Clients of bankrupt P.E.I. funeral home offered a fraction of what they lost on prepaid funerals

When Margaret Gallant prepaid $4,200 for her funeral several years ago, she thought she was giving herself and her family some peace of mind.

Instead, the 92-year-old is among dozensof creditors trying to recoup their money, and weighing a settlement proposal from the former Dawson Funeral Home in Crapaud.

The funeral homeclosed about a year ago after hundreds of thousands of dollars of clients' money disappeared.

Among the documents given to creditors was an affidavit in which owner LowellOakes was asked the reasons for his financial difficulties.

His reply: "misappropriated pre-arranged funeral funds."

Under the proposed deal, Gallantand other alleged victims wouldreceive about 37 cents on the dollar.They are voting on a settlement offer soon.

The settlement proposal isseparate from criminal court proceedings. Oakes also faces 66 charges of fraud related to the prepaid funerals.

I want the victims to get their money back, every nickel, and I think the government has a responsibility. Joe Amelia

The case is due back in court on Jan. 16.

Gallant'sstepson-in-law, Joe Amelia, saidthere needto be better protections in place forseniors.

"If we're going to have a law, it needs to be enforced and investigated. Somebody should have caught this way back before," he said.

"I want the victims to get their money back, every nickel, and I think the government has a responsibility.... These people need assistance, they need their money back, they need to be buried. It's only fair."

According todocumentsfiled under the Bankruptcy and Insolvency Act:

• Dawson Funeral Home Ltd. owes a total of $635,762 to creditors who claim they are owed $250 or more individually. That includes $146,074 owed to two secured creditors, and $489,689 owed to unsecured creditors, many of whom are owners of prepaid funeral plans.
• Dawson Funeral Home Ltd. has assets of $384,095, including its building and land, which are being sold with a closing date of Jan. 16, 2023.
• Oakes personally owes his creditors $881,424.
• Oakes personally owes Canada Revenue Agency $261,124.
• Oakes personally owes Dawson Funeral Home Ltd. $423,183.
• Before this settlement proposal, Oakes paid eight people who had bought prepaid funerals a total of $42,364.
• Oakes personally has assets that add up to $461,938 and are slated to be sold off. (Some assets, including small RRSPs, are exempt.)

'Gambling addiction'

A cover letter to creditorswritten by the accounting firm handling the proposal states:

"Oakes has advised us that some funds were used by Dawson to fund its operating expenses, funds were also used to pay for the expenses of a plumbing and heating company that Oakes operated, and some funds were used by Oakes to fund his gambling addiction, a condition for which Oakes advised he is receiving counselling."

CBC was unable to reach Oakesor the P.E.I. Funeral Services and Professions Board for comment.

Amelia said his family learned a difficult lesson.

"I think people need to keep money in theirown pocket, put it in their own bank account and arrange to pay for their funeral themselves afterwards."