Restore people's pre-paid funeral money 'before they're dead,' group asks province
CBC
A group of Prince Edward Islanders is frustrated the province will not respond to their requests to be reimbursed for pre-paid funerals, in a case where the funeral director is currently being tried for fraud.
Dawson Funeral Home closed in August 2021, and RCMP began investigating complaints that clients could not get back money from pre-paid funerals.
In July of last year, RCMP charged former funeral director Lowell Oakes with 66 counts of fraud. He was due to appear in P.E.I. Supreme Court most recently on April 11, but the case was adjourned to May 9.
Joe Amelia, representing a group of 25 of the 66 alleged victims, told Island Morning host Laura Chapin the province bears responsibility for any lost money, and should pay up.
The province says it will not comment because the case is before the courts. None of the allegations against Oakes have been proven in court.
"The court case has to do with Lowell and fraud. It has nothing to do with getting these people their money back before they're dead," said Amelia.
"We're dealing with elderly people .. Some have dementia. You know, they believe their funerals are paid for. It's a horrible situation that was entirely preventable."
Insolvency trustees have told creditors there is only enough money to cover about one-third of their original investment.
The legal responsibilities of funeral directors for pre-paid funerals are covered by the Prearranged Funeral Services Act.
The act stipulates funds for a prearranged funeral must be placed in a trust account within 30 days of signing an agreement with a client. The first suggestion that Oakes might not have been doing this came in August 2021, when the Prince Edward Island Funeral Services and Professions Board performed a routine inspection of the business.
The board revoked Oakes' licence in May 2022 and fined him $15,000.
As the author of the legislation governing pre-paid funerals, the government bears responsibility for money that was lost, Amelia said.
"The man's books were not checked for 25 years. That's where the ball got dropped," he said.
"There was never any thought put into, 'What happens if something goes wrong?' The government passed the legislation, so that makes it their responsibility."
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