Former Michigan funeral home director pleads no contest in $1 million embezzlement scheme

A former Michigan funeral home director pleaded no contest to over two dozen charges in a $1 million embezzlement scheme, according to the Michigan Attorney General's Office.

Terry Alvin Kaufman, 72, of Bad Axe, pleaded 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.

"I am proud of the prosecutors in my office who were able to secure this conviction and an order for more than $1 million in restitution for the hundreds of victims in this case," said Attorney General Nessel in a statement. 

State prosecutors say Kaufman collected money through the Huron County Public Guardian and failed to escrow the funds. Officials say 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.

Kaufman was initially accused of embezzling more than $192,000 that impacted 55 people. As part of the plea agreement, prosecutors say Kaufman must pay $1,111,165.77 in restitution to 204 victims. 

"Individuals who believe they are responsibly planning for the future needs of vulnerable adults or prepaying for funeral arrangements should be able to trust that the money they set aside will not be siphoned off. My office will continue to hold accountable those who exploit Michiganders for personal gain," Nessel said.

Kaufman will be sentenced on May 11.