A Tennessee funeral home owner was indicted on 52 criminal counts months after a family said it learned that the urn and keepsake pendants it had received could not have contained its relative’s cremated remains.
Chadrick “Chad” Mundy, 37, owns Mundy Funeral Home in Jamestown. The Tennessee Bureau of Investigation said a Fentress County grand jury charged him with offenses including fraudulent insurance acts, theft, financial exploitation of elderly or vulnerable adults and abuse of a corpse.
The criminal case followed scrutiny of the funeral home’s preneed business and regulatory proceedings involving Mundy and the funeral home. Tennessee records show summary suspensions involving Mundy’s funeral director license, the funeral home’s establishment license and its preneed seller registration.
TBI agents began investigating in May at the request of 8th Judicial District Attorney General Jared Effler. Mundy was arrested Sept. 23 and booked into the Fentress County Jail on an $80,000 bond.
A Policy Transfer Exposed a Death Claim on a Living Customer
During the Tennessee Board of Funeral Directors and Embalmers’ Aug. 11 meeting, a legal representative presented findings from a July 22 audit of Mundy Funeral Home’s preneed records. The review covered records from Jan. 1, 2025, through June 30, 2026.
The presentation identified three files without death certificates, 13 without insurance payment-source documentation and 15 contracts with no supporting documentation. The auditor also obtained records from Homesteaders Life Company while reviewing claims connected to the funeral home’s preneed business.
According to the presentation, Homesteaders records showed at least five policies in which a death claim had been filed even though the insured person was confirmed to be alive. One came to light when a living customer tried to transfer a policy to another funeral home and the insurer discovered that a death claim had already been submitted.
The presentation also identified a claim involving Mundy’s wife, whom the insurer confirmed was alive. Board members were told that the suspected fraudulent preneed claims included approximately $70,000 identified through Homesteaders records and another approximately $17,840 associated with people in a guardianship program.
A Family Says the Urn Did Not Contain Janie Stockton’s Remains
Janie Carol Stockton, 66, died Dec. 31, 2025. Her obituary listed a Jan. 10 memorial visitation at Mundy Funeral Home and asked people to make donations toward funeral expenses through the funeral home.
Amy Stockton later told WATE that the family received an urn and keepsake pendants they believed contained Janie Stockton’s cremated remains. After the family hired an attorney, the attorney was told by the crematorium that Mundy Funeral Home had not picked up Stockton’s remains for more than 50 days after her cremation.
The family said the urn and pendants it had already received therefore could not have contained Stockton’s remains. Amy Stockton also said the family did not receive all of the money donated through the funeral home toward funeral expenses and that a refund check later issued by the funeral home was returned for insufficient funds.
Mundy publicly apologized to the Stockton family and described the cremation problem as an unintentional mistake. The Stockton family’s complaint predates the indictment. Separately, TBI said its investigation produced evidence indicating that Mundy mishandled cremated remains.
State Records Show Three Summary Suspensions
The Board of Funeral Directors and Embalmers’ Aug. 11 agenda listed informal conferences concerning summary suspensions for Mundy and Mundy Funeral Home. Mundy’s proceeding was listed as case FUN-2026031401 and identified funeral director license No. 3631. The funeral home’s proceeding was listed as case FUN-2026031281 and identified establishment license No. 237.
The state’s August disciplinary report records summary suspensions involving the funeral home’s preneed seller registration, its funeral establishment license and Mundy’s individual funeral director license. The report gives an Aug. 13 action date and identifies fraudulent activity involving preneed financing and premature death claims as the stated violation.
Tennessee requires a funeral establishment or other entity offering or selling preneed funeral contracts to register as a preneed seller. For money-funded contracts, the state requires a trust instrument with a qualified trustee. A person selling, soliciting or negotiating prearrangement insurance policies must also hold the required preneed and insurance producer credentials.
The Indictment Includes Fraud, Theft and Abuse of a Corpse
The Fentress County grand jury charged Mundy with 12 counts of fraudulent insurance act and 15 counts of theft of property valued above $2,500, according to TBI.
He also faces five theft counts involving property valued above $1,000, four theft counts involving less than $1,000, nine counts of financial exploitation of an elderly or vulnerable adult, four counts of abuse of a corpse, two counts of criminal simulation and one count involving a worthless check.
TBI said its agents gathered evidence indicating that Mundy filed numerous fraudulent insurance claims connected to burial policies, financially exploited elderly and vulnerable clients for personal gain and mishandled cremated remains.
The charges are accusations. Mundy is presumed innocent unless and until proven guilty in court.
Preneed Buyers Can Check the Contract and the License
The Tennessee Attorney General advises consumers considering preneed arrangements to make sure the written agreement matches what they were told and to understand the contract’s cancellation and refund provisions before paying.
Consumers can also check whether a funeral professional or business holds the required Tennessee license or registration and review publicly available disciplinary information. Businesses offering preneed funeral contracts must hold the appropriate state registration.
Tennessee’s funeral-board complaint system allows consumers to submit supporting documents with a complaint involving a funeral establishment or regulated professional.