American Mausoleum Q and A
Questions and Answers Regarding American Mausoleum in Peoria
Q: The owners of American Mausoleum have filed for bankruptcy. What happens now?
The Comptroller's Office will be working with the bankruptcy court, the Peoria County State’s Attorney and the former license holder to do everything in our power to ensure consumers are protected.
The Comptroller's Office responsibility/role involves the trust funds and protection of the consumers who have money entrusted for future goods and services.
A thorough audit of the trust funds was conducted to ensure all of the consumer funds that should have been entrusted were properly entrusted. There is no evidence at this time that any funds were not properly entrusted.
The Comptroller's Office has revoked the owner's licenses to operate the mausoleum based on the owners indicating the business is insolvent in their bankruptcy filing.
The Comptroller's Office, represented by the Attorney General's Office, filed paperwork in Peoria County Circuit Court asking that a limited receiver be appointed in state court for the trust funds. The receiver then would make a determination regarding the best way to proceed. This receiver is different than the trustee appointed in federal bankruptcy court who would oversee the bankruptcy. It is also different than a receiver who would be operating the Mausoleum on a day-to-day basis.
On June 23, 2008 the Court granted the Comptroller’s petition and appointed a limited receiver. The limited receiver made a report to the Court on July 7, 2008. The next hearing in Peoria County Circuit Court is scheduled for Monday, August 11 at 3:00pm.
The Peoria County State’s Attorney joined the court case filed by the Comptroller’s Office. The State’s Attorney obtained an order from the judge allowing Peoria County to provide limited access to the Mausoleum building and to perform routine maintenance such as mowing the grass. For the time being, the Mausoleum will be open from 10 a.m. to 6 p.m. on Saturdays and Tuesdays. For more information contact the State’s Attorney’s office at 309.495.5144.
Recently, the Bankruptcy Trustee provided notice that he intends to “abandon” the property of the mausoleum. This is a technical term used in bankruptcy meaning that the Trustee “believes that there is no equity in the real estate for the benefit of the bankruptcy estate and that, in its present condition, it is a burden to the bankruptcy estate.” If the Trustee abandons the property, then ownership of the property may have to be determined by the courts. This does not impact either the limited receiver’s control of the trust funds or the ability of the State’s Attorney’s office to provide access to the mausoleum.
Q: Can people get into the mausoleum to see their loved ones or try to remove the remains?
A: When the owners filed for bankruptcy, they locked the facility and ceased operations. There is no indication that the Wiltons intend to revive the mausoleum as a business, and in fact, their filing under Chapter 7 of federal bankruptcy laws would indicate their intent to dissolve the business.
The Peoria County State’s Attorney joined the court case filed by the Comptroller’s Office, and obtained permission from the judge to allow limited access to the Mausoleum building. For the time being, the Mausoleum will be open from 10 a.m. to 6 p.m. on Saturdays and Tuesdays. Another order allows for the removal or entombment of remains by arrangement. For more information contact the State’s Attorney’s office at 309.495.5144.
Q: Who can I talk to in the Comptroller's Office about this?
A: Consumers within Illinois can call the consumer hot-line toll-free at 1.877.203.3401. If you are calling outside Illinois, please call the general number at 312.814.2451. If consumers prefer, they can e-mail the staff at ccbt@mail.ioc.state.il.us
If consumers get voice mail for the hotline they should leave a message and a staff member will call them back. Staff members get calls from consumers all over the state with a variety of questions.
The staff is collecting detailed information from the consumers who call. If a consumer has a prepaid contract for goods and services not yet delivered, bills of sale, etc., he or she will be asked to provide the staff with a copy of that contract.
Q: What role does the Illinois Comptroller's Office have in this situation?
A: The Comptroller's Office jurisdiction is over the trust funds and protection of the consumers who have money entrusted for future goods and services, not the day-to-day operations of the facility. This jurisdiction is separate from the bankruptcy filing in federal bankruptcy court. We will be working with the bankruptcy court, the Peoria County State’s Attorney, and the former license holder and do everything in our power to ensure consumers are protected.
Q: Can the trust funds be taken to satisfy creditors at bankruptcy?
A: No. Both the Cemetery Care Act and the Pre-Need Sales Act have provisions for bankruptcy of a licensee. Both laws provide that the trust funds are NOT assets available in a bankruptcy proceeding and CANNOT be used to satisfy the debts of the licensee.
Q: What is the Comptroller's Office doing to protect the trust funds?
A: As soon as the bankruptcy was filed in court, the Comptroller's Office sent an auditor to review all the bank records and files to ensure that all of the funds that were to have been entrusted were, indeed, properly entrusted. On June 23, 2008 the Peoria County Circuit Court appointed a limited receiver to take control of the trust funds. The limited receiver made a report to the Court on July 7, 2008 concerning the trust funds and the condition of the American Mausoleum property.
Q: Can't the state take the mausoleum over?
A: The state statutes do not provide for a state takeover of the mausoleum. They do provide, however, for the Comptroller's Office to have a receiver appointed for the trust funds. A receiver does not run the operations of the licensee nor does the receiver take title to the property. The Peoria County State’s Attorney, with the support of the Comptroller’s Office, has obtained a court order allowing Peoria County to help maintain the facility and allow limited access to the mausoleum on a temporary basis.
Q: How is the current situation different than the previous situation at Springdale Cemetery?
A: There was no bankruptcy filing for Springdale. Rather, the Comptroller’s Office successfully revoked the licenses of the then-owner of Springdale Cemetery for a number of reasons, including financial irregularities. The ex-licensee faced criminal charges, and as part of the plea agreement, turned over the real estate and operations of the cemetery. The circuit court in that case expanded the court-appointed receiver's powers to operate the cemetery. Further, the Springdale receiver relied extensively on volunteers to maintain the cemetery and the private Springdale Historic Preservation Foundation provided much of the funding for day-to-day operations of the cemetery until it was transferred to public ownership. American Mausoleum does not have a similar private foundation that could provide funding to operate the Mausoleum.
Q: Do I need to move my loved one to another cemetery/mausoleum?
A: It is too soon to know. It is possible that another operator will take over the facility and operate it. While we understand the anxiety and frustration caused by not knowing the final outcome of the bankruptcy and the future of the mausoleum, we urge family members to have patience while the future of the facility is determined. The Comptroller's Office will do everything it can to assist in finding a new operator for the facility.
For more information regarding the Cemetery Care and Burial Trust Division of the Comptroller's Office go to http://www.ioc.state.il.us/office/ccbt/.