Funeral scam figures get prison sentences in St. Louis federal court

Nov. 14--UPDATED at 1:30 p.m. with final sentencing.

ST. LOUIS --Six people who ran a pre-paid funeral scam reported to have cost customers and insurors $435 million were sentenced here today to terms from 18 months to 10 years in federal prison.

--The owner, James "Doug" Cassity: nine years and seven months.

--His son, Brent Cassity: five years.

--The chief financial officer, Randall K. Sutton: seven years.

--A company lawyer, Howard A. Wittner: three years.

--An investment adviser, David R. Wulf: 10 years.

--A company official, Sharon Nekol Province, 18 months.

The Cassitys, Sutton, Wulf and Province were ordered by U.S. District Judge Jean Hamilton to pay restitution of $435 million, suggesting a recalculation of an estimate that as much as $512 million was lost by more than 97,000 customers. Wittner was ordered to pay back $10.5 million.

National Prearranged Services Inc., based in the St. Louis area, sold insurance policies that promised consumers they could spare their heirs high funeral costs. The money was supposed to be held in trust or in an insurance policy, but prosecutors said the company instead used the cash for the personal enrichment of company officers and others.

The business collapsed in 2008.

Doug Cassity, who bought National Prearranged Services in 1979, and his son, Brent Cassity, pleaded guilty this summer to various charges, as did Sutton and Wittner, both of Chesterfield, and Province, of Ballwin. The Cassitys live in Clayton.

Wulf, of St. Louis County, was convicted at trial in August on 18 counts, including bank fraud, wire fraud, wire fraud affecting a financial institution, and conspiracy. He has appealed his conviction.

One recent court filing says officials would argue that the scheme affected 97,783 NPS customers and 44 state guarantee associations and resulted in a $512 million loss, although at least defendant claimed the losses were overstated. Much of the recent court filings are sealed.

Although state insurance guaranty associations will cover the face value of the insurance that was supposed to pay full costs, funeral directors have told the Post-Dispatch that they have to cover the difference, and lose money on each service that was supposed to have been paid for in full.

The Cassitys pleaded guilty in July to mail fraud, wire fraud, money laundering and other charges.

Sutton pleaded guilty to charges of bank fraud, mail fraud, money laundering and insurance fraud.

Wittner pleaded guilty to two counts of making false statements intended to deceive insurance regulators, and to willfully permitting a felon to engage in the insurance business. He admitted lying to state regulators and concealing the source of money used to buy a medical malpractice insurer.

Province pleaded guilty to six counts of mail fraud, wire fraud and misappropriation of insurance premiums.

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