Illinois Comptroller's Office warned licensing agency about funeral home, crematory owners before 2nd shutdown

Red flags about a family behind two funeral homes and crematories shut down by the state for mishandling bodies were missed in part because two different agencies regulate the death industry in Illinois.

Clark and Johanna Morgan ran Heights Crematory and South Chicago Chapel, a crematory and funeral home that have now both been shut down by the state of Illinois.

CBS News Chicago Investigators broke the story about Heights Crematory in 2025, where regulators were tipped off to horrible conditions involving mishandled bodies. The Illinois Comptroller's Office, which regulates crematories, shut down Heights right away.

Then earlier in August, police were called to South Chicago Chapel, a funeral home on the city's Far South Side that is also owned by the Morgans. There they found 56 bodies in various states of decomposition.

Illinois Comptroller Susana Mendoza sounded the alarm when she spoke to CBS News Chicago Investigators on Aug. 7.

"Like, literally, the Morgans run a house of horrors," she said.

Illinois is one of only a few states that has multiple agencies regulating different parts of the death industry. The comptroller is in charge of regulating crematories, while the Illinois Department of Financial and Professional Regulation (IDFPR) is in charge of licenses for funeral home directors.

"I mean, I would be incredibly disappointed if they did not have a microscope on these entities, because we have shouted it from the mountaintop," Mendoza said.

CBS News Chicago Investigators made a public records request and can prove the Comptroller's Office repeatedly warned IDPFR about the Morgans.

On March 31, 2025, in an email from an attorney in the Comptroller's Office to an IDFPR investigator, they wrote, "Johanna Morgan definitely does not need to have a funeral director license. Have you heard if IDFPR prosecutions is going to move on suspension/revocation?"

On April 30, 2025, the Comptroller's Office wrote regarding a body in Northwest Indiana, "I would also like to refer this to IDFPR."

On August 20, 2025, in an email exchange between the same two individuals, the comptroller attorney wrote, "Please help this family by going after Clark & Johanna Morgan" in response to a mix-up with one family's loved ones.

The Comptroller's Office even emailed IDFPR leader Mario Treto Jr., writing on July 7, 2025, "I am attaching a letter informing you that the COMPTROLLER has permanently revoked the crematory license of Heights Crematory, which is owned by Johanna Morgan and was operated by Clark Morgan. … I am encouraging your agency to continue its investigation into their work at funeral homes."

In May 2025, in an email between comptroller employees, one wrote, "That is disappointing to hear that IDFPR has not taken any action against Johanna yet."

It would take 15 more months and dozens of rotting bodies at a funeral home run by Johanna Morgan for IDFPR to finally suspend her license.

IDFPR sent CBS News Chicago Investigators a statement stating it filed formal disciplinary charges against Johanna Morgan in October 2025. The agency maintains there was not enough evidence to suspend her license at the time.

Her license was suspended when those decomposing remains were found at South Chicago Chapel. No criminal charges have been filed against the Morgans for either incident at this point.

Full Statement from IDFPR 

IDFPR acted promptly and proactively within its authority upon learning of concerns involving Bohemian Crematorium and the potential connection to South Chicago Chapel (SCC). After receiving a complaint regarding the crematorium, which is not regulated by IDFPR, the Department immediately referred the matter to the Illinois Office of the Comptroller (IOC). When IDFPR subsequently learned that SCC had utilized the crematorium, the Department proactively initiated an onsite review and, shortly thereafter, launched a formal investigation into SCC.

As the investigation progressed and information came to light, IDFPR worked quickly to coordinate with local authorities, including the Cook County Medical Examiner, Illinois State Police, Office of the Cook County Medical Examiner and Chicago Police Department, to ensure the appropriate officials were notified and could respond. IDFPR also took immediate regulatory action against SCC, including the summary suspension of its funeral director's license, effectively ceasing the facility's operations. Additional disciplinary action is pending, and the Department is fully cooperating in ongoing investigations.

In 2025, following the incident at Heights Crematory, IDFPR took proactive steps to review other locations affiliated with the Morgans that fall within the Department's regulatory authority following the IOC investigation. While IDFPR does not regulate crematories, the Department conducted multiple visits to affiliated locations, including South Chicago Chapel, to investigate potential unauthorized funeral directing activities. IDFPR's visits, including its most recent visit to South Chicago Chapel in October 2025, did not identify evidence of mishandling or improper storage of remains. IDFPR subsequently filed formal disciplinary charges against Johanna Morgan in October 2025. At that time, IDFPR did not have sufficient grounds to summarily suspend Johanna Morgan's license (the action that took place in August 2026). If it had found concerning evidence, like the evidence discovered in August 2026, the Department would have taken that action.

Throughout the matter, IDFPR acted within its regulatory authority and took appropriate steps to investigate and address matters within its jurisdiction. Please see the attached fact sheet for a complete timeline.

Regarding the disciplinary process, this begins when DPR becomes aware of a complaint against a licensee. Sources of complaints include members of the public, other licensees, law enforcement agencies, and other governmental agencies. Irregularities also are discovered by the agency during the course of enforcement activities, special enforcement programs, and other routine inspections.

After initial review, complaints are assigned to a lead investigator. The investigator is responsible for determining if DPR has (1) legal jurisdiction and/or (2) adequate evidence to proceed with any potential violation of a licensing law. After developing facts in cases where there appears to be a proper legal jurisdiction and adequate evidence, the investigator refers the case to a prosecuting attorney. If there is insufficient evidence to indicate a violation of the particular licensing statute, the investigative file is closed. The investigator also may discover facts that indicate criminal activity which can lead to referral to a county State's Attorney or the Illinois Attorney General.

Complete investigations where there is sufficient evidence of a violation are forwarded to DPR's prosecuting attorneys staff for review. After review by a prosecuting attorney, it may be determined that further investigative evidence is needed. If the staff attorney concludes that the matter has been sufficiently investigated and there is evidence supporting the complaint, formal charges are filed. 

IDFPR has acted swiftly within its regulatory authority, taking appropriate steps to protect the public and ensure the safe and lawful handling of human remains.

For detailed information, please see the attached fact sheet, which was provided to your organization on August 17.