December 19, 2006 - Michigan Cemetery Commissioner Andrew L. Metcalf, Jr. filed an Administrative Complaint and Cease and Desist Order against Indian Nation, LLC managed by Oklahoma resident Clayton Smart.

Six counts were alleged against each of the 28 cemeteries managed by Smart. The allegations include:

• Improper co-mingling of funds; 
• Improper use of trust funds for the purchase of life insurance; 
• Failure to invest cemetery trust fund monies in accordance with law and regulations; 
• Failure to file a timely and sufficient annual report as required by cemetery law; 
• Failure to properly comply with deposit requirements of the Pre-paid Funeral and Cemetery Sales Act; 
• Failure to file a timely and sufficient annual report as required by Pre-paid Funeral and Cemetery Sales Act.

Smart will have 15 business days to respond to the Administrative Complaints and a hearing will be scheduled through the State Office of Administrative Hearings and Rules.

"These disciplinary actions are the most effective way to ensure that consumer investments are protected and secure," said Robert W. Swanson, director of the Michigan Department of Labor & Economic Growth, which regulates cemeteries. "After investigating allegations from other states regarding Clayton Smart's company investments, we felt we have no choice but to take immediate corrective action."

DLEG, with the assistance of the Department of Attorney General, announced that they have successfully obtained an emergency injunction and the appointment of a conservator to oversee the operations of 28 cemeteries registered to Las Vegas-based company Indian Nation, LLC. Smart is also the managing member of Mikocem, LLC, a company also based in Las Vegas that conducts business under the assumed names of the cemeteries, and Summerfield, LLC, a Michigan-based firm that manages the trust fund assets of the cemeteries.

The temporary injunction and request to appoint a conservator were filed and approved by Judge James Giddings of the Ingham County Circuit Court earlier yesterday.

"By teaming up with the Department of Attorney General and taking the necessary corrective actions, I am confident that these cemeteries are now in good hands," said Cemetery Commissioner Metcalf.

The court appointed Mark Zausmer of Farmington Hills as conservator to oversee the operations of the 28 cemeteries and to conserve their trust assets.

Cemeteries owned by Indian Nation, LLC include:

ALBION MEMORY GARDENS, INC., Calhoun County
ACACIA PARK CEMETERY, Oakland County
CADILLAC MEMORIAL GARDENS EAST, Macomb County
CADILLAC MEMORIAL GARDENS WEST, Wayne County
EASTLAWN MEMORIAL GARDENS, Saginaw County
ELM LAWN CEMETERY, Bay County
FLORAL VIEW MEMORIAL GARDENS, Kent County
FOREST LAWN MEMORIAL GARDENS, Eaton County
FOREST LAWN MEMORIAL PARK, Wayne County
GARDEN OF REST, Delta County
GRACELAND MEMORIAL PARK, Kent County
GRANDLAWN CEMETERY, Wayne County
HILLCREST MEMORIAL PARK, INC., Jackson County
KENT MEMORIAL GARDENS, Kent County
MIDLAND MEMORIAL GARDENS, Midland County
MOUNT HOPE MEMORIAL GARDENS, Wayne County
NORTHLAND CHAPEL GARDENS, Marquette County
OAKLAND HILLS MEMORIAL GARDENS, Oakland County
OAKLAWN CHAPEL GARDENS, Chippewa County
OAKVIEW CEMETERY, Oakland County
OAKWOOD MAUSOLEUM, Saginaw County
RESTLAWN MEMORIAL GARDENS, Ottawa County
ROSELAND PARK CEMETERY, Oakland County
ROSELAWN MEMORIAL GARDENS, Saginaw County
UNITED MEMORIAL GARDENS, Wayne County
WASHTENONG MEMORIAL PARK, Washtenaw County
WOODLAWN MEMORIAL PARK, Wayne County
WOODMERE CEMETERY, Wayne County

Members of the public who have questions and concerns regarding the operations of the 28 cemeteries owned by Indian Nation, LLC may contact the Cemetery Commissioner within DLEG's Bureau of Commercial Services at 1-866-913-3534, Monday through Friday, 8:00 a.m. - 5:00 p.m., email BCSCEMETERIES@Michigan.gov, or fax 517-241-9392.

Read more Michigan Department of Labor & Economic Growth press releases.