A St. Louis County woman has admitted her part in a Ponzi-like scam that prosecutors say bilked customers buying prearranged funerals out of $600 million.
Sharon Nekol Province, 69, of Ballwin, Mo., pleaded guilty Monday to six federal counts, including mail fraud, wire fraud and misappropriation of insurance premiums. Sentencing is set for Nov. 7. Five others are expected to go to trial in August in what the U.S. Attorney’s office in St. Louis calls one of the largest fraud cases ever prosecuted in the district.
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According to court documents, a now-defunct company — National Prearranged Services Inc. — sold prearranged funeral contracts in several states from 1992 until 2008. Under the program, customers would typically pay a single sum of up to $10,000 to cover the cost of the funeral service and merchandise.
The law required National Prearranged Services, based in the St. Louis suburb of Clayton, Mo., to keep the customers’ money in a secure trust or insurance policy. Federal prosecutors say money from as many as 150,000 customers was used to enrich the company’s officers and others, and that new business provided the money needed to pay for funerals that previous customers had paid for in advance.
Province began as an administrative secretary, but later became president of National Prearranged Services and vice president of its affiliate, Lincoln Memorial Life Insurance Co. Prosecutors say she didn’t make any decisions in the scheme but “deliberately shut her eyes” to the likelihood that fraud was being committed.
Her attorney, Joseph Green, said Province didn’t have a high school diploma or an insurance license.
“When you’re a corporate officer, you have a fiduciary obligation as an officer of the company that if something smells bad you have to investigate it further,” Green said Tuesday.
Trial is scheduled for Aug. 5 for the other defendants, NPS owner James Douglas Cassity, his son Brent Douglas Cassity, along with Randall K. Sutton, Howard A. Wittner and David R. Wulf. The men served as officers and directors of NPS and its affiliated companies.
Attorneys for the defendants did not respond to interview requests.
