Attorney General's News Release

February 13, 2004

Johnson brothers to pay $60,000 to consumers, state to resolve Nixon lawsuit over pre-need funeral improprieties

Maryville, Mo. — Two brothers sued by Attorney General Jay Nixon for mismanaging pre-need funeral accounts will be restricted in selling pre-need plans and will pay more than $60,000 total in consumer restitution and costs to the state. Ross E. Johnson Jr. and Robert J. Johnson agreed to those conditions in consent judgments signed today by Nodaway County Circuit Judge Roger Prokes.

The brothers formerly operated funeral homes in Maryville and Stanberry. Nixon filed a lawsuit against the brothers and the estate of their late father, Ross E. Johnson Sr., last March. The lawsuit said the defendants violated Missouri law by not placing money for pre-need funeral contracts in separate pre-need accounts and by keeping excess money for pre-need funerals and not refunding it to customers.

"Pre-need contracts are purchased for peace of mind," Nixon says. "Separation of funds ensures that the money paid for a funeral will be there when the time comes. Missouri law requires this because of cases in the past where mismanagement of pre-need funds led to serious shortfalls."

Under the consent judgments, Ross Johnson Jr. will pay $48,007 to the state to be used as restitution for consumers who purchased pre-need plans but who did not have their funds placed in trust or whose funds were kept by Ross Johnson Jr. in excess of what he was owed. Ross also will pay $3,000 to the state to cover attorneys' fees and costs for the lawsuit. Robert Johnson will pay $7,522 in consumer restitution and $1,500 to the state.

Both brothers are prohibited from being registered as a pre-need seller on their own behalf or in any business in which they have an ownership interest or controlling interest in the management of business affairs. If they sell pre-need plans, they must establish a valid pre-need trust account and are restricted in how much money they can retain from the contracts.

The consent judgments allow the Johnsons to sell the properties that formerly housed the funeral homes, with a portion of the proceeds going to pay consumer restitution.

Consumers who have complaints about Critique Legal Services are encouraged to file a complaint with the Attorney General's Office by calling the consumer protection hotline at 1-800-392-8222 or filling out a complaint form online.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818