Mortuary owner pleads guilty to stealing state death benefits
Claus Z. Hansen, owner of Affordable Casket and Moanalua Mortuary, pleaded guilty today in Circuit Court to seven counts of felony theft for stealing state death benefit money from Medicaid clients.
Under a plea agreement, Hansen will serve 30 days in jail, pay $50,000 to the Crime Victims Compensation Fund, and perform 300 hours of community service. Hansen will be sentenced Dec. 22.
Attorney General Doug Chin said, “Mr. Hansen preyed on underprivileged people mourning the loss of loved ones. Fortunately, an employee had the courage to step forward and report this crime.”
From 2009 to 2013 the State Medicaid program paid survivors as much as $800 in death benefits to help defray the costs of funeral services, the Attorney General’s Office said.
According to Deputy Attorney General Michael Parrish, “Customers were promised refunds once the State Medicaid program paid benefits to Hansen. Instead, Hansen instructed his employees not to contact the survivors when the money came in or to ignore them if they didn’t pester the mortuary for their promised refund.”