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Press Release

Former funeral home director sentenced to federal prison for defrauding insurance company

For Immediate Release
U.S. Attorney's Office, Southern District of West Virginia
Defendant falsely represented that clients had died, then collected their pre-paid funeral insurance payouts

BLUEFIELD, W.Va. – A former funeral director who defrauded an insurance company was sentenced today to a year and a month in federal prison, announced United States Attorney Mike Stuart. Joel L. McGuire, 61, of Alderson, previously pleaded guilty to wire fraud. He was also ordered to pay $50,200.18 in restitution.

 

McGuire was the funeral director at Broyles-McGuire Funeral Home in Union in Monroe County. While serving as funeral director, McGuire also sold insurance policies that would pay for clients’ funerals upon their death. On August 31, 2012, McGuire submitted a claim, stating that a client had passed away on August 29, 2012, and that he had provided funeral services at a cost of $3,313.71. McGuire knew that the client was still alive and that he had not provided any funeral services. The insurance company paid McGuire $3,312.71 for the claim. McGuire also admitted that, as a result of his submission of numerous other false claims for clients that had not died, he received more than $50,000.

 

The West Virginia Offices of the Insurance Commissioner Fraud Unit conducted the investigation. Assistant United States Attorney Eric Bacaj is in charge of the prosecution. Senior United States District Judge David A. Faber imposed the sentence.

 

Updated January 9, 2018

Topic
Financial Fraud