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By Glenna Jarvis - The Madera Tribune

An investigation into Madera Funeral Home, located on Road 26, has led to a judge's order that the establishment lose its license, and its manager no longer be allowed to operate as a funeral director.

Madera Funeral Home and its director, Michael Wallace, will lose its licenses to do business, according to Kevin Flanagan, spokesperson with the California Department of Consumer Affairs.

Madera Funeral Home, located at 17408 Road 26, had been in business since March 4, 1936. Wallace became manager of the business Oct. 23, 1995. Since then, numerous citations have been issued against Wallace and the business.

Both licenses' will be revoked Aug. 8, Flanagan said.

"I don't think we've ever had anyone with so many violations," he added.

Flanagan said the charges center around Wallace's failure to provide contracted services, and in some cases failing to provide the services in a timely manner.

The judge's finding cites "misrepresentation ... fraud ... gross negligence, gross incompetence ... unprofessional conduct in the practice of funeral directing" and "failure to pay fines" for the violations.

"(Madera Funeral Home) and Wallace have committed numerous, serious violations of the Funeral Directors and Embalmers Law and Health and Safety Code over a period of approximately 10 years," Judge William Hoover wrote. "Many of the violations are repetitive and bespeak a lack of proper management, supervision and control."

"We received the information from the Department of Consumer Affairs and are currently reviewing it," Wallace said Thursday. "I have no other statement at this time."

Hoover added that "although (Wallace) admitted the violations, there was little real acceptance of responsibility," adding that Wallace said the violations were due to his loss of the Madera County coroner contract.

"The fact is that the contract cancellation was a direct result of the numerous complaints against (Wallace)," Hoover wrote.

The finding, dated July 3, orders that both the funeral establishment license and director's license are revoked.

One count outlined in the First Supplemental Accusation states Wallace "misplaced the cremated remains" of a client. In February 2000, he agreed to inter the remains on March 1, and was to bring the remains to the cemetery for a graveside service. Wallace canceled the March 1 interment, rescheduled for March 6, and canceled a second time.

When Wallace rescheduled the graveside service for March 8, he failed to show up at the cemetery with the remains, according to the report.

"(Wallace) notified the family that the cremated remains were in a locked safe," the report states, "and he did not have the key."

Wallace claimed that the employee who had the key was out of town, and when the family contacted that employee, he learned that the remains were "in storage" and Wallace "was looking for them."

The cremated remains were located and interred on March 16.

Count two states that Wallace attempted to withhold information from a family that the remains of their family member would be transported to Fresno for embalming by covering the disclosure portion of the form. Also in count two, Wallace increased the cost of another family's funeral arrangements by $1,205 after the man died.

Count three outlines a case where Wallace accepted payment from a family in the amount of $1,700 to ship remains from Oklahoma to Madera, but failed to release payment to the Oklahoma funeral home for more than eight months.

Several of the 13 counts deal with headstone markers that were paid for by the family members and either not placed in a timely manner, or not made according to the agreement.

In one case, Wallace claimed that a marker was damaged and needed to be replaced, so the family wrote a check to Wallace in the amount of $295 to replace the marker. But when they visited the cemetery, they discovered the marker was not damaged, but needed cleaning.

Wallace charged another family $595 for a marker in November 1999, but the marker wasn't ordered until February 2000, and wasn't placed on the graveside until March 2000.

Photographs of loved ones that were to appear on markers have never been placed, regardless of the fact they have been paid for well in advance, the report states. One family took Wallace to small claims court to force reimbursement after they bought a marker and placed it on their son's grave after paying Wallace for the service.

That family waited from September 2000 until May 2001 before buying another marker and obtaining an attorney. Wallace was ordered in Madera County Superior Court to reimburse the family earlier this year.

Cost for the markers range from just under $300 to almost $700, according to the report.

Wallace was also found to have coordinated financial aid for a family to cover the balance of $1,081.38 for funeral services the family could not afford. After Wallace secured a loan through a finance company and received payment, the family came up with the balance and wanted to pay it themselves.

"Wallace instructed them to make a check out to (Madera Funeral Home), which they did," the supplemental report states. "Wallace cashed the check on March 13, 2002, but did not pay the finance company ... until August 28, 2002," and "only after the family filed a complaint with the Madera County District Attorney's office."

Another family who arranged a pre-need plan on Dec. 2, 1999, for their mother made payments of $400 and $1,500 to the plan. When they wanted to discuss the plan with Wallace in October 2001, he "could not locate the pre-need contract."

On Nov. 11, 2001, Wallace "offered a reduced amount for funeral services." After making the new arrangements, the family asked that the $1,900 be refunded.

The family never received a refund.

When asked, Wallace was "unaware of what happened to the money" and was "unaware if the money was ever placed in a trust account."

Fines for citations issued against Wallace and Madera Funeral Home that have not been paid total about $20,208. Wallace has also been ordered to pay the state's cost of $24,208.79 for its investigation.

Numerous certified letters were mailed to Wallace, but were returned "unclaimed."

Investigators granted Wallace several extensions of time periods set to resolve the matters, but none of the matters were resolved. Wallace was given several opportunities to respond to the various claims, but failed to do so, Hoover wrote.

"Most funeral homes that do have complaints, they never go very far," Sharlene Smith of Smith Manor Grace Chapel said. "Most reputable funeral homes solve the problem before they become an issue with the family."

She added that she has worked at several funeral homes and corporations before opening Smith Manor with her husband, George, about a year ago, and problems were always taken care of within the first 24 hours after the complaint was made.

"In my experience, it is the sincerity in which you handle a family's complaint that keeps a complaint from becoming an issue," Smith said. "Therefore, there would be no reason for the state to step in."

"A lot of funeral directors have been waiting and watching this whole thing with Mr. Wallace," Smith said. "We take an oath, one we have to uphold. We don't want someone out there giving us a bad name."

Flanagan said Wallace could appeal the judge's decision in Superior Court, but "the file speaks for itself."

"Taking away his license, that's the big thing," Flanagan said. "He can no longer do harm to consumers."

Wallace is eligible to apply for a new license after one year, but the complaints against him will remain on file and will be referred to should he attempt to regain his standing as a funeral director, Flanagan said.

"He has to show he has mended his ways," Flanagan said. "But at this time, it's way too early to consider that."

Part of the requirement to apply for a new license would be to pay all the fines and costs ordered by the court, he said.

Flanagan said most pre-need arrangements with Wallace and Madera Funeral Home are in the form of insurance and passbook accounts. Consumers can get their money back from the bank, he said, and those with insurance should check the beneficiary on the policy and, if Madera Funeral Home or Wallace is listed, they should make the appropriate change.

"They should check with other funeral homes in the area," Flanagan said. "Typically, they will honor those contracts."

Of the more than 1,000 funeral homes, 2,200 funeral directors, and 2,600 embalmers statewide, only three revocations were issued last year, Flanagan said.

"Thankfully, it's not the most common remedy," he said.

Anyone with questions regarding contracts with Madera Funeral Home or Michael Wallace may contact the State Cemetery and Funeral Bureau at (916) 322-7737.

Glenna Jarvis For the Madera Tribune The Madera Tribune The Madera Tribune online subscription To subscribe or log on, CLICK HERE. For more information first, CLICK HERE.