A former cemetery owner has finally has been sentenced after an investigation proved he embezzled up to $70 million from cemetery trust funds. Cadillac Memorial Gardens East in Clinton Township, located at Garfield and Clinton River Road, is one of 28 Michigan cemeteries affected by removal of trust fund monies. Clayton R. Smart, 71, of Okmulgee, OK has been sentenced to serve a minimum four years in prison for his crime. Mr. Smart owned a handful of cemeteries in Macomb and Oakland counties, including Oakview Cemetery in Royal Oak, Roseland Park Cemetery in Berkley, and Oakland Hills Memorial Gardens in Novi. This closes a case that has been in the works since 2007.
Another aspect to Mr. Smart’s sentence is to pay $48,670,000 in restitution to impacted cemeteries. The order carries the force of a civil judgment and may be enforced by Midwest Memorial Group, which purchased 26 of the 28 impacted cemeteries, and the Michigan Cemetery Commissioner. According to the State of Michigan website, the Cemetery Commissioner:
….is required to audit cemetery trust funds, approve cemetery ownership changes, investigate applications for new cemeteries, and investigate complaints from the public regarding cemeteries. Cemeteries owned and operated by a municipality, church or religious institutions are exempt from the cemetery act.
The sentence was handed down by 36th District Court Judge Kevin Robbins in Detroit in a multi-jurisdictional plea agreement to several charges, which will be served concurrently. The sentences’ include:
- Four to 20 years for one count of racketeering
- Four to 10 years for 10 counts of embezzlement by an agent over $20,000
- Two to five years for 28 counts of failing to escrow cemetery or pre-paid contract funds
The terms of the agreement allow Smart to be given credit for time served since March 23, when he went into federal custody. Smart will serve his Michigan sentence concurrent with a five-year sentence for tax evasion imposed by a federal conviction. Mr. Smart has a criminal record in Tennessee for similar crimes.
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