Funeral home owner accused of letting bodies rot in warehouse withdraws guilty plea

DENVER (CN) — A Colorado woman facing federal wire fraud charges for business at a funeral home that improperly warehoused bodies withdrew her guilty plea on Tuesday after a federal judge rejected an agreement that promised to cap her sentence at 15 years.

“I am rejecting the fact that the plea agreement binds the court to a specific sentence,” said U.S. Judge Nina Wang. “The plea agreement is not in the public interest.”

The Fremont County Sheriff’s Office investigated a foul odor in October 2023 and discovered nearly 200 decomposing bodies warehoused by Return to Nature Funeral Home in Penrose, Colorado, a town of 3,000 people approximately two hours south of Denver. The business also operated in Colorado Springs.

The owners, Jon and Carie Hallford, were first arrested in November 2023 on state charges for the abuse of a corpse, theft, money laundering, and forgery. Additional federal charges were filed in April 2024 related to false statements on an application for federal Covid-19 aid.

From September 2019 through October 2023, the couple defrauded hundreds of people who sought funeral services, prosecutors said in a 15-page grand jury indictment filed in the U.S. Court for the District of Colorado on April 10, 2024.

Charging between $900 and $1,400 for cremations and even more for burials, investigators say the Hallfords collected $130,000 over four years. Instead of burying or cremating bodies as contracted, they say 190 deceased individuals were left to rot in a warehouse.

Federal prosecutors say Carie Hallford ran the front of the business, interacting with customers and keeping the books, while Jon was responsible for transporting and preparing bodies for cremation or cemetery burial.

Federal prosecutors say the couple also provided death certificates to families, falsely stating that deceased people had been buried or cremated as contracted. Families who expected to be provided with their loved ones’ remains were reportedly instead given urns “filled with dry concrete mix.”

On an application for Covid-19 relief funds, authorities say the Hallfords falsely represented their business wasn’t in violation of any law.

With $882,300 obtained from the Small Business Administration, the couple purchased “a vehicle, multiple vacations, entertainment, dining, tuition for a minor child, cryptocurrency, cosmetic medical procedures, jewelry, various goods and merchandise from Amazon, and payments to other vendors unrelated to their business," prosecutors said in a grand jury indictment.

In October 2024, each Hallford pleaded guilty to a single charge of conspiracy to commit wire fraud, after which the federal government filed to dismiss a dozen other related charges, including wire fraud and aiding and abetting. Under the agreement, prosecutors asked the court to impose a sentence between seven and 15 years of incarceration.

Although Wang said she hadn’t yet considered what sentence would be appropriate, she said she would not accept an agreement that committed her to a specific range. Instead, Wang ordered Jon and Carie Hallford to each appear in court separately, providing an opportunity for them to withdraw their guilty pleas.

Since she withdrew her guilty plea, Carie Hallford will defend herself before a jury against 15 charges of conspiring to commit wire fraud as well as aiding and abetting.

Even without the guarantee of a sentence under 15 years, Jon Hallford affirmed his decision to plead guilty and is scheduled to be sentenced on March 20.

Federal Public Defender Laura Suelau represented Jon Hallford, while Arvada-based attorney Robert Melihercik represented Carie Hallford.

U.S. Attorney Tim Neff represented the federal government in court against both defendants.

In November 2024, each Hallford pleaded guilty to state charges for which they are scheduled to be sentenced on April 18.

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