Victims of a Fife funeral director who sold fake plans to vulnerable customers applauded as he was convicted of fraud.
Barry Stevenson-Hamilton pled guilty to obtaining more than £130,000 when he appeared at Kirkcaldy Sheriff Court.
The 39-year-old, of Old Dalkeith Road in Edinburgh, was first charged in 2019 with obtaining more than £170,000 but pled guilty to the lower sum.
His bogus plans were uncovered by staff who worked for the firm and eventually challenged him.
He was due to stand trial, with 52 complainers listed in the court papers.
Ultimately, he admitted selling more than 40 phoney plans by fraudulently offering prepaid funeral care packages from branches of Stevenson Funeral Directors in Fife.
He was CEO and director of the company at the time.
He was accused of running his scam at its branches in Station Road in Cardenden, Queensferry Road in Rosyth, Station Road in Cowdenbeath, Links Street in Kirkcaldy and elsewhere between 2013 and 2019.
He sold plans, purported to be with Cheshire-based funeral giants Avalon, which did not exist.
He has been locked up pending sentence next month.
Sheriff Elizabeth McFarlane told him as she remanded him: “I can see absolutely no alternative way of dealing with you”.
Found out
Fiscal depute Claire Bremner told the court: “The case relates to the accused selling prepaid funeral plans, through his undertaking business, that purported to be placed with a reputable provider.
“Instead the accused retained the money and no actual plan existed.
“Stevenson Funeral Directors held four offices in Fife – Rosyth, Cardenden, Kirkcaldy and Cowdenbeath. All operated from rented premises.
“All offices are now closed and the website is no longer active.
“The accused is the company director.
“Avalon Trustee Company is a company which sells prepaid funeral plans either directly to members of the public or with arrangements with third parties such as undertakers.
“The plans offered by Avalon are designed to give customers peace of mind that their money is with a trustee in the event of their chosen funeral directors going under or cases of allegiance changing.
“During the course of their business, Stevenson Funeral Directors sold legitimate funeral plans with Avalon.”
Ex-employee notices discrepancies
Ms Bremner explained employee Agnes Parker began working at Stevenson Funeral Directors, after meeting the accused through his ex-husband.
She considered Stevenson-Hamilton to be a close friend.
The court heard she had a funeral plan with the company, arranged by Stevenson-Hamilton with Avalon.
After leaving the firm, she became suspicious when another party showed her his funeral plan documentation and it was significantly different to her own.
She uncovered similar examples and realised she could not recall the accused making any calls to Avalon during meetings with prospective customers.
Told employees to lie on his behalf
Ms Bremner continued: “Witness Stacey Downie was employed by Stevensons from June 2017 to March 2018 as a funeral director.
“The accused provided training in respect of prepaid funeral plans and she was of the understanding that on a sale being secured, the accused would be responsible for transferring the funds to Avalon.
“Ms Downie recalled receiving calls from customers querying why their paperwork has not been posted as promised.
“The accused told her to explain that there was a backlog.”
Top funeral director turns sleuth
The firm’s principal funeral director Sarah Yorke called police on September 13 2019.
Ms Bremner said: “She expressed concerns that she had uncovered plans sold by the accused, which she believed to be fraudulent.
“She explained the accused had been selling plans and advising customers that their funds would be transferred to third party trustees Avalon.
“Ms Yorke believed the accused had been retaining the funds and failing to make Avalon aware, leaving the customer with no valid funeral plan.
“She had found letters sent by Stevensons, in place of letters from Avalon.
“Ms Yorke explained that witness Lynne Turner, also employed by Stevensons, challenged the accused and he denied any wrongdoing and removed these (letters), discarding them in a shredding bin and explaining that these customers were deceased.
“Ms Yorke and Ms Turner recovered the documents and confirmed the customers were alive.
“They photocopied them and provided them to police.”
Police probe
The court heard Dunfermline CID investigated and contacted witnesses named in documentation.
Ms Bremner said: “Witness Iain Farrand, compliance manager at Avalon, was contacted.
“He confirmed that plans which had been sold to members of the public by Stevensons had not been recorded on Avalon’s system and that Avalon did not hold funeral plans for these customers.
“He confirmed that Stevensons did hold a small number of legitimate plans with Avalon.”
Further anomalous paperwork was uncovered and search warrants were obtained for the accused’s home and business premises were carried out.
‘Better to start prison term now’
Altogether, Stevenson-Hamilton admitted selling 41 non-existent funeral plans.
He was cleared of selling a further 11 bogus plans.
The total amount of money he stole was £130,207.
His solicitor explained he had no previous convictions.
Sheriff Elizabeth McFarlane remanded Stevenson-Hamilton in custody and ordered reports ahead of sentencing him.
She said there was no point delaying the prison sentence until they are ready, adding: “I suspect it’s better to start that now.”
He will be sentenced on August 25.
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