The owners of a Colorado funeral home, accused of failing to properly cremate or bury nearly 200 bodies and misusing substantial amounts of COVID relief funds, entered guilty pleas on Thursday to federal fraud charges, according to the U.S. Attorney’s Office.

Jon Hallford and Carie Hallford, previous owners of Return to Nature Funeral Home, each admitted guilt to a conspiracy charge related to wire fraud. Their plea agreements reveal that they also confessed to a scheme that defrauded the U.S. Small Business Administration of over $880,000 in pandemic assistance funds.

Both Hallfords could face up to 20 years in federal prison as a consequence of the fraud charges, the U.S. Attorney’s Office indicated. Originally, they faced multiple counts of wire fraud and conspiracy, which will be dismissed as part of their plea deals.

These fraud allegations come on top of over 300 state felony charges like corpse abuse, theft, money laundering, and forgery against the Hallfords. Additionally, they are facing legal actions from families who employed the services of Return to Nature, which operated in Penrose and Colorado Springs.

Authorities launched an investigation into the Hallfords in October 2023, prompted by reports from residents and businesses about a terrible smell near the funeral home. After obtaining a search warrant, the FBI and local law enforcement uncovered human remains that were not stored appropriately within the facility.

Upon further investigation, it was revealed that around 190 bodies, in varying stages of decomposition, were being kept in the funeral home, according to officials.

“Some remains were dated back to 2019,” stated the U.S. Attorney’s Office in a news release. “In their fraudulent activities, the Hallfords deceived funeral home clients into believing their loved ones’ remains would be treated according to their wishes and contract agreements.”

Colorado funeral home operators charged with defrauding mourning families

The family-run funeral home claimed to provide environmentally friendly burials without the use of embalming agents or metal coffins. Prosecutors asserted that the Hallfords deceived families nationwide by failing to carry out the cremation or burial services they promised.

Charges indicate that the Hallfords allegedly provided families with dry concrete instead of actual ashes, collected over $130,000 from families for services ultimately not rendered, and misplaced bodies during burials on at least two occasions.

When officials uncovered the bodies, investigators noted that Jon Hallford falsely claimed the unpleasant smell originated from his taxidermy hobby. The Environmental Protection Agency later determined the facility was overly contaminated with “biohazards” and initiated its demolition earlier this year.

The couple was arrested in November 2023 after attempting to evade prosecution by fleeing to Oklahoma. At that time, affidavits stated that the Hallfords were facing 249 charges in relation to the investigation.

In April, they were accused of wrongfully obtaining pandemic funding for their business, as outlined by the U.S. Attorney’s Office. Prosecutors mentioned that the couple acquired $882,300 by misrepresenting Jon Hallford’s delinquent child support status and claiming their business was not involved in criminal acts at the time of applying for COVID-19 financial assistance.

The pair was also accused of misusing the funds for personal expenses rather than for their business, as stated by the U.S. Attorney’s Office.

Judgment ruling against funeral home owners for $950 million

A Colorado judge ruled in August that the Hallfords owe roughly $950 million to 125 plaintiffs in a class action lawsuit, according to prior reports by YSL News.

Families expressed shock and horror upon learning that their loved ones had decomposed at the funeral home. Andrew Swan, a lawyer representing the victims in the lawsuit, indicated that the financial judgment was meant to ensure that if the Hallfords find future employment, families would be able to seek compensation from their earnings.

“It’s unlikely that the Hallfords will adhere to the court order,” Swan noted. “This payout isn’t about the money but about holding them responsible for their actions.”