Families whose prepaid funeral money vanished say P.E.I.'s legislation failed them
CBC
P.E.I. families recently briefed on an insolvency trustee's proposal to compensate them for only some of the money they lost when prepaid funeral arrangement funds vanished are upset more isn't being done to help them.
At least two families who spoke to CBC News feel the P.E.I. government should step up and pay for any losses beyond what the insolvency process will give them, pointing out that the Pre-Arranged Funeral Services Act has been in place under the Department of Justice and Public Safety since the 1980s.
Money to fund dozens of prepaid funerals was supposed to be held in trust by the owner of Dawson Funeral Home Ltd. in Crapaud, P.E.I.
But owner Lowell Oakes is now facing 66 fraud charges, which are still being dealt with in criminal court, as well as a number of claims in small claims court. His funeral home licence was revoked in March 2022, and he was also fined $10,000 at that time.
Dawson Funeral Home has been closed for a year now, and the premises are in the process of being sold to help pay off some of the company's debt. Insolvency trustees have told creditors that when all of the personal and corporate assets are liquidated, there will be enough money to cover only about one-third of their original investment.
Debbie Matters, as well as Joe and Mary Beth Amelia, are representing elderly family members who no longer have the prepaid funerals they were counting on. They are calling for the government to help victims.
Matters is helping her parents, Mary and Raymond Matters, who in 2014 paid more than $18,000 for prearranged funerals.
"I think it's really disheartening for a lot of people and really challenging," said Matters, who was one of the many family members who met recently with insolvency trustees.
The Amelias are speaking out for 92-year-old Margaret Gallant, Joe's stepmother-in-law, who lives with them. Gallant paid Dawson $4,200 for a prearranged funeral in 2011.
"The law was on the books," said Joe Amelia. "There was no enforcement, there was no investigation.
"These people were taken advantage of ... the P.E.I. government should pay.
"We should not have to beg, fight and sue for this."
His wife said inspections should have been happening every year, to verify trust accounts were in place.
Mary Beth Amelia said the families are not happy with the proposal to pay people back one-third of what they had paid, adding: "They thought it was all safe and secure."
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