Carie Hallford, 49, of Colorado Springs was sentenced on Mar. 16 to 18 years in federal prison, three years of supervised release, and ordered to pay over $1 million in restitution after pleading guilty to conspiracy to commit wire fraud. The sentencing follows her role in a scheme involving the mishandling of at least 190 bodies and defrauding the Small Business Administration through fraudulent COVID-19 loan applications.
The case highlights significant violations affecting grieving families and the misuse of pandemic relief funds intended for struggling businesses. Hallford operated Return to Nature Funeral Home in Colorado Springs and Penrose with her then husband, Jon Hallford, who was previously sentenced to 20 years in prison for his involvement.
According to court documents, from September 2019 through October 2023, Carie and Jon Hallford failed to cremate or bury at least 190 bodies despite collecting more than $130,000 from families for services that were never provided. They falsely reported cremations or burials on death certificates while leaving remains decomposing at their Penrose location. From March 2020 to March 2022, they also conspired to submit false information on loan applications and received $882,300 through the Economic Injury Disaster Loan program.
Federal and state officials discovered multiple decomposing human remains during an October 2023 search of the Penrose facility. The hazardous conditions led the Environmental Protection Agency (EPA) to condemn and demolish the building as a toxic waste site.
United States Attorney for the District of Colorado Peter McNeilly said, “It takes an exceptionally sick person to even think of a fraud scheme like Jon and Carie Hallford’s, let alone carry it out. Their disregard for fundamental human dignity is almost beyond belief... This case doesn’t right the wrongs the victims have suffered, but it does stand as an unequivocal condemnation of the Hallfords’ horrific criminal conduct.” FBI Denver Special Agent in Charge Amanda Koldjeski added: "The defendant defrauded grieving families she agreed to serve while deceiving the federal government in order to obtain benefits meant to assist businesses during the pandemic... She lied and exploited families and systems to enrich her lifestyle with absolutely zero regard for the great harm she caused to so many."
The U.S. Attorney’s Office leads one of five national COVID-19 Fraud Strike Force Teams focused on combating pandemic-related financial fraud. United States District Judge Nina Y. Wang presided over Hallford's sentencing hearing.
