MARCH 23, 1998 - Under a signed, stipulated agreement, the Michigan Department of Consumer and Industry Services (CIS) has revoked the operating registration of a Grand Haven cemetery because of multiple violations of state laws.
CIS Director Kathleen Wilbur said that formal charges against Pine Ridge Memorial Gardens, Inc., include failure to make the cemetery's books available for a state audit, failure to make deposits to or cover deficits in the trust funds, and failure to provide the state with annual reports or trust fund accountability. State investigations found deficits of nearly $86,000 in the merchandise trust account and $57,000 in the endowed care trust fund.
"These are serious charges that warrant immediate action," said Wilbur. "This company not only has broken several state laws, but the public trust as well, and left empty-handed many people who paid in good faith for goods and services."
Under terms of the revocation, Pine Ridge must:
- Immediately halt the sale of cemetery plots, merchandise and services, while completing its obligations under all previous sales. It must conduct burials for any current owner of a cemetery plot and continue regular maintenance.
- Pay a penalty of 10 percent of the trust deficit if the cemetery is not sold in 90 days to a buyer acceptable to the cemetery commissioner. If not sold in 90 days, an added monthly penalty of 1.5 percent month will be assessed until the trust deficits are paid in full. No withdrawals can be made from the trust funds and interest must remain in the trusts until the deficit is eliminated
- Refund, at the purchaser's request, all monies received for the sale of undeveloped gardens or incomplete structures that have been incomplete for 48 or more months from the date of the first sale.
- Provide two lists of outstanding items covered by the merchandise trust fund, prepared by a Michigan licensed certified public accountant with no relationship to the cemetery. One list will show items fully paid by consumers, and the other items not yet paid in full.
Andrew L. Metcalf, Jr., Director of the CIS Office of Commercial Services, said the state's action was based on consumer complaints and inquiries from area legislators and the media.
"Both State Rep. Jon Jellema of Grand Haven and State Sen. Leon Stille of Spring Lake provided us with substantial constituent documentation about Pine Ridge's illegal activities," Metcalf said.
The Pine Ridge registration revocation was served upon the owner Lawrence Walburg, Friday. March 23, 1998.
For more information, call Acting Cemetery Commissioner Suzanne Jolicoeur at (517) 241-9251.
Read more Michigan Department of Consumer & Industry Services press releases.