemetery operations. If local chains get involved, will it go up?

Given the recent publication of "The Catholic Cemetery: A Vision for the Millennium" put out by the National Catholic Cemetery Conference, the above arrangements seem suspicious at best:


p. 11—"The canon law of the Church states that the Catholic cemetery is a sacred place."

p. 15—"The burial of the dead has always been recognized by the Church as a religious rite and a corporal work of mercy. . . . the common thread among all Catholic cemeterians is the exercise of ministry."

p. 41—"Catholic teaching, with its preferential option for the poor, makes clear our obligation to assist those in need."

p. 47—"To emphasize Church teachings and to promote the universal application of the Order of Christian Funerals, the Catholic cemetery may consider operating its own funeral home(s). This would restore its traditional role in funeral ministry . . . . In addition, this would allow the Catholic cemetery to more fully attend to its mission: . . . Fostering an atmosphere more attuned to the spiritual needs of the grieving . . . Ensuring a family with limited means that they will be treated with dignity and respect, and accorded a proper funeral and a decent burial."

Will corporations—beholden to their stockholders and with a history of exorbitant profits—suddenly reduce prices at the church-endorsed mortuaries in order to fulfill the spiritual and charitable mission of the Catholic Church? That seems unlikely lacking announcement of such a plan. In fact, industry-watchers—including some troubled priests*—predict that the price of Catholic funerals will go up, up, up . . . especially where there is a "captive" clientele.

Why do they think so? According to surveys done by nonprofit funeral-planning societies, the prices at funeral homes and cemeteries run by Stewart Enterprises are almost always the most expensive, well above other neighborhood prices. Stewart's midyear 10-Q report indicates a 49.8% profit on funeral home operations and 33.3% on cemeteries. The company's goals include a "revenue growth of at least 20%."

The prices at places owned by SCI and the Loewen Group follow a close second. In the midyear report to stockholders (June '97), SCI claimed a 22.5% profit on funeral home operations and 37.6% profit on cemeteries. Loewen claimed 39.7% on funeral home operations and 33.6% for cemeteries.

Yes, the Church will benefit from the rent and income from these operations. But at what cost to its members? Caring Catholics might want to ask. Those who can afford to pay for an expensive funeral but would prefer to feed the hungry instead of greedy corporations MAY want to shop somewhere else for a funeral if they don't like what they find at the new "Catholic" mortuaries.


Loewen, Pine Ridge Memorial Park

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The following is an e-mail sent to FAMSA, posted with permission.

Dear Madam/ Sir,

Following is a copy of a letter I have tried to send to the Georgia Ethics Board. Please read it and let me know if there is anything that I can do to resolve this situation.

Sharon M. Smith

Date: Fri, 26 Jun 1998 07:26:57 +0000
To: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
From: Sharon Marie Smith
Subject: Pine Ridge Memorial Park
Cc: Pine.Ridge.Memorial.Park

Dear Madam/Sir,

I am not sure if you are the correct person to contact about my situation but I hope you can help.

My father died on February 1, 1998. On February 2, 1998 my mother and I purchased a marker for his grave at Pine Ridge Memorial Park. We selected a burial site based on the plans of the cemetery to build a fountain with benches near my father's grave. My father was a veteran of the Air Force and Navy. He was career military. Unfortunately, we did as many people do and did not make burial plans until my father died.

Upon arriving at Pine Ridge, the Manager —Tom— took us into his office to help us make decisions. We asked about the Veteran's Marker. We were told that they take a very long time to arrive at the cemetery (7 months at the minimum) [the VA reports 90 days] and that we would have to pay extra to have it installed at the cemetery and that the cemetery would not maintain a veteran's marker. Tom told us that if we bought a marker from them that my father's grave would not go unmarked and that they would place a temporary marker on his grave until the one we selected arrived. He told us he understood how we felt because he had lost his three-year-old son earlier the previous year and he would not have wanted his son's grave to go unmarked for a second. My mother told Tom that she could not pay the entire amount all at once. He told her that he would arrange for monthly payments and that it would not be a problem, he said that this way we could get the marker for the grave, have it installed, and make payments.

We selected and ordered a Pine Ridge Marker. The cost was over $4,000 for the internment and Marker. Several days after my father died I visited the grave and it was not yet marked. I decided to give it a little more time. During the subsequent two months I visited and still no marker (temporary or otherwise). I finally went to the office and asked about the marker. Here I spoke to Jack Stevenson. Mr. Stevenson told us that we had to order a marker in order to get a temporary marker. I told he we had ordered one and that it had been two months. I asked how long it took to get a temporary marker. I found out they have them in stock so there was absolutely no reason for my father's grave to go unmarked. The temporary marker was installed that day.

On Easter Sunday I visited my father's grave. Mr. Stevenson parked his car next to mine and, as I walked back to my car he approached me and asked me to fill out a Survey concerning the Cemetery. This seemed disrespectful to me and my family that our private moments would be invaded by a Cemetery Survey.

About a month later after visiting the grave I went to the office to find out about the Permanent Marker. Mr. Stevenson pulled the file and told me that they had a policy of not ordering markers until the total amount was at least half paid. I told him that this was not what Tom told us when we were sold the marker. Mr. Stevenson said that Tom no longer worked for them and that the situation we were in was not new and that Tom had put other families through the same thing. Fortunately, my mother had made some large payments in addition to the monthly payments and THE MARKER WAS HALF PAID FOR! The bottom line is that they were not keeping up with when to order the marker even by their standards — not the ones Tom told us about. Mr. Stevenson ordered the Marker. He told me it would arrive within forty-five days (By mid June, the marker would have now been on order approx. 5 months). Again I waited. On June 20, I called Pine Ridge and spoke to Dave Murray. He was very helpful. He told me that Mr. Stevenson no longer worked with families and that he would be glad to help me. I reviewed the story with him. He said he would look up the information on my dad's marker and call me back.

Dave Murray called back on Saturday afternoon and asked me if anyone had called me about the Marker. I said no. It seems that the Rosary Design my mother chosen as a border was not available on the size marker we had purchased and that call came approx. at the end of May ( I wonder if they were planning to call and ask us?). I asked him what should we do now because at this point I am thinking that we could have gotten the VA Marker for very little money out of pocket. The balance on the Marker we ordered was down to $1,400. I asked Mr. Murray about the Fountain near the grave site, and he told me no such plans were in the works. He then told me he would call the Marker company back, authorize the next larger size at no cost to my family because we had already been through so much. The Marker arrived on June 24. I was called to come to the Cemetery and approve the spelling, etc. before it was installed on my father's grave. The marker was very nice. Then Mr. Murray asked me how I wanted to pay the balance of $1,400. I told him my mother was making monthly payments and that she was two months ahead on those payments. He told me that they could not install the marker until it was completely paid for. I told him that at no time during all of my conversations with anyone at the Cemetery did anyone ever mention that I would have to have this completely paid for before the marker was installed. In fact, Tom told us the best way to proceed was to make monthly payments so the grave would not have to go unmarked and so we could have a permanent Marker long before the VA would ever send one. Then Mr. Murray called in Mr. Murphey and Mr. Murphey proceeded to explain that all Markers must be completely paid for before the marker was installed. (My mother was on a two year installment plan). I again repeated my story. He then told me that the administrative assistant Barbara was the only person who could make this decision and that I would have to contact her the next day, June 25. Mr Murphey asked if I could write a letter so they would have documentation if this request was denied by Barbara and they had to go to the "Board." Then they wanted me to sign off on the Marker approval. I would not. I told them I would not sign anything else until this matter was resolved. I also told Mr. Murray and Mr. Murphey that although they were not involved in the original plans and decision making that Tom represented this Memorial Park and that as consumers we had no choice but to take him at his word and we found out that his was not very good. I told them that we were involved in a relationship with them for a long time because my father was buried here and my family was close by and that we would be visiting frequently. It is disturbing and sad that the relationship seems to be destined to continue along the same vein.

I told Mr. Murphey that I would write a letter for him detailing the events that have transpired since February 2, 1998. I asked Mr. Murray about the fact that Tom had told us how we felt because his son had died earlier the previous year, and Dave Murray told me that this too was a lie.

Please help me to resolve this situation in any way you can. I feel that what Pine Ridge Memorial Park has done to my family and undoubtedly others is unethical, unfair, and even cruel considering the circumstances in which people seek them out for assistance with the death of a loved one.

Sharon M. Smith
4495 Brown Deer Lane
Acworth, Georgia 30101
770 975-7342

Note: I spoke with Barbara the morning of June 25, 1998. I again told her this story. She told me that the account balance was $1,200 (the day before it was $1,400) but that they would install the marker because of all that had occurred. She also told me that she was obligated to tell me that this is not their usual practice and that if my mother "got behind" in her payments that they would remove the marker.

June 28, 1998: No Marker installed yet.

July 2, 1998: The temporary Marker was turned facing the other direction when I went to the graveside today. I went to the office. The two ladies (one of whom is Barbara) told me that the maintenance man was probably installing the permanent marker and got called away so he put the temporary back on backwards. I asked them to call me today before 2:30 or after 6:00 and let me know why this occurred.


Loewen Veterans Scam

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Loewen Vet Scam

On a flyer picked up at the regional VA hospital:


The Military Gardens has been rededicated for veterans ex-service personnel and their families. Veteran space No Charge. Spouse and family members of veterans one half off burial space. Proof of honorable discharge required.

In the past ten years, thousands of veterans and their families have reserved their property so a limited number of spaces are still available Therefore, immediate preregistration is advisable. To receive your eligibility certificate and other valuable veterans information, fill out and mail coupon below or call:



Mail to:
Sunset Memorial Park
Cemetery & Funeral Home
2250 St. Anthony Blvd., N.E., Minneapolis, MN 55418

One WWII veteran and his daughter paid a visit to this Loewen-owned operation. The veteran and his wife live on a very limited social security income, so burial cost was a serious concern. The sales rep at Sunset told them that the national cemetery at Ft. Snelling was running out of space, so it was a good thing they came in. (This is a blatant lie. The VA predicts enough space to last another 50 years, and burial is free to veterans and spouses.)

The family was never given price information for all the available lots. Instead, they were shown to an area of high-priced lots (nearly triple the price of the least-expensive one quoted over the telephone to an inquiring caller three months later). The family didn't see any markings to indicate that what they were shown was the Military Gardens, but the whole experience was a bit overwhelming, they said. Telling them that urns and urn vaults were required, the sales rep cranked up the bill for the aging veteran and his wife—to over $3,400 for the burial of cremated remains on a single lot that was supposed to be "free"! No "other valuable veterans information" was forth-coming.

When this was brought to the attention of the regional VA office, one staffer called the cemetery/funeral home—"shopping" for the veterans' burial deal. He was told that he had to bring in discharge papers so they could be "sent to Washington, DC." When the staffer told the sales rep he thought they were already on file in St. Louis, the rep quickly replied, "Oh, yeah, that's the same place."

The angry staffer has since made sure all of the misleading flyers have been removed from the VA hospital, and the family is seeking the return of their initial payments.

If you feel you were misled about veterans' benefits and pressured into purchasing cemetery goods and services at a high price, give the FAMSA office a call: 800-765-0107.

Last Updated ( Wednesday, 30 January 2008 01:41 )

Loewen Steamroller

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Loewen Steam-roller

In Ponca City, Oklahoma, Loewen has made a bid to buy a local IOOF Cemetery, currently being run as a nonprofit operation as required by law. The County Commissioners must determine that a sale would not alter the operations before approving such a sale. At a recent meeting, one Loewen attorney was reported as saying: "Let's just talk in the 4th grade vernacular. We are talking about putting dead people in holes in the ground. That's not going to change whether Loewen is doing it or someone else is."

(A survey of a dozen Oklahoma cemeteries, however, shows that prices are, on average, $1,000 higher at chain-owned cemeteries.)

But there is opposition among the local Ponca City residents—among them, an independent monument dealer, another cemetery operator whose cemetery actually might benefit if Loewen moved in and raised prices, a Hospice social worker, and a woman who reports that Loewen pulled up rose bushes at the Rose Hills Cemetery in California (to reduce maintenance).

One has to wonder how Loewen can promise—as it has in its application—to continue to run the cemetery as a nonprofit operation. Or why anyone would believe such a promise. According to Loewen's Quarterly Report, June 30, 1997: "The Company's cemetery division . . . continued to show strong growth. . . . Profits from cemetery operations rose to $35.9 million, an increase of 70 per cent. Cemetery operating margins [profit] increased to 33.6 percent, compared to 31.2 per cent for the second quarter of 1996." Does Loewen want to own the IOOF cemetery out of the goodness of its heart?

Such goodness apparently does not extend to obeying the law. In the November 17, 1997 issue of Funeral Service Insider: "It's 'pretty much a done deal,' [the Loewen lawyer] predicts, dismissing the opposition. If not, he would advise his client to challenge the law in court or simply pay the $500 — the only fine for violating the law."

If you don't know who owns the cemeteries in your town, you might want to find out.


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