MADISON, WI (WTAQ) - The federal government is looking into a statewide trust fund which holds the money that Wisconsinites pay to funeral homes for pre-paid burials.
The Milwaukee Journal Sentinel says the Wisconsin Funeral Trust now has a shortfall of $24.5 million. And the Securities and Exchange Commission is examining the Blue Point Investment Counsel, formed last year by a pair of long-time advisers to the funeral trust account.
Milwaukee attorney Jeremy Levinson says the government’s examination process normally determines whether there’s enough evidence to do a full-fledged investigation.
The Funeral Trust was placed into court-ordered receivership last fall, after it built up a deficit of $21 million – $3.5 million less than what’s being reported now.
The court-appointed receiver, John Wirth, has criticized Blue Point’s fees and the aggressive investments chosen for the trust. The fund has over 10,500 investors.
The Journal Sentinel says it’s supposed to have over $70 million on hand – but it actually has less than $50 million.