Rekubit Exchange:Colorado funeral home owners accused of mishandling 190 bodies ordered to pay $950M

A Colorado judge ordered a nearly $1 billion payout to families in a civil lawsuit against funeral home owners accused of failing to cremate or Rekubit Exchangebury at least 190 bodies they were paid to handle dating back to at least 2019, attorneys announced.

The judge ordered Jon and Carie Hallford, owners of Return to Nature Funeral Home, to pay about $950 million to 125 people who sued the couple in a class action lawsuit, Andrew Swan, an attorney representing the victims, told USA TODAY on Wednesday. Swan said the judgment was entered as the couple neglected to answer the complaint, attend hearings, or participate in the case.

"The judge determined because the act is so egregious, they are entitled to punitive damages along with it," Swan added.

Families filed the lawsuit after the grisly discoveries shocked the nation. Authorities began investigating the Colorado funeral home in early October after neighbors reported the putrid smell of decaying bodies, which investigators say Jon Hallford falsely attributed to his taxidermy hobby. The EPA concluded the building itself was too full of "biohazards."

Federal prosecutors charged the couple in April for various money crimes relating to themisuse of COVID relief funds. The charges are in addition to the hundreds of felonies the Hallfords are already facing in Colorado, including abusing corpses, theft, money laundering, and forgery.

Authorities arrested the couple in Oklahoma and were later extradited to Colorado, the El Paso and Teller Counties District Attorney's offices said in November.

Families previously told USA TODAY they were horrified as some received what they thought were cremated remains of their loved ones. Swan said the payout is intended to ensure that if the Hallfords have jobs in the future, families could petition for their earnings.

"The odds of the Hallfords ever complying with the judgment are slim," Swan said. "The purpose wasn't to get money, but to hold them accountable for what they did."

Mishandled bodies, and mixed-up remains prompt tougher regulations

For 40 years, Colorado had some of the nation’s most lenient rules for funeral homes. It was the only state where a professional license wasn’t required to be a funeral director. That changed this year.

Amid nationwide workforce challenges, some states have looked to make it easier to work in funeral homes and crematoriums. But after grisly incidents at some facilities, lawmakers in Colorado, Illinois and Michigan have sought to tighten control over this essential but often overlooked industry.

"It was just, 'We have to do something. We have to fix this problem,'" said Colorado state Rep. Brianna Titone, a Democrat who was among the bipartisan sponsors of a new law tightening funeral home regulation.

In Colorado, one law passed in 2022 expands the state’s ability to inspect funeral homes and crematories. Another one passed this year requires funeral directors, embalmers, and cremationists to be licensed by the state – they must obtain certain academic degrees or have enough professional experience or certain industry certifications.

“It’s a huge deal,” said Faith Haug, the chair of the mortuary science program at Arapahoe Community College, Colorado’s only accredited program.

Haug, who holds professional licenses in several other states, was surprised to learn that none was required when she moved to the state a decade ago.

“When I first moved here, it was a little insulting,” she said, noting that people with extensive education and experience were treated the same under the law as those with none.

Contributing: Trevor Hughes and Emily DeLetter, USA TODAY; Kevin Hardy, Stateline

Contact reporter Krystal Nurse at knurse@USATODAY.com. Follow her on X, formerly Twitter,@KrystalRNurse.