Memphis Cemetery Company Based In Oklahoma Files For Bankruptcy Day Before Hearing

Tuesday, January 23rd 2007, 7:37 am

By: News On 6

MEMPHIS, Tenn. (AP) _ An Oklahoma man who owns three funeral homes and three cemeteries in Memphis, Tennessee, has filed for bankruptcy one day before a hearing on whether Tennessee can take over the businesses.

Clayton Smart of Okmulgee is accused with his partner of diverting millions of dollars from cemetery trust funds into other businesses they control. The two face similar allegations in Michigan.

The funeral homes and cemeteries operate under the name Forest Hill and allegedly demanded extra money from customers who had paid in advance for funeral services.

Smart and partner Stephen Smith filed for bankruptcy in Oklahoma. They also filed a motion in federal court in Memphis to stop all proceedings in Tennessee until the bankruptcy proceedings determine how the assets of Forest Hill are affected.