Licensing and Regulatory Affairs
Media Contact: LARA Communications 517-335-LARA (5272)
July 12, 2019 - The Dept. of Licensing and Regulatory Affairs (LARA) revoked the prepaid funeral and cemetery sales registration of Sherwood Funeral Home and Cremation Services LLC (Sherwood) for a minimum of three years, effective July 1, 2019, for violations of the Prepaid Funeral and Cemetery Sales Act (Prepaid Act). LARA’s Corporations, Securities and Commercial Licensing bureau (CSCL) issued the final order and stipulation regarding the funeral home located at 1109 Norvell Rd. in Grass Lake, MI.
This action is based on a settlement agreement with CSCL following an audit of Sherwood’s funds held under the Prepaid Act conducted by CSCL’s Securities & Audit Division. Sherwood – through a Stipulation signed by its licensed manager, Christopher Ty Sherwood – admitted to violations of the Prepaid Act of failing to deposit at least $72,364 it received for prepaid funeral goods or services related to 18 prepaid contracts with an authorized escrow agent and failing to do so within 30 days of receipt. As a result, Sherwood’s registration to sell prepaid funeral contracts was revoked.
Within 60 days, Sherwood must remove all references to the sale of prepaid contracts from its website and either assign all remaining prepaid contracts to another person actively registered under the Prepaid Act or cancel the contracts and issue refunds to the contract buyers, including accrued interest. If the prepaid contracts are assigned to another registrant, neither Sherwood nor its licensed manager may serve as the provider of the funeral goods or services specified in the contract. Within 30 days of the assignment, Sherwood is required to provide notice to both the contract buyer and to CSCL.
Sherwood must submit written proof to LARA of having complied with the above requirements by providing copies of refund checks or copies of fully executed assignment agreements and correspondence to each contract buyer affected by the assignments within 90 days.
A person who converts funds paid pursuant to a prepaid contract to his or her own use or benefit other than as authorized by the Prepaid Act or who fails to escrow or trust funds according to the Prepaid Act is guilty of a felony punishable by a fine of $5,000 or imprisonment of not more than five (5) years, or both, for each violation. A person who violates any other provision of the Prepaid Act is guilty of a misdemeanor punishable by a fine of not more than $1,000 or imprisonment for not more than one (1) year, or both, for each violation.
Members of the public who have questions or concerns regarding the operation of Sherwood Funeral Home and Cremation Services LLC may contact the Securities & Audit Division within LARA’s Corporations, Securities & Commercial Licensing bureau at 517-335-5237, Monday through Friday, 8:00 am – 5:00 pm, or by email at LARA-CSCL-Securities-Audit@michigan.gov.