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Governor, Comptroller Spar Over Funeral Fund
The governor's campaign is accusing Comptroller Dan Hynes of a slow response to problems in a trust fund for pre-need funerals.

The Illinois Funeral Directors Association was licensed in 1980 to operate a pre-need trust fund. It began engaging in risky, high-fee insurance policies in 1985. An audit by the comptroller’s office in 2001 discovered the fund was losing money, but it took five years to act.

Hynes acknowledges it took a while to investigate, but he says he wasn't interested in generating publicity during the course of the investigation.

Losses to funeral homes amounted to $100 million, and consumers are at risk if the fund is shut down and the funeral home from which a funeral was purchased goes out of business. Quinn's campaign says this shows Hynes is not a careful financial watchdog. Hynes says his office discovered the problem and solved it.

Hynes has given trustees until May to re-pay $10 million in excess fees. His is also considering seeking criminal prosecution, if fraud can be proved.

Hynes also says that while the comptroller's office regulates pre-need sales, it doesn't regulate the trust fund. The fund itself is regulated by the Illinois Department of Financial and Professional Regulation.

(Illinois Radio Network)
01 07 10 by Newsroom
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