The Neptune Society is one of the largest providers of cremation services in the country. The Neptune Society performs Florida cremations and in nine other states. In Colorado the cremation service is accused of misleading customers and overcharging them.
The head of the national cremation broker being investigated by the Colorado Division of Insurance denied any wrongdoing Wednesday.
Jim Ford, the chief operating officer of Neptune Management Corporation, said in a statement: “We are, and always have been, in full compliance with the rules and regulations in every state in which we do business.”
After a Colorado Springs funeral home owner complained about Neptune’s practices in April, and a Neptune customer complained in July, insurance division officials launched an investigation.
That investigation resulted in charges alleging Neptune “misled consumers and manipulated prepaid, preneed funeral accounts in order to skirt Colorado law and maximize profits,” according to a division release.
Colorado law states the company was supposed to put 75 percent of customer’s prepaid funeral services in a trust fund. The investigation revealed in some cases less than 35 percent of the money was put into a trust and that the company inflated charges for upfront merchandise such as urns by as much as 1,300 percent, according to the Division.
The company is a leader in the cremation business and has offices in 10 states.
“The Neptune Society takes this complaint very seriously because we care about our customers first and foremost,” Ford said.
Neptune officials have been ordered to appear before the division Oct. 24 to answer charges. The company could be fined up to $5 million and have its Colorado license suspended or revoked.