State seizes financial records from Crockett funeral home for a - KTRE.com | Lufkin and Nacogdoches, Texas

State seizes financial records from Crockett funeral home for alleged misappropriation of funds

Source: MGN Online Source: MGN Online
CROCKETT, TX (KTRE) -

Texas Banking Commissioner Charles G. Cooper has issued an emergency order to seize prepaid funeral records from the family that owns and operates the Callaway-Allee Funeral Home in Crockett.

The commissioner issued a consent order against two of the family members back in September based on allegations that Belinda and Randy Allee “misappropriated 60 [prepaid funeral benefits contracts] funds totaling $380,270.30 over an almost 15-year period.”

According to a Dec. 1 press release from the Texas Department of Banking, the emergency seizure order was issued on Oct. 23. The order was issued against Belinda Allee, James R. “Randy” Allee and James “Jamie” Allee II. Belinda Allee and Randy Allee are the former owners of the Callaway-Allee Funeral Home, and Jamie Allee is the current owner of the funeral home.

The Texas Department of Banking's investigation revealed that Belinda and Randy sold 60 prepaid funeral benefits contracts from 1998 to 2013, but failed to transfer the money to the insurance company that was to provide policies to provide the benefits at the time of need.

The consent order required Belinda and Randy Allee to pay restitution to the insurance company, prohibited them from selling any more prepaid funeral benefits, and ordered them to pay a penalty of $120,000.

“After new evidence surfaced indicating that the Allees misappropriated funds from additional prepaid funeral benefits contracts and failed to inform the Texas Department of Banking about them, the commissioner issued the emergency seizure order,” the press release stated. “The emergency seizure was based on the commissioner's findings that Belinda and Randy Allee sold and received funds for at least two other prepaid funeral benefits policies in 1994, but the funds were not submitted to the insurance company until 2014.”

The press release stated that in addition to being a violation of Texas Finance Code Chapter 154, Belinda and Randy Allee's actions contradicted their earlier sworn statements that they had surrendered all records of prepaid funeral benefits contracts “for which the funds were not properly handled by the department.”

The Texas Department of Banking seized the funeral home's prepaid funeral records on Oct. 27. However, the seizure does not affect the funeral home's ability to provide the funeral benefits.

The emergency seizure order became final and non-appealable on Nov. 27, according to the press release.

Belinda and Randy Allee were the owners of the Callaway-Allee Funeral Home from 1981 until July 22, 2013, when they sold the funeral home to Callaway-Allee Holdings, TLC.

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