Case 7:12-cv-03733-NSR Document 18 Filed 01/02/14 Page 1 of 14

UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF NEW YORK 

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UNITED STATES OF AL\r!ERICA, 

Plaintiff, 

v. 

HARRJSON FUNERAL HOME, INC. and 

JOHN BALSAMO, 

Defendants. 

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R.oMii.n, U.S. D. J 

12 Civ. 03733 ~(NS R) 

CONSENT DECREE 

ECF Case 

Plaintiff, the United States of America, by its attorney Preet Bharara, United States 

Attorney for the Southern District of New York, acting upon notification and authorization to the 

Attorney General by the Federal Trade Commission ("Commission" or "FTC"), filed its Amended 

Complaint for a permanent injunction, civil penalties, and other relief in this matter, pursuant to 

Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act("FTC Act"), 15 U.S.C. §§ 

53(b) and 56(a)(l) on October 5, 2012. Defendants Harrison Funeral Home, Inc. and John 

Balsamo filed their Answer on November 16, 2012. Through counsel, having filed a joint 

motion, Plaintiff and Defendants Harrison Funeral Home, Inc. and John Balsamo stipulate to the 

entry of this Consent Decree ("Order") to resolve all matters in dispute in this action between 

them. 

THEREFORE, IT IS ORDERED as follows: 

USDCSDNY 

DOCUMENT 

ELECTRONICALLY FILED 

DOC#:. ____ _,~-----

DATE FILED: t/:J./2ol~ 
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FINDINGS 

I. This Court has jurisdiction over this matter. 

2. The Amended Complaint charges that Defendants patticipated in deceptive acts or 

practices in violation of the FTC Act, 15 U.S.C. §§ 45(a) and 45(m)(l)(A), for violations of the 

FTC's trade regulation rule conceming funeral industry practices, 16 C.F.R. Part 453. 

3. Defendants neither admit nor deny any of the allegations in the Amended 

Complaint, except that Defendants admit that they violated the Funeral Rule. 

4. Only for purposes of this action, Defendants admit the facts necessruy to establish 

jurisdiction. 

5. Defendants waive any claim that they may have under the Equal Access to Justice 

Act, 28 U.S.C. § 2412, conceming the prosecution of this action through the date of this Order, 

and agree to bear their own costs and attomey fees .. 

6. Defendants and Plaintiff waive all rights to appeal or otherwise challenge or 

contest the validity ofthis Order. 

7. The activities of Defendants are in or affecting commerce as "commerce" is 

defined in Section 4 ofthe FTC Act, 15 U.S.C. § 44. 

8. Entry of this Order is in the public interest. 
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DEFINITIONS 

A. "Defendants" means the Individual Defendant and the Corporate Defendant, 

individually, collectively, or in any combination. 

B. "Corporate Defendant" means Harrison Funeral Home, Inc., and its successors 

and assigns. The Corporate Defendant is a "funeral provider" offering "funeral goods" and 

"funeral services" under 16 C.F.R. §§ 453.l(h)-G). 

C. "Individual Defendant" means John Balsamo. 

D. "Funeral goods" are the goods which are sold 01· offered for sale directly to the 

public for use in connection with funeral services. 

E. "Funeral Rule" or "Rule" means the Trade Regulation Rule Conceming Funeral 

Industry Practices issued by the Federal Trade Commission ("FTC" or "Commission"), 16 

C.F.R. Pmi 453. Copies of the Funeral Rule and the FTC publication, "Complying with the 

Funeral Rule," are attached hereto as Exhibits A and B, respectively. 

F. "Funeral services" are any service which may be used to: (1) care for and 

prepare deceased human bodies for burial, cremation or other final disposition; and (2) arrange, 

supervise, or conduct the funeral ceremony or the final disposition of deceased human bodies. 

I. INJUNCTION 

IT IS ORDERED that Defendants, Defendants' officers, agents, servants, employees, and 

attorneys, and all other persons in active concert or participation with any of them, who receive 

actual notice of this Order, whether acting directly or indirectly, in connection with selling or 

offering to sell funeral goods and funeral services to tile public m·e permanently restrained and 

enjoined from violating, directly or thl·ough any corporation, subsidiary, division, or other 
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device, any provision of the Funeral Rule, including, but not limited to, the Rule's prohibitions 

against: 

A. Failing to give consumers who inquire in person a general price list they can keep 

upon beginning discussion of the overall type of funeral service or disposition, specific funeral 

goods or services offered, or the prices of such goods or services; 

B. Failing to show consumers who inquire in person about the offerings or prices of 

caskets or alternative containers a casket price list upon beginning discussion of caskets, but in 

any event before showing any caskets, models, or pictures of caskets; 

C. Failing to show consumers who inquire in person about the offerings or prices of 

outer burial containers an outer burial container price list upon beginning discussion of outer 

burial containers, but in any event before showing any outer burial containers, models, or 

pictures of outer burial containers; 

D. Failing to include the following disclosure clearly and conspicuously on 

Defendants' general price list: 

"The goods and services shown below are those we can provide to 

our customers. You may choose only the items you desire. If 

legal or other requirements mean you must buy any items you did 

not specifically ask for, we will explain the reason in writing on 

the statement we provide describing the funeral goods and services 

you selected." 

Provided, however, that if the basic services fee cannot be declined by the purchaser, the 

disclosure must include the sentence: _"However, any funeral arrangements you select will 

include a charge for our basic services" between the second and third sentences of the disclosure. 

Provided further, that this sentence may include the phrase "and overhead" after the word 

"services" if the fee includes a charge for the recovery of unallocated funeral provider overhead; 
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E. Failing to give any person who asks by telephone about Defendants' offerings or 

prices accurate information from Defendants' price lists and any other readily available 

information that reasonably answers the question; 

F. Failing to give each person who arranges a funeral or other disposition of human 

remains an itemized written statement of all funeral goods and services selected to keep at the 

conclusion of the discussion of anangements; 

G. Requiring the purchase of any funeral good or funeral service as a condition of 

furnishing any other funeral good or funeral service, except as required by law or as otherwise 

pe1mitted by the Rule; 

H. Requiring payment of any fee as a condition of furnishing any funeral good or 

funeral service to a person ananging a funeral, other than the fees for: (1) the services of 

funeral director and staff (the "basic services fee"); (2) other funeral services and funeral goods 

selected by the purchaser; and (3) other funeral goods or services necessitated by any legal, 

cemetery or crematory requirements described in writing on Defendants' statement of the funeral 

goods and services a customer has selected; and 

I. Any other provision of the Funeral Rule; provided, however, that pursuant to 16 

C.P.R. § 453.4(b)(3)(ii), Defendants are not required to comply with a request for a combination 

of funeral goods or services that would be impossible, impractical or excessively burdensome to 

provide. 
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II. MONETARY JUDGMENTFORCIVILPENALTY 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of Thirty-Two Thousand Dollars ($32,000.00) is entered 

in favor of Plaintiff against the Individual Defendant and Corporate Defendant, jointly and 

severally, as a civil penalty. 

B. Defendants are ordered to pay Plaintiff, by making a payment to the U.S. 

Deprutment of Justice, Thirty-Two Thousand Dollars ($32,000.00), which, as Defendants 

stipulate, their undersigned counsel will hold in escrow for no purpose other than payment to 

Plaintiff. Such payment must be made in three installments: the first within thirty (30) days of 

entry ofthis Order, the second within sixty (60) days within entry of this Order, and third within 

ninety (90) days within entry of this Order. Payments must be made by Electronic Funds 

Transfer ("EFT"), and include interest accruing from the Date of Lodging, at the rate specified in 

28 U.S.C. § 1961 as of the Date of Lodging, in accordance with instructions previously provided 

by the Financial Litigation Unit of the U.S. Attorney's Office for the Southern District of New 

York. At the time of payment, Defendants shall send a copy of the EFT authorization form and 

EFT transaction record together with a transmittal letter, which shall state that the payment is for 

the civil penalty owed pursuant to the Order in United States of America v. Harrison Funeral 

Home, Inc. et al, and shall reference the civil action number and the U.S. Attorney's Office case 

number 2011 V01359 to the United States. 

C. Defendants relinquish all dominion and all legal and equitable right, title, and 

interest in all assets transferred pursuant to this Order and may not seek to return any assets. 
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D. The facts alleged in the Amended Complaint will be taken as true, without further 

proof, in any subsequent civil litigation filed by or on behalf of the Commission, or by the 

Plaintiff, including in a proceeding to enforce its rights to any payment or monetary judgment 

pursuant to this Order. 

E. Defendants agree that the judgment represents a civil penalty owed to the 

govermnent of the United States, is not compensation for actual pecuniary loss, and, therefore, as 

to the Individual Defendant, it is not subject to discharge under the Bankruptcy Code pursuant to 

11 U.S.C. § 523(a)(7). 

F. Defendants acknowledge that their Taxpayer Identification Numbers (Social 

Security Number or Employer Identification Number), which Defendants previously submitted 

to the Plaintiff and the Commission, may be used for collecting and reporting on any delinquent 

amount arising out of this Order, in accordance with 31 U.S.C. § 7701. 

III. ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of this 

Order: 

A. Each Defendant, within 7 days of entry of this Order, must submit to the 

Commission acknowledgment of receipt of this Order sworn under penalty of perjury. 

B. For S years after entry of this Order, the Individual Defendant, for any business 

selling or offering to sell funeral goods or funeral services that such Defendant, individually or 

collectively with any other Defendant, is the majority owner of, or controls directly or indirectly, 

and the Corporate Defendant, must deliver a copy of this Order to: (1) all principals, officers, 

directors, and LLC managers and members; (2) all employees, agents, and representatives who 
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have contact with consumers who are seeking to arrange a funeral; and (3) any business entity 

resulting from any change in structure as set forth in the Section titled Compliance Reporting. 

Delivery must occur within 7 days of entry of this Order for current personnel. For all others, 

delivery must occur before they assume their responsibilities. 

C. From each individual or entity to which a Defendant delivered a copy of this 

Order, that Defendant must obtain, within 30 days, a signed and dated acknowledgment of 

receipt of this Order. 

IV. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to the 

Commission: 

A. One year after entry of this Order, each Defendant must submit a compliance 

report, sworn under penalty of perjury: 

I. Each Defendant must: (a) identify the primary physical, postal, and email 

address and telephone number, as designated points of contact, which representatives of the 

Commission and Plaintiff may use to communicate with that Defendant; (b) identify all of that 

Defendant's businesses by all of their names, telephone numbers, and physical, postal, email, and 

Internet addresses; (c) describe the activities of each business, including the goods and services 

offered, the means of advertising, marketing, and sales, and the involvement of any other 

Defendant (which Individual Defendant must describe if he knows or should know due to his 

own involvement); (d) describe in detail whether and how that Defendant is in compliance with 

each Section of this Order; and (e) provide a copy of each Order Acknowledgment obtained 

pursuant to this Order, unless previously submitted to the Commission. 
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2. Additionally, Individual Defendant must: (a) identify all telephone 

numbers and all physical, postal, email and Internet addresses, including all residences; 

(b) identify all business activities, including any business for which such Defendant perfmms 

services whether as an employee or otherwise and any entity in which such Defendant has any 

ownership interest; and (c) describe in detail such Defendant's involvement in each such 

business, including title, role, responsibilities, participation, authority, control, and any 

ownership. 

B. For 20 years after entry of this Order, each Defendant must submit a compliance 

notice, sworn under penalty of perjury, within 14 days of any change in the following: 

1. Each Defendant must report any change in: (a) any designated point of 

contact; or (b) the structure of any Corporate Defendant or any entity that Defendant has any 

ownership interest in or controls directly or indirectly that may affect compliance obligations 

arising under this Order, including: creation, merger, sale, or dissolution of the entity or any 

subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order. 

2. Additionally, the Individual Defendant must report any change in: 

(a) name, including aliases or fictitious name, or residence address; or (b) title or role in any 

business activity, including any business for which such Defendant performs services whether as 

an employee or otherwise and any entity in which such Defendant has any ownership interest, and 

identify the name, physical address, and any Internet address of the business or entity. 

C. Each Defendant must submit to the Commission notice of the filing of any 

bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Defendant 

within 14 days of its filing. 
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D. . Any submission to the Commission required by this Order to be swom under 

penalty ofperjm-y must be true and accurate and comply with 28 U.S.C. § 1746, such as by 

concluding: "I declare under penalty of peijury under the laws of the United States of America 

that the foregoing is true and con·ect. Executed on: __ "and supplying the date, signatory's 

full name, title (if applicable), and signature, 

E. Unless otherwise directed by a Commission representative in writing, all 

submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or 

sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bill'eau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 

Washington, DC 20580. The subject line must begin: United States v. Harrison Funeral Home, 

Inc. and John Balsamo, FTC File No.: Xl20051. 

V. RECORDKEEPING 

IT IS FURTHER ORDERED that Defendants must create certain records for 20 years 

after entry of the Order, and retain each such record for 5 years. Specifically, Corporate 

Defendant, for any business that has sold or offered to sell funeral goods or funeral services, and 

Individual Defendant for any business that such Defendant, individually or collectively with any 

other Defendant, is a majority owner of, or controls directly or indirectly, must create and retain 

the following records: 

A. Accounting records showing the revenues from all goods or services sold; 

B. Personnel records showing, for each person providing services, whether as an 

employee or otherwise, that person's: name; addresses; telephone numbers; job title or position; 

dates of service; and (if applicable) the reason for tetmination; 
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C. Complaints and refund requests concerning the sale or offer of funeral goods or 

funeral services, whether received directly or indirectly, such as through a third party, and any 

response; 

D. All records necessary to demonstrate full compliance with each provision of this 

Order, including all submissions to the Commission; and 

E. A copy of each price list, contract, advettisement, and other marketing material for 

the sale or offer of funeral goods or funeral services. 

VI. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendants' compliance 

with this Order, including any failure to transfer any assets as required by this Order: 

A. Within I4 days of receipt of a written request from a representative of the 

Commission or Plaintiff, each Defendant must: submit additional compliance reports or other 

requested information, which must be sworn under penalty of perjury; appear for depositions; and 

produce documents for inspection and copying. The Commission and Plaintiff are also 

authorized to obtain discovery, without further leave of court, using any of the procedures 

prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 3I, 33, 

34, 36, 45, and 69. 

B. For matters concerning this Order, the Commission and Plaintiff are authorized to 

communicate directly with each Defendant. Defendants must permit representatives of the 

Commission and Plaintiff to interview any employee or other person affiliated with any 

Defendant who has agreed to such an interview. The person interviewed may have counsel 

present. 
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C. The Commission and Plaintiff may use all other lawful means, including posing, 

through its representatives as consumers, suppliers, or other individuals or entities, to Defendants 

or any individual or entity affiliated with Defendants, without the necessity of identification or 

prior notice. Nothing in this Order limits the Commission's lawful use of compulsory process, 

pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-l. 

VII. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes 

of construction, modification, and enforcement of this Order. 

:201~ 

SO ORDERED: this _Q_"'_J_ day of_cJ,::.ciA:.:c"'cc":co""',!-Y~----''~ 

NELS~ ~/''/ UNITED STATES DISTRICT JUDGE 
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SO STIPULATED AND AGREED; 

FOR PLAINTIFF: 

THE UNITED STATES OF AMERICA: 

PREETBHARARA 

United States Attorney 

Southern District of New York 

By: 

Ellen Blain 

Assistant United States Attorney 

86 Chambers Street, 3'd Floor 

New York, New York 10007 

Telephone: (212) 637-2743 

Facsimile: (212) 637-2730 

Email:· ellen. blain@usdoj .gov 

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Case 7:12-cv-03733-NSR Document 18 Filed 01/02/14 Page 14 of 14

FO.R THE FIWimAL TRADE 

COi\>IMlSSION: 

.JONATHAN E. NUECHTERI.ElN 

General Counse.J 

WlLLJAi'vl H. EFRON 

Director 

Northeast Region 

Robin 

vc~ E. Eichen. Atlomey ec~ Fedcrnl Tmde Commission 

One Bowling Green., Ste. Jl S 

New York, NY I 0004 

Ol'lice: 212-607-2803 

Facsimile: 212-607-2822 

reichen@ftc.gov 

JrOR DlWENDANTS 

~~ 'imot!1Y c. rnrlmore, Esq. 

Cutler & Pnrlotm·e. PLLC 

260 Mudison Ave~ue, 22"d Floor 

New York, NY 10016 

Oftlcc: 212-679-6669 

Fucsimile: 212-202-4787 

ti m@c utI emml pari a tore .com 

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