A scam that started in Missouri destroyed lives across the country. Close to 100,000 people used a Clayon company to pre-pay for their funerals but were left without a dime to pay for their final expenses.
Now, eight years after the owners of National Prearranged Services went to prison, their victims are still hurting, and reaching out to the I-Team for help.
For 44 years, Raul and Ruby Montes were inseparable.
They were living in California until one day Ruby wanted a change of pace.
"Mom says 'I want to go back home and dad you come if you want but I'm going to go anyway,'" said Johnny Montes, the couple's son.
Home for them was Missouri, where they had raised their family and where they wanted to finally rest. Ruby passed away first, leaving Raul to grieve and worry.
"He wanted to make sure everything was taken care of, that we didn't have to worry about it," said Montes.
So Raul bought a pre-arranged funeral policy. For $4800 he was told all the details were covered.
"He thought 'I can be with mom when the time comes and everything will be taken care of,'" said Montes.
Unfortunately, that was an illusion.
Just as Raul was diagnosed with stage 4 cancer, a crushing blow was delivered to his family.
"We found out the policy was no good," said Montes.
That's because it was backed by a Clayton based company: National insurance pre-arranged services (NPS).
"Consumers are left holding a piece of paper that's worthless," said Donald Otto, Executive Director of the Missouri Funeral Directors and Embalmers Association.
Otto said the company was actually a Ponzi scheme, with customers' premium money spent on risky investments and employee's personal expenses.
It's estimated the company stole more than $600 million from consumers around the country.
But Otto said that for the Montes family, the situation Is even worse.
"The money got diverted, illegally, before it even got to the insurance companies," said Otto.
That's because the Missouri funeral home that Raul bought the policy from took their money and never sent that or any paperwork to the insurer.
The Attorney General charged the home's owner with 10 felony counts and also shut down the business.
"There's a chance there are no funds to reimburse anyone," said Otto.
Now, as their father's health deteriorates, Raul's family is faced with a sad prospect.
"Last thing you need with an emotional loss is a financial one, too. I just can't fathom how this could happen to the elderly. How someone can do this without a conscious," said Montes.
NPS was liquidated in 2008.
Liberty is now responsible for collecting all premiums, administering the prepaid funeral contracts and insurance policies, providing customer service and paying all claims reported on or after November 1, 2017.
If you have questions about an NPS policy contact the number(s) below.
CONTACT INFORMATION
Telephone: Toll Free at (800) 334-3851 or (512) 328-0075
Please note that call volume is high at this time. We appreciate your patience.
Please know that our staff is working diligently to assist you with your questions.
Fax: (512) 328-0072 (512) 329-7167
DEATH CLAIMS
Lincoln Memorial Death Claims
Claims Department
P.O. Box 160050
Austin, TX 78716
claims@lincolnmemoriallife.com
Memorial Service Life Death Claims
Memorial Service Life Insurance Co. covered obligations were assumed by Investors Heritage Life
Insurance Co. on July 1, 2011. All claims must be submitted to Investors Heritage Life Insurance
Company by fax at (502) 875-7084. For telephone inquiries, please call (800) 422-2011.
GENERAL CORRESPONDENCE
Lincoln Memorial / NPS
P.O. Box 160050
Austin, TX 78716
info@lincolnmemoriallife.com
Missouri Insurance Guaranty Association
Telephone: (800) 769-6320 or visit their website http://www.mo-iga.org
ADDITIONAL HELP
Here are some additional issues to consider from the Federal Trade Commission before prepaying for funeral goods and services:
- What are you paying for? Are you buying only merchandise, like a casket and vault, or are you purchasing funeral services as well?
- What happens to the money you’ve prepaid? States have different requirements for handling funds paid for prearranged funeral services.
- What happens to the interest income on money that is prepaid and put into a trust account?
- Are you protected if the firm you dealt with goes out of business?
- Can you cancel a contract and get a full refund if you change your mind?
- What happens if you move to a different area or die while away from home? Some prepaid funeral plans can be transferred, but often at an added cost.
- Be sure to tell your family about the plans you’ve made and where your documents are located.
