Million Dollar Grave Robbing Case Involves Three States

Clayton Ray Smart, a gas and oil speculator from Oklahoma, was apprehended on Thursday after taking $70 million dollars set aside for cemetery upkeep on several Michigan cemeteries he owned. He used the money to then purchase funeral homes and cemeteries in Tennessee. His business dealings in both Tennessee and Oklahoma are now under investigation after what occurred in Michigan came to light. "Under Michigan law, a percentage of every such sale must be placed in trust funds to perpetually maintain the cemeteries and to provide consumers the burial merchandise when needed." (Sinclair) State officials in Michigan hope that his arrest will help them recover the $70 million dollars diverted from the cemetery trusts funds.

However, Smart also faces criminal charges outside of Michigan as well. In Tennessee, officials have discovered $20 million dollars missing in trust funds there. In addition, Smart is not the only one facing criminal charges. The previous owner of the 28 cemetery locations Smart purchased in Michigan, lawyer Craig R. Bush. "Previous court filings accused Bush of abandoning his fiduciary duty to protect the trust funds and taking part in a scheme to personally profit at the expense of innocent consumers." (Sinclair) According to documentation in the case, no money changed hands in the deal. Instead, Smart kicked back $20 million dollars in cemetery funds and promised to absorb Bush's debts tied to the cemetery properties, which amounted to $6.5 million.

The most disturbing aspects in this particular case are not only the magnitude of the crime, which involved 28 cemeteries all over Michigan, but the severity of the breach of public trusts as well. Not only were the literal trusts funds of various cemetery properties in Michigan and Tennessee raided, the trusts of consumers were lost as well. In many cases, people who were making purchases as the cemetery properties and the funeral homes (in Tennessee) were already vulnerable at the time of purchase. While many consumers now preplan their final expenses, that isn't always the case, and plenty of money was stolen right from grieving families. These crimes were not just against consumers, but against the dead as well. When cemetery property is purchased, it is understood that a portion of the purchase price will be set aside for the perpetual care of the cemetery property.

Smart surrendered to authorities in Oklahoma on Thursday. It is unclear how far along Tennessee officials are in their investigation of Smart's businesses there. In addition, there is no word as to whether or not his business interests in Oklahoma are under investigation as well. Concerned consumers can find a list of affected Michigan cemeteries on Mlive.com. State officials are currently running the cemeteries.

Sources -

Sinclair, Norman. The Detroit News. "'He stole money from the dead,' Cox says."
http://www.detnews.com/apps/pbcs.dll/article?AID=/20070427/METRO/704270386/1003

Mlive article. "AG Investigation Reveals Up to $70 Million Embezzlement in Cemetery Trust Fund Case."
http://www.mlive.com/prnewswire/index.ssf?/cgi-bin/stories.pl?ACCT=MI2&STORY=/www/story/04-26-2007/0004574787&EDATE=Apr+26,+2007