§ 90-210.70. Penalties. - North Carolina Statutes

§ 90‑210.70.  Penalties.

(a)        Anyone who embezzles or who fraudulently, or knowingly andwillfully misapplies, or in any manner converts preneed funeral funds to hisown use, or for the use of any partnership, corporation, association, or entityfor any purpose other than as authorized by this Article; or anyone who takes,makes away with or secretes, with intent to embezzle or fraudulently orknowingly and willfully misapply or in any manner convert preneed funeral fundsfor his own use or the use of any other person for any purpose other than asauthorized by this Article shall be guilty of a felony. If the value of thepreneed funeral funds is one hundred thousand dollars ($100,000) or more,violation of this section is a Class C felony. If the value of the preneedfuneral funds is less than one hundred thousand dollars ($100,000), violationof this section is a Class H felony. Each such embezzlement, conversion, ormisapplication shall constitute a separate offense and may be prosecutedindividually. Upon conviction, all licenses issued under this Article shall berevoked.

(b)        Any person who willfully violates any other provision ofthis Article shall be guilty of a Class 1 misdemeanor. Each such violationshall constitute a separate offense and may be prosecuted individually.

(c)        If a corporation or limited liability company embezzles orfraudulently or knowingly and willfully misapplies or converts preneed funeralfunds as provided in subsection (a) hereof or otherwise violates any provisionof this Article, the officers, directors, members, agents, or employeesresponsible for committing the offense shall be fined or imprisoned as hereinprovided.

(d)        The Board shall have the power to investigate violations ofthis section and shall deliver all evidence of violations of subsection (a) ofthis section to the district attorney in the county where the offense occurred.The Board shall, with the fees collected under this Article, employ legalcounsel and other staff to monitor preneed trusts, investigate complaints,audit preneed trusts, and be responsible for delivering evidences to thedistrict attorney when there is evidence that a felony has been committed by alicensee. The record of complaints, auditing, and enforcement shall bepresented in an annual report from the Board to the General Assembly.

(e)        Whenever it shall appear to the Board that any person, firm,or corporation has violated, threatens to violate, or is violating anyprovisions of this Article, the Board may apply to the courts of the State fora restraining order and injunction to restrain these practices. If uponapplication the court finds that any provision of this Article is beingviolated, or a violation is threatened, the court shall issue an orderrestraining and enjoining the violations, and this relief may be grantedregardless of whether criminal prosecution is instituted under the provisionsof this subsection. The venue for actions brought under this subsection shallbe the superior court of any county in which the acts are alleged to have beencommitted or in the county where the defendant in the action resides. (1969, c. 187, s. 8; 1985, c. 12, s. 1; 1991 (Reg. Sess., 1992), c.901, s. 2; 1993 (Reg. Sess., 1994), c. 767, s. 28; 1997‑399, ss. 31, 32;1997‑443, s. 19.25(o); 2003‑420, s. 15.)