By Staff
LANSING – Attorney General Mike Cox Tuesday announced that he has successfully obtained a temporary injunction and the appointment of a conservator to operate 28 Michigan cemeteries owned by Las Vegas-based company Indian Nation, LLC, and its owner, Clayton Smart of Okmulgee, Okla.
Smart is also the majority owner of Mikocem, LLC, another Las Vegas- based company that conducts business under the assumed names of the cemeteries, and Summerfield, LLC, a Canton, Mich.-based firm that owns and manages trust fund assets of the cemeteries.
"The operation of these 28 cemeteries will not be jeopardized. Families and loved ones should be reassured that the conservator will preserve these vital trust assets in order to meet the future needs of the cemeteries," Cox said.
Cox filed a motion for a temporary injunction and request to appoint a conservator in Ingham County Circuit Court Dec. 19.
Judge James R. Giddings granted the motions and appointed Mark Zausmer as a conservator to operate the 28 cemeteries and to properly maintain and invest their trust assets under Michigan law.
In addition to identifying trust fund assets and liabilities, Zausmer will insure that the cemeteries continue to operate in a normal manner. The order also appointed LaSalle Bank as the trustee over the assets currently in the cemetery trust funds.
Smart, who purchased the 28 cemeteries in August 2004, is also the owner of cemeteries and funeral homes in Tennessee, Arkansas and Oklahoma. In February 2006, the Tennessee Office of the Attorney General contacted Cox's office with concerns about Smart's handling of cemetery trust funds.
Cox's office contacted the Michigan Department of Labor and Economic Growth (DLEG), and the two departments initiated a joint administrative investigation into the Michigan trust accounts.
"Consumers should not be alarmed by today's activities. These actions are the most effective way to insure that consumers investments are protected and, most importantly, that their loved ones' remains are secure," said Robert W. Swanson, director of the Michigan Department of Labor and Economic Growth, which regulates cemeteries.
The investigation revealed that, at the time Smart purchased the 28 Michigan cemeteries, cemetery trust funds were valued at approximately $61 million, but that Smart subsequently invested approximately $31.5 million in Oklahoma-based Quest Minerals and Exploration Inc.