Jon M. Hallford, a Colorado Springs funeral home operator, has been sentenced to 20 years in federal prison for his involvement in a wire fraud conspiracy. Hallford was also ordered to pay over $1 million in restitution. The charges stem from mishandling at least 190 bodies and defrauding the Small Business Administration (SBA) through fraudulent COVID-19 loan applications.
Hallford, along with his wife Carie, owned Return to Nature Funeral Home in Colorado Springs and Penrose. According to the plea agreement, from September 2019 through October 2023, Hallford failed to cremate or bury bodies as promised, despite receiving more than $130,000 from families for these services.
Instead of performing the agreed-upon services, Hallford allowed bodies to accumulate in various states of decay inside the funeral home’s facility. He took measures to conceal his activities by blocking windows and doors and offering false explanations for foul odors emanating from the site.
The plea agreement also revealed that Hallford filed false death certificates with the State of Colorado listing cremation or burial as methods of disposition. In some cases, he misrepresented decedents' identities to third-party crematories or failed to cremate or bury remains altogether.
In particularly egregious instances, Hallford provided family members with urns filled with dry concrete mix instead of their loved ones' ashes and delivered incorrect bodies for burial on at least two occasions.
From March 2020 to March 2022, Jon and Carie Hallford conspired to defraud the SBA by submitting false information on loan applications to obtain COVID-19 relief funds. They received three disbursements totaling $882,300 through the Economic Injury Disaster Loan program meant for businesses affected by the pandemic.
United States Attorney Peter McNeilly stated: “Jon Hallford’s criminal fraud was a vehicle to exploit grieving families so he could give himself a lavish life with luxury cars and expensive vacations.” He expressed condolences to affected families hoping this case brings them peace.
FBI Denver Special Agent in Charge Mark Michalek commented: “Families in the depths of grief trusted this defendant... He schemed and defrauded them and the government.” Colorado Bureau of Investigation Interim Director Rebecca Spiess described Hallford's crimes as "truly disturbing," emphasizing collaboration among agencies involved in uncovering conditions at the funeral home.
Jonathan Huang from SBA Office of Inspector General condemned exploiting SBA programs during crisis times as disgraceful while commending efforts leading up today's sentencing.
The case investigation involved multiple agencies including FBI Denver Field Office; U.S Small Business Administration Office Inspector General; Colorado Bureau Investigation; local police departments among others handled prosecution led Assistant U.S Attorneys Tim Neff Craig Fansler under United States District Judge Nina Y Wang oversight Case Number: 1:24-cr-00113-NYW
