Plea deal offered to seven in funeral fraud case

ST. LOUIS -- Seven defendants accused in a pre-arranged funeral scam that prosecutors say bilked customers out of as much as $600 million have been offered plea deals that would allow them to avoid potential life sentences.

The deal would require five to 10 years in prison in exchange for guilty pleas. The case is being handled in federal court in St. Louis.

U.S. Attorney Richard Callahan cited the high cost of trials that could last three months.

Prosecutors say the now-defunct National Prearranged Services Inc. operated like a Ponzi scheme, affecting as many as 150,000 customers who paid up to $10,000.

Investigators allege NPS and its officers and directors played to consumers' fears by promising to prevent heirs from being burdened by high funeral costs.

Instead of investing the money, they allegedly diverted the money to their use.

The company stopped selling funeral policies in 2008 amid scrutiny by investigators. NPS liquidated later that year.

One former employee, 69-year-old Sharon Nekol Province, pleaded guilty earlier this month. Sentencing is Nov. 7.