Feds allege funeral scheme could cost $600M

JEFFERSON CITY, Mo. -- The former president of a funeral contract company is facing fraud charges for a scheme that prosecutors say could cost more than $600 million.

Randall Sutton is to be arraigned Aug. 12 in federal court in St. Louis. He was president of National Prearranged Services Inc. and a director of two affiliated life insurance companies.

The companies received advance payments for funerals with the promise to pay for the services upon the customers' deaths. The indictment says Sutton and others altered documents and used financial transactions to drain customer trust funds, then sent funeral homes statements showing false account balances.

An attorney for Sutton says he will plead not guilty.

Sutton also is one of dozens of defendants in a federal civil racketeering suit that mirrors the allegations in indictment.