By ANNIE GOELLER, Daily Journal of Johnson County staff writers
A Franklin attorney has been named temporarily to oversee the daily and financial operations of a cemetery and funeral home on State Road 135 and others throughout Indiana, Ohio and Michigan.
Lynette Gray, a partner in Franklin law firm Johnson Gray & MacAbee, was named temporary receiver of Memory Gardens Management Corp., which includes Forest Lawn Memory Gardens and Funeral Home and other properties owned by Robert Nelms.
The appointment comes days after former manager Debora Johnson, 48, and owner Nelms, 39, were charged with multiple felonies, including theft and violation of cemetery perpetuation funds.
Officials accused the two of transferring $22 million from a cemetery trust fund state law requires to be used for care and maintenance of cemeteries and spending some of the money on personal expenses.
According to a court order, Gray's role is to take control; assume management of the day-to-day operations; and gather and account for all trust fund assets of Memory Gardens Management Corp.
Gray, who met with company officials Tuesday, said she didn't know all of the details of the case but that her job will be to help ensure that services are provided and trust funds are protected.
Johnson Circuit Judge Mark Loyd named Gray from a list composed mostly of attorneys and paralegals submitted by the Indiana attorney general's office and the Meyer family, which sold the properties to Nelms.
Loyd could decide to permanently name Gray as receiver, could name someone else or could determine that a receiver is not needed.
A hearing is scheduled Friday to begin discussions, which could continue through Monday.
Since Nelms and Johnson were charged, Loyd has had telephone conferences with attorneys for both sides on immediate issues with the cemeteries and funeral homes, including how burials and services should be conducted, the judge said.
As receiver, Gray would oversee the daily operations of Memory Gardens Management Corp., Loyd said.
She also would keep track of debts and assets of the corporation, he said.
The Meyer family, which sold 14 properties in Indiana, Michigan and Ohio to Nelms in 2004, filed a civil lawsuit earlier this month, accusing Nelms of misspending money in the trust funds and asking the court to name a receiver for the properties.
The attorney general's office was added as a plaintiff in the case, according to court records.