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
trial
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…
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…
The NPS Civil Trial: our first glimpse of the legal arguments
By Bill Stalter on
Posted in Uncategorized
In anticipation of a February trial date, a group from the fiduciary bank defendants has filed a motion for summary judgment in the Federal court that will try the NPS civil lawsuit. The intent of the summary judgment request is to narrow the scope of claims made by the Special Deputy Receiver. The pleadings filed…
The NPS Criminal Trial: Vicarious Liability?
By Bill Stalter on
David Wulf may stand alone in the crosshairs of the criminal prosecutors, but his fate will impact the NPS preneed trustees (and possibly other registered investment advisors who manage death care funds).
Mr. Wulf had a situation that is unique from what existed in Illinois, Wisconsin, and Tennessee, but is familiar to other death care…
Coming This August: The Nuremberg Trial
By Bill Stalter on
Posted in NPS/Lincoln
Once again, I have spoken too quickly.
After lamenting to the Memorial Business Journal that the NPS plea bargains will deprive consumers and the industry the opportunity to hear how Doug and his crew perpetrated so many frauds, the sole remaining NPS defendant may grant my wish. As the Funeral Service Insider reports that Herr…
The Cassity Plea: A new shell game?
By Bill Stalter on
Posted in NPS/Lincoln, Preneed
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…
Under New Management!
By Bill Stalter on
Posted in Cemeteries
Kansas regulators want to be able to put a new sign in front of a troubled Hutchison cemetery: Under New Management! And, it would please the state of Kansas and the city of Hutchison if that new management team does not include them.
State and local officials appreciate that the grave lot owners, and…