The owner of Affordable Casket & Moanalua Mortuary pleaded guilty in state court Friday to stealing state death benefits from Medicaid clients. He accepted a plea deal that will send him to jail for 30 days.
Claus Z. Hansen, 51, pleaded guilty to seven counts of theft.
First Circuit Court Judge Dean Ochiai adjudged Hansen guilty, accepted the plea deal and scheduled sentencing for Dec. 22. Hansen is expected to begin his jail term immediately after sentencing and remains free on his own recognizance until then.
In addition to the jail term, Hansen’s plea deal with the state attorney general requires him to pay restitution and $50,000 into a state fund for crime victims. He has already repaid most of the $91,866 he withheld between April 2009 and May 2013 from survivors who paid his company for burial, cremation or funeral services. He will also have to perform 300 hours of community service.
Hansen’s convictions have immigration implications because he is not a U.S. citizen.
An Oahu grand jury returned an indictment against Hansen on April 23, and the following day he posted $250,000 cash bail. In August, Ochiai allowed Hansen to reclaim the $250,000 by granting his request to remain free without having to post bail.
He had been charged with 20 counts of theft, three counts of money laundering and six counts of racketeering for stealing state death benefits.
Survivors of people who are in Medicaid-funded state assistance programs at the time of their deaths can apply for up to $800 to help pay for burial, cremation or funeral services under the state’s Funeral Payments Program. The state paid money to vendors who provided the service, and they in turn were supposed to reimburse the survivors.
Hansen was charged with withholding 129 reimbursements.
The state Department of Human Services, whose Med-Quest Division administers the Funeral Payments Program, has since changed program rules to allow the state to pay the death benefit directly to the survivors.