Cemetery co-owners Theodore and Arminda Martin were convicted of conspiring to commit mail fraud after embezzling approximately $500,000 in preneed cemetery service payments from at least 200 customers for personal use including gambling; Theodore was sentenced to 13 months in federal prison, Arminda to 12 months and one day.

Suburban Memorial Gardens Cemetery — Preneed Fraud (2010–2016)

Outcome: Cemetery co-owners Theodore and Arminda Martin received federal prison sentences after embezzling approximately $500,000 in preneed cemetery payments from at least 200 customers, spending the funds on personal expenses including gambling.

Background

Suburban Memorial Gardens Cemetery is located in Dover Township, York County, Pennsylvania (Conewago Township area). Theodore Martin, age 54 at the time of indictment, and his wife Arminda Martin, age 47, owned and operated the cemetery between approximately 2003 and 2016.

The Fraud Scheme

Between 2010 and on or about 2016, the Martins accepted preneed payments from at least 200 customers — families who paid in advance for cemetery services, burial plots, grave markers, and related services for themselves or deceased family members. Pennsylvania law requires that preneed cemetery payments be held in trust for the benefit of customers.

Instead of depositing these funds into required trust accounts, the Martins applied the customers' payments to their personal finances, including for gambling. Customers who had paid in full for cemetery services discovered that no funds had been set aside when they attempted to use the prepaid services.

The scheme involved use of the U.S. mail — qualifying the conduct as federal mail fraud — in the transmission of contracts, statements, and correspondence related to the preneed arrangements.

Federal Indictment and Prosecution

A federal grand jury in the Middle District of Pennsylvania indicted both defendants on mail fraud and conspiracy to commit mail fraud charges. The case was prosecuted by the U.S. Attorney's Office for the Middle District of Pennsylvania.

Both defendants pleaded guilty.

Sentences

• Theodore Martin (age 57 at sentencing): Sentenced to 13 months in federal prison, followed by two years of supervised release.
• Arminda Martin (age 49 at sentencing): Sentenced on July 28, 2020, to 12 months' and one day imprisonment, followed by two years of supervised release, for conspiring to commit mail fraud.

Both sentences included downward adjustments of approximately 28–32 months to account for prior prison time served for a related fraud scheme in Ohio.

Aftermath

Following the Martins' imprisonment, Suburban Memorial Gardens fell into disrepair. York Dispatch reporting in 2018 documented that families of the deceased were personally caring for the cemetery grounds, mowing grass and maintaining grave sites, because the owners were imprisoned and no qualified operator had taken over management. The cemetery's future remained uncertain for years.

Primary Source: DOJ USAO Middle District of Pennsylvania — Local Cemetery Owners Indicted For Defrauding 200 Customers Of $500,000 In Pre-Paid Fees