Chadrick “Chad” Mundy, owner of Mundy Funeral Home in Jamestown, Tenn., was indicted on 52 counts after an audit and a TBI investigation uncovered alleged fraudulent preneed insurance claims, missing documentation and mishandled cremated remains. Insurer records reportedly showed multiple death claims for people later confirmed alive, amounting to roughly $70,000, plus an additional ~$17,840 tied to a guardianship program. A family says the urn they received could not contain their relative’s ashes after the crematorium said the funeral home never retrieved them; Mundy was arrested Sept. 23 on an $80,000 bond. The charges are allegations pending legal proceedings.
Tennessee Funeral Home Owner Indicted on 52 Counts After Audit and Family Says Urn Lacked Loved One’s Remains
Image Credit: Fentress County Sheriff's Office.
Chadrick “Chad” Mundy, owner of Mundy Funeral Home in Jamestown, Tenn., was indicted on 52 criminal counts after a state investigation and an audit of the funeral home’s preneed business raised allegations of insurance fraud, theft, financial exploitation and mishandling of cremated remains.
Indictment and Charges
The Fentress County grand jury charged Mundy with a broad range of alleged offenses, including 12 counts of fraudulent insurance acts, 15 counts of theft of property valued above $2,500, additional theft counts for other value ranges, nine counts of financial exploitation of an elderly or vulnerable adult, four counts of abuse of a corpse, two counts of criminal simulation and one count related to a worthless check. Mundy was arrested on Sept. 23 and booked on an $80,000 bond.
Audit Findings and Insurance Records
At the Tennessee Board of Funeral Directors and Embalmers meeting on Aug. 11, a legal representative summarized results of a July 22 audit that reviewed the funeral home’s preneed records from Jan. 1, 2025, through June 30, 2026. The audit identified significant recordkeeping gaps: three files lacked death certificates, 13 files had no documentation of insurance payment sources, and 15 contracts lacked supporting paperwork.
Investigators also reviewed insurer records from Homesteaders Life Company. Those records reportedly showed at least five policies for which a death claim had been filed even though the insured person was later confirmed to be alive. One such case emerged when a living customer tried to transfer a policy and the insurer discovered a prior death claim. The auditor reported roughly $70,000 in suspected fraudulent preneed claims from Homesteaders records and an additional ~ $17,840 linked to individuals in a guardianship program.
The Stockton Family Complaint
The investigation was foreshadowed by a complaint from the family of Janie Carol Stockton, 66, who died Dec. 31, 2025. The family held a Jan. 10 memorial at Mundy Funeral Home and had been asked to make donations through the funeral home. The family later told local media they received an urn and keepsake pendants they believed held Stockton’s cremated remains.
After retaining counsel, the family learned from the crematorium that Mundy Funeral Home had not retrieved Stockton’s remains for more than 50 days following cremation. Based on that information, the family concluded the urn and pendants they were given could not contain Stockton’s ashes. The family also said they did not receive all donations collected through the funeral home, and that a refund check issued later was returned for insufficient funds. Mundy has publicly apologized to the Stockton family, calling the cremation issue an unintentional mistake.
Regulatory Actions
Tennessee regulatory records show summary suspensions affecting Mundy’s funeral director license, the funeral home’s establishment license and the business’s preneed seller registration. The state disciplinary report dated Aug. 13 cites suspected fraudulent activity involving preneed financing and premature death claims as the grounds for the suspensions. Administrative case numbers were disclosed at the board meeting.
What Authorities Say
The Tennessee Bureau of Investigation (TBI) says its agents gathered evidence suggesting fraudulent insurance claims were filed tied to burial policies, that elderly and vulnerable clients may have been financially exploited, and that cremated remains were mishandled. The charges are allegations; Mundy is presumed innocent unless and until proven guilty in court.
Advice for Consumers
The Tennessee Attorney General’s office recommends that consumers considering preneed funeral arrangements: verify that the written agreement matches what was promised; understand cancellation and refund provisions before paying; confirm the funeral business and professionals hold required Tennessee licenses and registrations; and review publicly available disciplinary records. Consumers may submit complaints and supporting documents through Tennessee’s funeral-board complaint system.
Timeline (Selected): May — TBI investigation opened at request of 8th Judicial District Attorney; July 22 — audit of preneed records; Aug. 11 — board presentation; Sept. 23 — Mundy arrested and booked.
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