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Dickinson Family Funeral Homes owner Darrell Dickinson, 59, of W5220 Boma Road, pleaded guilty to two felony charges of public assistance fraud in a courtroom filled with supporters. He faces a maximum of three years in prison and a $20,000 fine when sentenced Aug. 22 in La Crosse County Circuit Court.
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Darrell Dickinson waits in court for his initial appearance on charges of public assistance fraud.
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“Mr. Dickinson regrets the fact that he broke the law, he regrets any pain caused to his family or shame he imposed on himself, the community or his customers,” said Dickinson’s attorney, Sean Bosack of Milwaukee.
Dickinson entered the plea during his initial appearance, a common step in white-collar cases, Bosack said.
The 20-page criminal complaint filed against Dickinson by the state Department of Justice accuses him of making fraudulent claims to the state for assistance with funeral costs for Medicaid recipients and indigent people while charging their families full funeral costs.
The complaint lists 27 similar cases between 2003 and 2006, though charges were filed in only two incidents.
The state provides financial assistance for funerals and burials of Medicaid recipients and indigent people under the Funeral and Cemetery Aids Program. Funding is provided by the state Department of Health and Family Services’ Division of Health Care Financing.
The county will pay the funeral home up to $1,500 if the total funeral costs are $3,500 or less and up to $1,000 if the total burial costs do not exceed $3,500.
Counties are reimbursed with public assistance funds from the state Department of Health and Family Services through the state Funeral and Cemetery Aids Program.
A warranted search was done at the funeral home at 1425 Jackson St. about 12:30 p.m. Jan. 31, 2007. While pulling files of the 27 names provided by the investigator, Dickinson said, “Medicaid does not pay enough for the funerals. What they pay does not cover the cost of the funeral,” according to the complaint.
Later, Dickinson said, “It was expensive to have two kids in college at the same time,” the complaint stated.
A funeral home file contained a faxed claim form to the county June 16, 2006, for a funeral charge of $3,500 and cemetery charge of $2,337. The version sent to the woman’s family June 10 showed an $8,050 funeral expense and $477 cemetery charge, according to the complaint.
The county paid Dickinson $2,500 for the funeral and cemetery charges, based on his “false information,” the complaint stated.
Dickinson submitted a claim to the county Nov. 7, 2006, for a funeral charge of $3,280 and cemetery charge of $1,727. The version sent to the man’s family listed a $7,695 funeral expense and $577 cemetery charge, according to the complaint. The county paid Dickinson $2,500.
Dickinson has cooperated with authorities throughout the 17-month investigation, Bosack said, and paid $55,000 in restitution.
An identical charge was filed against funeral director Gary Sebranek, 58, of 6007 E. Robil Court. He pleaded guilty and faces nine months in jail during his sentencing Aug. 25.
Sebranek’s charge stems from a similar incident April 24, 2006, where a document signed by him and submitted to the county in the death of a Medicaid recipient listed a total funeral charge of $3,500, according to the complaint. The bill sent to the woman’s family was $5,160. The county paid the funeral home $2,500.
Dickinson and Sebranek are free on signature bonds.
Wisconsin Attorney General J.B. Van Hollen said this type of fraud affects more than just the state.
“When people steal from public assistance funds, they are stealing from those who have been identified as in most need and from the tax-paying citizens who fund this assistance,” Van Hollen said Thursday.
Anne Jungen can be reached at (608) 791-8224 or ajungen@lacrossetribune.com.
