Former Michigan funeral home director sentenced in $1 million embezzlement scheme

A former funeral home director in Michigan is headed to prison for his role in a $1 million embezzlement scheme, state prosecutors said. 

On Monday, 72-year-old Terry Alvin Kaufman of Bad Axe was sentenced to seven to 20 years in prison after pleading no contest to more than two dozen charges. 

In March, Kaufman pleaded no contest to one count of conducting a criminal enterprise, two counts of embezzlement by an agent $20,000 or more but less than $50,000, five counts of embezzlement by an agent $1,000 or more but less than $20,000, and 31 counts of conversion of funeral contracts.

State prosecutors say Kaufman collected money through the Huron County Public Guardian and failed to escrow the funds. Authorities allege that over the last 10 years, Kaufman took the money from people who prepaid for funerals and used it for personal expenses, including paying his salary.

"I am proud of the prosecutors in my office and the Department of Licensing and Regulatory Affairs for securing this sentence and restitution for the hundreds of Michigan families impacted by this embezzlement scheme," Michigan Attorney General Dana Nessel said in a statement. "When residents are prepaying for funeral arrangements, they shouldn't have to worry about their hard-earned money being stolen. We remain committed to pursuing and prosecuting those who exploit Michiganders."

As part of his plea agreement, Kaufman must also pay $1,111,165.77 in restitution to 204 victims. 

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