Issue #8 · August 25, 2026
56 Bodies, Again, From the Same Operators; 37 Charges in Terre Haute; Selected Members Organize Against the NFDA Deal
The day after Illinois suspended Johanna Morgan's license, authorities found 56 decomposing bodies at her Far South Side funeral home, run by the same operators who lost a crematory in 2025 over about 100 bodies. In Indiana, Gary Greiner faces 37 charges over $552,000 in prepaid funeral money, and the first organized opposition has emerged to the NFDA-Selected deal.
By Heidi Macomber, Founder, Obitley
The state suspended her license on August 5. The next day, authorities found 56 bodies.
On August 5, 2026, the Illinois Department of Financial and Professional Regulation suspended the funeral director and embalmer license of Johanna Morgan, citing "multiple decedents to be kept in an unrefrigerated area with deplorable conditions including rodent infestation, causing decomposition and maggot infestation of the bodies." The next day, authorities walked through South Chicago Chapel at 2939 E. 95th St. on Chicago's Far South Side, after a complaint alleged remains were not being stored at or below 40 degrees Fahrenheit as state rules require. They found 56 decomposing bodies.
More than 50 containers of cremated remains were recovered from the same building, and Chicago police are working to locate their next of kin. As of August 24, the Cook County medical examiner had identified 47 of the bodies. Nine cases remain unsolved.
The operators were known to the state. State business records list Morgan's husband, Clark X. Morgan, as the funeral home's president. IDFPR revoked his funeral director and embalmer intern license and fined him $10,000 in 2024 for practicing on an expired license. The couple also ran Heights Crematory in Chicago Heights, shut down by the state comptroller in 2025 after about 100 bodies were found in inoperable refrigerated trailers. The Morgans face more than 20 lawsuits over that case.
A Tribune investigation found regulators visited the facility at least twice before the discovery. Illinois licenses the directors and regulates the crematories, but funeral home inspections typically start only after a complaint. The first hearing in a proposed class action is scheduled for October 13 in Cook County Circuit Court. Obitley has filed three records requests with Illinois regulators since July 17. As of publication, they have produced zero records. On August 25, Obitley asked the Illinois Attorney General's Public Access Bureau to review one of them, a request on preneed trust oversight that was deemed denied on August 21 after the department missed the update deadline it set in its own extension letter.
Source: Obitley investigation, August 25, 2026. IDFPR suspension order of August 5, 2026. Cook County medical examiner status reports. Chicago Tribune. Illinois state business records.
Consumer Protection
Thirty-seven charges, $552,000 in prepaid funeral money, and a prosecutor calling it a first wave
Gary Greiner, the longtime Terre Haute funeral director whose business closed in January, was charged on August 20 with 37 counts: one count of corrupt business influence, a Level 5 felony, 35 Level 6 felony counts of theft or fraud, and one misdemeanor theft count. Vigo County Prosecutor Terry Modesitt announced the charges at a 2 p.m. news conference and calls them a first wave, with more coming.
The probable cause affidavit carries the core allegation: about 142 prepaid funeral contracts were processed by Greiner and never deposited with a trust fund or insurance company. Indiana law requires that placement within 30 days. The deposit requirement exists so the money survives the funeral home that collected it. The prosecutor puts the total at more than $552,000 in preneed payments; the Indiana Attorney General's licensing complaint says 147 clients were defrauded of more than $550,000.
The Tribune-Star, citing Vigo County Jail records, reports Greiner was booked just before 12:45 p.m. and released about 2:40 p.m. after posting a $50,000 cash bond. The charges allege the same conduct regulators revoked his licenses for two weeks earlier.
Regulatory
No ties, except the rent and half the profits: Indiana board denies branch license at Greiner's former funeral home
The same August 6 board meeting that revoked Gary Greiner's licenses also closed the door on his building's next operator. The Indiana State Board of Funeral and Cemetery Service voted 4-0 to deny Edmondson Family Funeral Home Inc. a branch license for the former Greiner Funeral Home at 2005 N. 13th St. in Terre Haute.
Board member Thomas Sproles asked the applicant what ties the new business would have to Greiner. Owner Jeff Edmondson answered that there would be none. The lease said otherwise: $3,500 per month, triple net, with Section E providing that Edmondson and Greiner would "equally split 50% each the net profits on a monthly basis." Confronted with that section, Edmondson acknowledged it.
"He still owns the funeral home, still is pulling the strings on the funeral home," Sproles said before moving to deny. The vote was 4-0. The minutes reconstruct a rare case of a licensing board catching a continuation attempt before it could start.
Consolidation
A vote on a document members cannot read: first organized opposition to the NFDA-Selected deal
Two sixth-generation members of Selected Independent Funeral Homes went public on August 20 with a call for members to reject the proposed combination with the National Funeral Directors Association. It is the first organized, named opposition since the deal was announced July 29.
Nathanael M. Billow and Paul C. St. Pierre are establishment figures, which is what makes the break notable. Billow's Ohio firm has been a Selected member since 1933. St. Pierre served as the association's president in 2020. Their central objection is definitional: NFDA's own FAQ confirms the transaction "would be structured as an acquisition of Selected Independent Funeral Homes by NFDA," reducing Selected to two minority board seats and an advisory committee they say has no formal authority.
Both men said they separately requested the letter of intent that members are being asked to approve. Legal counsel for both organizations told them the document is confidential and cannot be shared with members. In a poll of 70 firms, the two men say 85 percent lean no.
On the Horizon
Stories and projects in development
- ›October 13, Chicago: First hearing in the proposed class action over South Chicago Chapel in Cook County Circuit Court. The suit counts 57 bodies.
- ›Terre Haute: Vigo County Prosecutor Terry Modesitt calls the 37 charges against Gary Greiner a first wave, with more charges coming.
- ›NFDA-Selected: Members face a vote on a letter of intent they cannot read. Opponents report 85 percent of 70 firms polled lean no before the Louisville vote.
- ›Sentencing pending: Gregory Stefan Jr. pleaded guilty to federal wire fraud in June 2026. A sentencing date has not been set. He faces up to 152 years in prison.
- ›November 10, Wheeling, West Virginia: Jeffrey Phares is sentenced for wire fraud after a March guilty plea. Court documents identify 225 victims owed more than $600,000 for grave markers never delivered.
- ›September 17, Tampa: A formal report on options for land adjacent to Marti-Colon Cemetery, where a 2024 radar study identified 16 subsurface anomalies.
- ›In development: Obitley's investigation into state funeral home inspection ratios continues, with public records requests pending in multiple jurisdictions. Illinois regulators have produced zero records in response to three requests since July 17. One Illinois request is now before the Attorney General's Public Access Bureau.
- ›Preneed trust records project: Determinations from California and Kansas are due September 8. Four more states (Washington, Louisiana, Kentucky, Connecticut) received resubmitted requests on August 25 after the originals bounced.
By the Numbers
Decomposing bodies found at South Chicago Chapel on August 6, the day after the state suspended Johanna Morgan's license. The class action counts 57.
Bodies identified by the Cook County medical examiner as of August 24. Nine cases remain unsolved.
Approximate bodies found in inoperable refrigerated trailers at Heights Crematory in 2025, run by the same operators. The crematory's license was permanently revoked in June 2025.
Criminal charges filed against Gary Greiner on August 20, which the prosecutor calls a first wave
Preneed payments Vigo County Prosecutor Terry Modesitt says Greiner took
Prepaid contracts the probable cause affidavit says were never deposited with a trust or insurer. Indiana law requires placement within 30 days.
Share of 70 Selected firms polled by Billow and St. Pierre that lean against the NFDA deal
Records produced by Illinois regulators in response to Obitley's three requests since July 17
From Obitley This Week
4 new investigations published on obitley.com:
56 BODIES, AGAIN
Same owners, a new facility, and the funeral home no Illinois agency was watching
THIRTY-SEVEN CHARGES
Terre Haute prosecutor says Gary Greiner took more than $552,000 in prepaid funeral money
NO TIES
Indiana board denies a branch license after the owner details a 50/50 profit split with Greiner
REJECT THE DEAL
Two sixth-generation members call for rejecting the NFDA-Selected takeover
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Founder, Obitley · obitley.com
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