This was not the ending that most expected. After decades of playing shell games with regulators and funeral homes, Doug Cassity accepted a plea bargain rather than go to trial. Brent Cassity also accepted a plea bargain, and the St. Louis Post Dispatch reports that attorneys for one of the remaining defendants were scurrying to
settlement
Wisconsin: Breaking the Settlement Logjam
By Bill Stalter on
In prior posts we have documented certain similarities between the old IFDA master trust and the Wisconsin master trust, and our Illinois clients have expressed sympathy for their colleagues to the north. But, key differences exist between the two master trusts, and the recent settlement agreement offered to Wisconsin funeral homes is an indication that…
Illinois Tax Blues: when a loss is not a loss
By Bill Stalter on
Posted in IFDA
For many Illinois funeral homes, April 15th served as a bitter reminder of Merrill Lynch and the financial losses suffered by the IFDA master trust. The final Merrill Lynch settlements (approximately $41 million) were received in 2012, and taxes had to be paid on those funds this past tax day. Funeral directors have questioned how…
In Too Deep to Turn Back: the IFDA’s response to Regions Bank
By Bill Stalter on
Posted in IFDA
In a recent article, Bruce Ruston provides a detailed account of the drama behind the IFDA master trust and its divesture of the key man insurance policies. It is a long, costly story about an organization that pushed the legal envelop in several directions with disastrous results: a master trust without a corporate trustee, insurance…
The Light at the End of the Tunnel: the IFDA/Merrill Lynch Settlement
By Bill Stalter on
For the past three and half years, many Illinois funeral homes teetered on the brink of financial crisis when the IFDA master trust was forced to write down the value of preneed accounts invested in a special tax exempt fund. As reported last week by the NFDA’s Memorial Business Journal*, the “new” IFDA has negotiated…
Comptroller: It’s Not My Call
By Bill Stalter on
For a brief period, the Illinois Comptroller posted a notice that sidestepped the inquiries made by funeral directors about the application of their Merrill Lynch settlements. The OIC website has since be revised.
One of the inquiries to the OIC may have involved whether the settlement funds could be applied to the litigation costs for…
The Merrill Lynch Settlement Funds: Some Strings Attached
By Bill Stalter on
Many Illinois funeral homes were surprised when they opened their mail this past week. The Illinois Department of Insurance wrote to each funeral home that was determined to have a claim in the $18,000,000 Fund established by Merrill Lynch for IFDA master trust participants. The letter included a check and a spreadsheet allocating the check amount…