State Says Cemetery Owner Swindled Families

INDIANAPOLIS -- The owner of a cemetery was charged Thursday with several felony counts following an extensive investigation of misappropriated funds, officials said.

According to authorities, Robert Nelms (pictured) purchased Memory Gardens Management Corp., which owned several cemeteries and funeral homes, for $27 million in late 2004.

State regulators accused Nelms of forging documents to transfer money out of the fund to pay for personal expenses.

Officials said Nelms inappropriately used more than $22 million from the perpetual care fund of the business to pay off a $13 million loan to fund the purchase of the business and to buy a $1.2 million home for him and his wife, Debora.

Nelms was charged with five felony counts of theft, one count of fraudulent or deceitful acts and two counts of violation of a cemetery perpetual care fund, in addition to misdemeanor charges.

Typically, cemeteries place 15 percent of the fee paid by bereaved families in a perpetual care trust fund so that the cost of upkeep of the cemetery is paid.

Investigators said that Memory Gardens' fund had close to $24 million when Nelms purchased the business.

Accounts managed by Nelms and his wife were frozen late Thursday. Officialssought to have a receiver appointed so funds could be recovered.

"There are few things worse that victimizing the families of the dead at a time when they're grieving over their lost loved one," Marion County Prosecutor Carl Brizzi said in a statement released Thursday.

Authorities said the investigation spanned eight months and involved the state attorney general's office and Indiana secretary of state's office.

"Robert Nelms represents the worst element of society -- taking advantage of honest people who have chosen to use their money for respectful purposes," said Indiana Secretary of State Todd Rokita. "We are shocked at the extent that Nelms has taken to defraud honest Hoosiers."

Jim Meyer and his family sold their cemetery business to Nelms in 2004. Meyer asked a court to allow them to oversee their former company during the dispute.

Robert Nelms was held on $500,000 bond Friday and Debora Nelms was held on $200,000 bond, 6News' Rafael Sanchez reported.

Nelms' company operates the following facilities in Indiana:

Forest Lawn Memory Gardens, Greenwood

Covington Memorial Gardens, Fort Wayne

Chapel Hill Associates, Osceola

Lincoln Memory Gardens, Boone County

Gardens of Memory, Muncie

Gill Funeral Home, Washington

If you've encountered problems with other cemetery owned by Memory Garden Management, tell Call 6 and call the Indiana secretary of state's office at 800-223-8791.