Man Accused of Grand Theft Involving Cremation Policies

Authorities say a Santa Ana man stole thousands of dollars from more than 80 Ventura County residents by selling them pre-need cremation policies and then spending the cash on himself.

Irwin Karp, 63, was in court Thursday where he entered a not guilty plea to 27 counts of grand theft--charges that could bring him up to four years in prison. Bail for Karp, who is unemployed, was set at $10,000.

For several years Karp ran a company called Pre-need Policies, a business licensed by the state and created to allow people to purchase policies covering cremation costs after death, authorities said. About half of a $1,000 policy covered administrative costs, with the remainder supposedly placed in a trust account to earn interest and eventually pay for the cremation, authorities said.

Authorities said several family members tried to turn in their loved ones’ policies only to discover their relative’s money was long gone, with nothing left to pay for the cremation.

Most of the policies were purchased between 1993 and 1994. Karp ran his business out of Santa Ana, but used mailers and telemarketing to recruit his customers from all over the state, authorities said.

Complaints flooded the state-licensing agency in 1995 and 1996, prompting officials to yank Karp’s license.

But local authorities were never notified by the licensing agency, and it was not until recently, when other victims complained to the Sheriff’s Department, that a criminal investigation began into the alleged thefts, authorities said.

Investigators have already identified as many as 85 potential victims in Ventura County, but authorities believe there may be up to 200 victims throughout the state. Authorities said since many of the victims in the case are elderly, Karp could also have been charged with elder abuse. But because of the delay between the time Karp’s license was revoked and when the Sheriff’s Department began its investigation, the statute of limitations for the elder abuse charge ran out.

Karp will appear in court again April 28 for a preliminary hearing.