Victims `at most vulnerable': Judge

Former funeral director sentenced for $386K fraud

“I took a 46-year career and threw it out the window,” former funeral director Paul Taylor told a Simcoe Ontario Court judge on Thursday after being convicted of a major fraud.

“At first, I saw myself trying to save the funeral home and now I see I breached people's trust. That's all I can say.”

Taylor, once owned and operated Baldock Funeral Homes Inc. and South Coast Funeral & Cremation Alternatives in Simcoe.

But, after his son expressed concerns abut financial improprieties to the Bereavement Authority of Ontario, the regulator began investigating Taylor, suspending the licences of the two funeral facilities at the beginning of 2020 and eventually turning up evidence of fraud, theft, forged documents and Taylor's breach of trust.

In total, the Bereavement Authority found Taylor had committed fraud to the tune of $386,064.97 over about 10 years.

“That you would be standing here, facing this, was inevitable from the moment you started,” said Justice Robert Gee.

“You were never going to catch up. During that 10-year period you had to realize your behaviour was criminal and had the potential to harm people when they were at their most vulnerable.”

Gee noted that in one victim impact statement, a woman said Taylor took funds from her husband just months before his arrest “knowing this 'house of cards' was about to crumble.

In an agreed statement of facts, read to the court when Taylor pleaded guilty to fraud last November, it was revealed how Taylor defrauded the Bereavement Authority of hundreds of thousands of dollars.

At least 16 cases were found where Taylor used fraudulent death certificates or told banks he was moving trust funds that had been prepaid for funerals to other banks, totalling almost $140,000.

At least 29 people were found who prepaid almost $170,000 for funerals and the money wasn't put in a trust fund but used for operating expenses, which is illegal.

Another 73 estates didn't get the proper refunds owed to them after a reconciliation of what was prepaid, interest earned and the final cost of the funeral. That came to about $76,765.

And Taylor took a small amount of donations – $270 – that were meant for the charity of a deceased person's choice but never was paid out.

Funds were paid out to about 100 people by the Bereavement Authority, which has a special fund to reimburse any victims of funeral home fraud, so Taylor now owes $386,064.97 to the regulator and so far, has paid none.

Assistant Crown attorney Lynette Fritzley said she and defence lawyer James Battin had reached a joint submission for the court that would see Taylor, soon to turn 70 and facing hip surgery, working on restitution while on an 18-month community sentence, followed by three years of probation.

“This is perhaps at the lower end of the range for fraud,” said Fritzley, “but he has no criminal record and pleaded guilty relatively early."

As well, said the lawyer, Taylor has been shamed as his actions have become known.

“There's a certain amount of community justice,” Fritzley said.

“He was a well-known member of the community. He's been facing the condemnation of the community and will continue to deal with it.”

Gee said Taylor's loss of stature in the community was a consequence he had to have been aware of when he decided to commit fraud.

“Businesses fail often and that shouldn't lead to criminal behaviour to avoid the stigma.”

The judge agreed with the 18-month community sentence with a year of GPS-monitored house arrest, although he said it was on the “light end” of the range, and three years of probation.

During that time Taylor will pay $1,000 on the first of each month.

Gee pressed to ensure that Taylor can manage those payments, pointing out that missing them will be a breach and could lead to real jail “regardless of your age, health and the fact you have no other entries on your record.”

Taylor will be able to leave his house for work, emergencies, church and on Saturday afternoons but can't be in charge of other people's money.

At the end of his probation, presumably having paid $54,000 to the Bereavement Authority, the remainder of the repayment will become a stand-alone restitution order and the regulator will be able to pursue Taylor civilly.

The Bereavement Authority posted the details of Taylor's conviction and sentence on its website Thursday and said it has nothing to add about the situation.