Final arguments were heard in the NPS civil trial this past Friday. With the SDR having presented evidence through the prior Friday, the defendant trustees presented their case in less than a week. This may reflect that the NPS trustees had viewed their duties as having been defined by Chapter 436 as relatively low. As
NPS/Lincoln
NPS Trustees: Pre-acceptance Due Diligence
By Bill Stalter on
The Office of the Comptroller of the Currency (the OCC) supervises the fiduciary activities of national chartered banks, and in February, updated the guidelines used by its examiners. The “Personal Fiduciary Activities” booklet includes a section on pre-acceptance due diligence that fiduciaries should conduct before agreeing to serve as trustee for an account. …
Finding Fault with Chapter 436: The NPS Civil Trial
By Bill Stalter on
The NPS civil trial has completed its third week, and jurors probably face another four weeks of witness testimony. First from the NPS receiver, and then from the defendant trustees, the jurors are hearing two very contrasting theories of what fiduciary duties were owed by the NPS trustees. Up until a few weeks before the…
Groundhogs Day 2015: Six Weeks of NPS Civil Trial
By Bill Stalter on
Posted in NPS/Lincoln
The National Prearranged Services civil trial is scheduled to begin this week, and trial briefs have been filed with the Court. The briefs outline the arguments that each party plans to prove during the course of the trial. It is our understanding that the Special Deputy Receiver has settled with all defendant trustees except Allegiant…
Questions for the Jury: the mirror trust account
By Bill Stalter on
A recent order issued by the Federal Court trying the NPS civil suit referenced a mirror trust employed by the defendant bank (12-31-14 Order – Comerica MSJ ). To facilitate the trading of investment securities, a brokerage account is established with a firm that can administer the transactions more efficiently than the fiduciary institution. …
Question for The Jury: Exculpatory Clauses and Preneed Investment Supervision
By Bill Stalter on
It is common for master preneed trusts to have investments directed by an independent fund manager. The pooling of smaller trusts allows funeral directors to achieve the critical mass needed to engage professional asset management. When investment functions are delegated, the trustee typically wants to be relieved of the supervision and liabilities that accompany those…
Getting Personal: liability and the preneed trust officer
By Bill Stalter on
Earlier this week, the Federal Court that is to try the NPS civil lawsuit next month issued an order (Order denying Morisse JOP Mtn) that will raise red flags for the banks that serve as preneed trustees. In denying the motion of an officer of Allegiant Bank, Judge Richard Webber held that the…
Preneed Trust: Is it the Consumer’s Funds?
By Bill Stalter on
Attorneys are currently arguing this issue before a Federal court in St. Louis. While the NPS civil trial does not begin for another six weeks, both the SDR and the defendant trustees want to resolve the question of who is a beneficiary of a preneed trust under Missouri law. The SDR is arguing that…
Testimony Guidelines for the NPS Experts
By Bill Stalter on
Posted in NPS/Lincoln
In August, litigants to the NPS civil trial were required to file expert opinion reports with the court. Initially, there were essentially 8 defendant banks, and most had retained one or more experts to testify at trial. As a consequence, a plethora of expert reports were filed with the court. Many of the experts offered…
A Legacy of Disgrace: the NPS Management Team
By Bill Stalter on
Posted in NPS/Lincoln, Uncategorized
Randall K. Sutton, former President and CEO of National Prearranged Services, died in prison on December 8th. Accordingly to pleadings filed in the NPS criminal and civil lawsuits, Mr. Sutton played a central role in the company’s operations. Another pivotal player in the Cassity schemes, Howard Wittner, was recently released from Federal…