Reporting Fraud in the Funeral Home Industry
If your funeral home, cemetery, or crematory employer is defrauding the government or violating the public trust, the law protects your right to speak up – and you may be eligible for a financial award if your information leads to a recovery of funds. For a general overview of the False Claims Act, see the U.S. Department of Justice’s page on the False Claims Act and Cornell Law School’s summary of the False Claims Act.
The Industry Has a Code of Silence. You Have a Choice.
You entered the deathcare profession to provide dignity to the deceased and comfort to the living, but you are seeing something else entirely.
Whether it is looting pre-need trust funds, falsifying records to bill the government, or cutting corners that result in the mistreatment of remains, you may be the only one who sees the truth. You may feel trapped, torn between your ethical duty to the families you serve, and the fear of losing your livelihood. For background on federal protections for funeral consumers, review the FTC’s guidance on Complying with the Funeral Rule and Cornell’s entry on the FTC Funeral Rule.
Traction Law Group helps break that silence. Our firm is known for holding funeral homes and related businesses accountable for negligence and misconduct, and we are dedicating resources to protecting the brave insiders who help uncover systemic fraud.
Your Integrity Can Be Rewarded (The False Claims Act)
Many whistleblowers are unaware that reporting fraud is not only the right thing to do – it can also be financially significant.
Under the Federal False Claims Act (and various state laws), private citizens who report fraud against the government may file a Qui Tam lawsuit on the government’s behalf. You can read more in the DOJ’s False Claims Act Primer and its main False Claims Act page. If the case is successful and funds are recovered, eligible whistleblowers (also called “relators”) may receive a percentage of the amount recovered, typically between 15% and 30%, as described in those resources.
In the deathcare industry, where government-related fraud can reach substantial amounts, this award structure is designed to compensate you for the professional risk you take by coming forward.
Types of Cases We Handle
We represent Funeral Directors, Embalmers, Cemetery Sextons, Sales Counselors, and Administrators who have evidence of serious, high-dollar fraud and misconduct, including:
1. Government Healthcare & Benefit Fraud
If your employer bills the government, they are subject to strict oversight. Common violations include Medicaid/Medicare fraud such as billing for services not rendered or upcoding simple services to premium rates; Veterans Affairs (VA) fraud such as falsifying burial benefit claims or double-billing families for items covered by the VA; and kickbacks, including accepting improper payments from tissue banks, medical device companies, or vendor partners in exchange for referrals or business. For an overview of VA burial benefits that can be implicated, see the VA’s page on Burial Benefits. These schemes can lead to substantial False Claims Act exposure and large potential recoveries.
2. Pre-Need Trust Fund Embezzlement
Millions of dollars sit in pre-need accounts intended to pay for future funerals. Unscrupulous actors may treat this money as a personal or business slush fund, including using trust funds for business operating costs or personal expenses, failing to place consumer funds into required trusts under state law, or using new pre-need contracts to pay for prior obligations in a way that resembles a Ponzi structure. The FTC provides compliance guidance for funeral providers in its publication on Complying with the Funeral Rule. When pre-need money is mishandled at scale, it can implicate state trust and consumer protection laws and, in some cases, government programs and regulators, resulting in large, complex enforcement and recovery actions.
We Protect You From Retaliation
The biggest fear every whistleblower has is: “Will I ever work in this town again?”
The funeral industry is tight-knit, but federal and state whistleblower laws – including the False Claims Act’s anti-retaliation provision – prohibit employers from firing, demoting, harassing, or otherwise discriminating against you for lawful efforts to stop fraud against the government. The anti-retaliation protections are codified at 31 U.S.C. § 3730(h) and discussed in the DOJ’s False Claims Act Primer.
If your employer retaliates against you for reporting illegal activity, Traction Law Group and our co-consel may pursue all available remedies, including claims for lost wages, future earnings, emotional distress, and harm to your professional reputation. Before taking internal or public action, it is important to speak confidentially with an attorney to preserve your protections and potential claims, consistent with best practices described in federal materials like the DOJ’s False Claims Act Primer.
Why Choose Traction Law Group?
Most whistleblower firms are generalists – they do not know the difference between a retort and a reception hall. Traction Law Group focuses on deathcare litigation and whistleblower matters. We understand the FTC Funeral Rule, state cemetery acts, and the specific board regulations that govern your license, as reflected in federal guidance on Complying with the Funeral Rule and the FTC Funeral Rule.
We Take Confidentiality Seriously. We understand that you may still be employed at the company you are reporting. In many cases, we can investigate claims and file initial pleadings under seal, meaning the lawsuit is filed confidentially and served on the government rather than the defendant at the outset, which can help protect your identity while the government evaluates the case. This seal procedure is described in DOJ’s False Claims Act page and its False Claims Act Primer.
Stop the Fraud. Restore the Dignity.
If you have evidence of large-scale fraud or theft in the funeral, cemetery, or cremation industry, do not wait. Deadlines and statutes of limitations may apply to your potential claims.
Contact Traction Law Group today for a 100% confidential, risk-free consultation with an attorney experienced in deathcare and whistleblower law.
Disclaimer: The information on this page is for general information purposes only and does not constitute legal advice or create an attorney-client relationship. Every case is different; past results do not guarantee similar outcomes.
