New Tenn. charges in cemetery fraud case

An oil speculator and funeral home owner accused of stealing millions from cemetery trust funds has been indicted on theft and money laundering charges, prosecutors said Friday.

The announcement of charges in Memphis came a day after Clayton R. Smart, 67, of Okmulgee, Okla. was arrested in that city and charged in Michigan in a related case.

The grand jury in Memphis also indicted Smart's business partner, Stephen Smith, 60, of Muskogee County, Okla., and financial adviser Mark Singer, 41, of New Hope, Pa., District Attorney Bill Gibbons said in a statement. All three are accused of theft and money laundering.

Smith and Singer have been taken into custody and were awaiting extradition to Tennessee, the release said.

Calls to Smart and Smith seeking comment were not immediately returned. Singer couldn't be located for comment.

Tennessee officials allege that Smart, Smith and Singer stole more than $20 million from trust funds for three cemeteries and funeral homes in Memphis owned by Smart and Smith.

In Michigan, Smart is charged with 39 felony counts of racketeering, embezzlement and misuse of cemetery funds. Attorney General Mike Cox said Smart is accused of embezzling up to $70 million from 28 Michigan cemetery trust funds.

Smart was being held in Oklahoma with bond set at $4.2 million _ $300,000 for the charges in Tennessee and another $3.9 million for the Michigan charges.

The Tennessee case stems from Smart's announcement in July that more than 13,000 people with prepaid burial contracts would have to pay more _ thousands of dollars in some cases _ for those contracts to be honored.

Smart has blamed the problems on inflation and other people's mismanagement.