Attorney General's News Release

July 13, 2004

Nixon obtains injunction against funeral home operator who collected on preneed contracts by falsely claiming people were dead

Unionville, Mo. — A Unionville funeral home operator who claimed people who are still alive were dead may no longer sell preneed funeral contracts under a permanent injunction obtained by Attorney General Jay Nixon. An investigation by Nixon revealed that Roger Newman, owner of Newman Funeral Home Inc., made false claims on preneed funeral contracts, claiming the beneficiaries of the contracts were dead, when in fact, they were very much alive. Newman retained the proceeds from the claims for his own use. Newman Funeral Home was recently administratively dissolved by the Missouri secretary of state.

In approving a consent permanent injunction, Putnam County Circuit Judge Andrew Krohn found Newman violated numerous Missouri consumer protection and funeral statutes. In addition to making false claims, Newman sold consumers preneed funeral contracts, collected money from them and pocketed the funds, instead of purchasing the insurance needed to fund the contracts.

When a consumer purchases a preneed funeral plan, the plan is purchased from a registered preneed seller. The plan names the registered funeral home, which agrees to provide the funeral services at the time of the consumer's death.

"This funeral home operator trampled on the trust of consumers and flagrantly violated state laws regarding preneed funeral contracts," Nixon says. "This injunction will protect northeast Missourians at a time when they want and need the utmost respect."

The court revoked Newman's registration as a preneed funeral contract seller and preneed provider and ordered him to stop selling preneed contracts and providing funeral services to fulfill preneed contracts. Newman also may not sell preneed funeral contracts in the future. The order also states Newman must stop the use of unlawful, unfair and deceptive acts.

Consumers who have an existing preneed contract that names Newman as their funeral provider should make arrangements to name a new funeral home to provide services, the Attorney General advises.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818