Owners of Funeral Home With Decaying Bodies Are Charged With Covid Relief Fraud

The Hallfords could each face up to 20 years in prison and a fine of up to $250,000 if convicted in the federal case, according to the federal indictment. Federal prosecutors did not immediately respond to requests for comment on Monday.

From March 2020 to October 2021, the Hallfords applied for small-business loans for pandemic relief, obtaining three separate payments that totaled $882,300, according to the indictment. In paperwork they submitted to the Small Business Administration, the Hallfords said that they were not involved in criminal activity, “when in truth and in fact, the Hallfords were jointly engaged in a separate, ongoing wire fraud scheme to defraud customers of their business,” according to the federal indictment.

Once the Hallfords received their loans, a “substantial portion” of the money was spent to fuel a lavish lifestyle, according to the indictment. The Hallfords spent money from their S.BA. loans on a vehicle, “multiple vacations,” eating out, cryptocurrency, cosmetic medical procedures, jewelry and tuition for a child.

“The Hallfords used the bulk of the loan proceeds for their personal benefit,” the indictment said.

Court documents in the state case further detail how the Hallfords spent money from their pandemic relief loans. The couple spent thousands on trips to California, Florida and Las Vegas, $3,400 on jewelry from Tiffany and more than $19,000 on items from Amazon, according to records in El Paso County District Court.

The Hallfords also netted $130,000 from families paying for cremations or burials that were never performed, according to the federal indictment.