By Steve Lundeberg
Albany Democrat-Herald | Posted: Friday, July 10, 2009 12:00 am
Consumer protection fund valued at more than $900,000
If you or a relative prepurchased merchandise at Twin Oaks Memorial Gardens & Mausoleum, you will get what you paid for.
That was the word Thursday from David Tatman, the administrator of the state agency that spent more than seven months investigating Twin Oaks' books.
Tatman spoke to the Democrat-Herald from his Salem office to elaborate on the Division of Finance and Corporate Securities' findings and actions in the Twin Oaks case.
The DFCS determined that Andres and Chantelle Hernandez, who owned the Riverside Drive facility for 15 years before selling it to Mike Terwilliger and William Clark Sr. in November 2005, misused more than $400,000 in proceeds from at least 290 "preneed" sales of headstones, caskets and the like.
Rather than place them in trust as required by law, the Jefferson couple deposited those monies into a bank account that was used for both personal and business expenses, the DFCS said.
The agency has imposed on the Hernandezes a civil penalty of $540,000, which is to be paid into the state's Funeral and Cemetery Consumer Protection Trust Fund.
As its name implies, that fund exists to aid Oregonians who have been defrauded or otherwise harmed by businesses in the death-care industry.
Tatman said there is nearly a million dollars in the fund, so people who entered into preneed contracts with Twin Oaks during the Hernandez era should feel assured that there will be cash to service their contracts when the time comes.
Tatman also emphasized that Terwilliger, who has operated Twin Oaks since the sale, had lawfully handled all of the preneed proceeds he had taken in.
The administrator said the restrictions that have been placed on Terwilliger's ability to enter into preneed contracts - including forbidding him from selling grave markers on a preneed basis - are purely the result of his yet-to-be resolved issues with a lender.
After becoming financially stressed by a lack of funds to cover preneed contracts sold by the Hernandezes, Terwilliger and Clark defaulted on a $600,000 note they'd taken out to buy Twin Oaks.
That resulted in a foreclosure judgment. Terwilliger's Lebanon attorney, Tre Kennedy, said Thursday that the completion of the state investigation - and exoneration of his client - made him confident a new deal could be negotiated with the note holders.
WHAT TO DO
If you're a relative of one of the estimated 42 people who have been buried at Twin Oaks without a marker purchased on a preneed basis, you should contact Mary McCarron of the Division of Finance and Corporate Securities,1-866-814-9710.
McCarron can provide a form that asks the claimant to specify the merchandise that wasn't received and its value.
"We'll ask for documentation, and the more you have, the better," said David Tatman, the administrator of the DFCS.
If you're one of the still-living holders of a Twin Oaks preneed contract, you don't need to do anything other than anyone should do - make sure your copy of the contract, as well as all of your important financial documents, is complete and easily accessible by those who will handle your estate.
At the time of your death, the state's consumer protection fund will assure there is money to purchase the items for which you've prepaid.
If you've misplaced your contract and have exhausted all means of finding it, call McCarron at the number above.