| A West Virginia funeral home chain is being sued in a federal court in Iowa by an insurance company, claiming racketeering related to pre-need funeral money.
The owners of three WV funeral homes have been accused of bilking an insurance company out of more than $900,000 after selling and cashing in on pre-need funeral arrangements to more than 100 people who weren't actually dead, according to a lawsuit filed in federal court.
The owners are the Gatens-Harding Funeral Home in Poca.
The Hardings had also owned the Busch-Kimes Funeral Home in Elizabeth, Wirt County, but it may have been sold, the suit does not list that facility.
Between September 2012 and March 2015, the funeral home sold and cashed in more than $900,000 in pre-need funeral arrangements for 111 people who weren't actually dead, according to the lawsuit.
Gatens-Harding Funeral Home has locations in Poca, Charleston and Red House.
Pre-need funeral arrangements are sold by funeral homes as part of group life insurance plans, which are designed to fund the funeral services for those enrolled. In the event of the consumers' death, the insurance company distributes money to the funeral home to cover the costs of services and arrangements.
West Virginia's pre-need laws have historically held funeral homes accountable.
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Federal lawsuit alleges funeral home owners bilked consumer By Joel Ebert, Federal Courts Reporter, Charleston Gazette-Mail
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