Chesterfield Men Enter Guilty Pleas in Pre-Arranged Funeral Scam

Two Chesterfield residents plead guilty Tuesday to charges that they helped orchestra a Ponzi-like scam involving the sale of pre-paid funeral services that could end up costing as much as $600 million.

Randall Sutton, the former president of National Prearranged Services, admitted to counts of mail fraud, wire fraud and money laundering charges while the company’s attorney, Howard A. Wittner, plead guilty to charges of making false statements for the purpose of deceiving insurance regulators.

Sentencing for the two men is set for Nov. 7, according to a press release from federal investigators. Sutton could face up to seven years in prison and Wittner up to five..

The complicated scheme involved the men and several other defendants extracting funds that they had led customers to believe would be held in a trust or used to purchase an insurance policy that would cover eventual funeral and burial costs.

In essence, this meant that they looted the company’s coffers and then deceived regulators, funeral homes and their customers about how the money was being spent. In 2008, National Prearranged Services collapsed after it was unable to meet the mounting debts it had incurred.

In addition to Sutton and Wittner, the company’s former owner James “Doug” Cassity and his son Brent Cassity, both of Clayton have also plead guilty to charges relating to the case. Doug Cassity could face up to 115 months in prison and his son up to 5 months. Another company official, Sharon Nekol Province, of Ballwin, has also plead guilty and is looking at three years or less.

That leaves only one more defendant remaining, company investment advisor David Wulf. If Wulf does not accept a plea deal, his trial is scheduled to go forward on Aug. 5.

Prosecutors have said that the scam affected up to 150,000 customers in Missouri, Illinois and at least eight other states who paid up to $10,000, according to an article in the St. Louis Post-Dispatch. The scheme could eventually cost $450 million to $600 million as customers die and the costs for funerals pile up.

The company stopped selling funeral policies in 2008 after Missouri and other states began scrutinizing its business practices, and Texas forced the company’s liquidation later that year.