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Robert McDermott, the owner of the Robert P. McDermott Memorial Home, was charged Monday and accused of defrauding residents involving prepaid funeral services.

(R. Michael Semple/The Tribune-Chronicle)

WARREN, Ohio — Three funeral home directors were charged Monday with defrauding the elderly out of hundreds of thousands of dollars involving prepaid funeral services.

A Trumbull County grand jury accused Robert P. McDermott as well as Patrick and Robert McClurkin in secret indictments related to their businesses. McDermott ran the Robert P. McDermott Memorial Home in Niles, while the McClurkins had the McClurkin Funeral Home in Girard.

Each is charged with racketeering, grand theft and theft from an elderly person of more than $150,000, as well as the violations of pre-needs funeral contracts. Bond was set at $100,000 for each.

The charges stem from investigations by the Ohio Board of Embalmers and Funeral Directors, who accused the businesses of accepting pre-payments for future funeral services and placing the money into accounts for the funeral homes and then spending it — rather than properly saving it for the customers' needs.



Under Ohio law, funeral directors must take the payments and place them in annuities, insurance policies or trusts. State law says funeral homes cannot collect the money until a person dies.

In documents, the state board estimated that the McClurkins defrauded customers out of about $400,000 from customers between 2005 and 2012. Earlier this year, it suspended the funeral and embalmers licenses of the McClurkins. The state board estimated that McDermott defrauded customers out of about $150,000.

In each case, the board said, "This is a clear violation of all Ohio laws regarding the proper placement of monies received in payment of pre-need funeral contracts and was, therefore, referred to the Trumbull County prosecutor's office for possible criminal charges.''

Attorney Harry DePietro, who represents Patrick McClurkin, 47, scoffed at the allegations.

"The charges are excessive and exaggerated,'' DePietro said. "At most, it's improperly handled funds, rather than fleecing or stealing money from people.''

Michael Scala, the attorney for McDermott, 51, also called the charges excessive, adding that "the truth will come out at trial.'' Robert Shaker, the attorney for Robert McClurkin, 49, declined to comment.

Charles Morrow, the chief of the criminal division of the Trumbull County prosecutor's office, presented the case to the grand jury after the panel heard evidence from various witnesses, including Vanessa Niekamp, the executive director of the state board. She told The Plain Dealer that she testified before the secret panel in September. The grand jury's indictments were unsealed Monday. Niekamp could not be reached.

In the fall, forensic accountants from Ohio Attorney General Mike DeWine's office joined the investigation after Trumbull County Prosecutor Dennis Watkins sought the help, a spokesman said. Police in Niles and Girard led the investigations.

The cases are similar to another high-profile case involving funeral homes. In September, a Montgomery County judge sentenced Scherrie McLin to four years in prison. McLin pleaded guilty to theft charges involving the McLin Funeral Home, where she was accused of misappropriating $243,483 from more than 70 customers.

"These cases are very rare,'' said Larry Morgan, who teaches mortuary law at the University of Central Oklahoma. "Once in a while it does happen, but it is not common, not at all.''

Plain Dealer news researcher Jo Ellen Corrigan contributed to this story.