Mundy Funeral Home Licenses Suspended Amid State and TBI Investigations
Quote from 442 on August 14, 2026, 3:46 pmJAMESTOWN, Tenn. — Mundy Funeral Home in Jamestown is facing serious scrutiny after state regulators suspended the funeral home’s license, along with the license of co‑owner Chadrick “Chad” Mundy, following an audit that uncovered alleged fraudulent activity and major documentation issues.
State Audit Findings
On July 22, auditors with the Tennessee Board of Funeral Directors and Embalmers visited the funeral home and reported multiple problems with its files, including:
Missing death certificates
Missing insurance payment documentation
Entire contracts with no supporting paperwork
During the review, investigators contacted Homesteaders Life Company, which provides pre‑need funeral insurance. The insurer reported that Mundy Funeral Home had submitted death claims for at least five people who were still alive, totaling an estimated $70,000 in fraudulent payouts.
The board also stated that Mundy allegedly received around $17,000 connected to individuals in a public guardianship program. In total, officials said they are aware of 12 questionable claims.
How the Allegations Came to Light
The alleged scheme surfaced when a customer attempted to transfer a funeral policy and discovered that a death claim had already been filed — even though the person was still living. Investigators believe the funeral home submitted claims early, collected the insurance money, and left customers unaware.
Homesteaders Life Company is now working to contact affected families and help restore their accounts.
Separate TBI Investigation
Alongside the state board’s action, the Tennessee Bureau of Investigation is conducting a separate investigation involving the funeral home and the cremated remains of Janie Stockton, who passed away on December 31.
Her family reported several issues:
A refund check from the funeral home allegedly bounced
They received an urn and keepsake pendants they believed contained her ashes
The crematory later informed the family that Stockton’s remains had not been picked up for more than 51 days
The TBI confirmed it is investigating allegations involving Mundy Funeral Home at the request of the 8th Judicial District Attorney General.
What Happens Next
The funeral home’s license suspension remains in effect while both investigations continue. State officials emphasized concern for families who prepaid for funeral arrangements and may now face complications with their policies.
Direct Link to the WBIR Article
JAMESTOWN, Tenn. — Mundy Funeral Home in Jamestown is facing serious scrutiny after state regulators suspended the funeral home’s license, along with the license of co‑owner Chadrick “Chad” Mundy, following an audit that uncovered alleged fraudulent activity and major documentation issues.
State Audit Findings
On July 22, auditors with the Tennessee Board of Funeral Directors and Embalmers visited the funeral home and reported multiple problems with its files, including:
-
Missing death certificates
-
Missing insurance payment documentation
-
Entire contracts with no supporting paperwork
During the review, investigators contacted Homesteaders Life Company, which provides pre‑need funeral insurance. The insurer reported that Mundy Funeral Home had submitted death claims for at least five people who were still alive, totaling an estimated $70,000 in fraudulent payouts.
The board also stated that Mundy allegedly received around $17,000 connected to individuals in a public guardianship program. In total, officials said they are aware of 12 questionable claims.
How the Allegations Came to Light
The alleged scheme surfaced when a customer attempted to transfer a funeral policy and discovered that a death claim had already been filed — even though the person was still living. Investigators believe the funeral home submitted claims early, collected the insurance money, and left customers unaware.
Homesteaders Life Company is now working to contact affected families and help restore their accounts.
Separate TBI Investigation
Alongside the state board’s action, the Tennessee Bureau of Investigation is conducting a separate investigation involving the funeral home and the cremated remains of Janie Stockton, who passed away on December 31.
Her family reported several issues:
-
A refund check from the funeral home allegedly bounced
-
They received an urn and keepsake pendants they believed contained her ashes
-
The crematory later informed the family that Stockton’s remains had not been picked up for more than 51 days
The TBI confirmed it is investigating allegations involving Mundy Funeral Home at the request of the 8th Judicial District Attorney General.
What Happens Next
The funeral home’s license suspension remains in effect while both investigations continue. State officials emphasized concern for families who prepaid for funeral arrangements and may now face complications with their policies.
Direct Link to the WBIR Article
Quote from 442 on August 21, 2026, 3:35 pmState Suspends Mundy Funeral Home License Amid Fraud Allegations, TBI Investigation Continues.JAMESTOWN, Tenn. — State regulators have suspended the licenses of Mundy Funeral Home and co-owner Chad Mundy following an investigation that uncovered alleged fraudulent insurance claims and significant recordkeeping deficiencies.
The Tennessee Board of Funeral Directors and Embalmers voted to summarily suspend both the funeral home’s license and Mundy’s funeral director license after auditors reviewed records at the Jamestown business. According to information presented to the board, auditors found multiple files missing required documentation, including death certificates, insurance payment records, and supporting paperwork for funeral contracts. [wbir.com], [wate.com]
The investigation expanded after auditors obtained records from Homesteaders Life Company, a provider of pre-need funeral insurance policies. Board officials said evidence showed death claims had been filed for several individuals who were still living. Investigators told the board they believe approximately a dozen questionable claims may have been involved. [wbir.com], [wate.com]
According to reports presented during the board meeting, the alleged fraudulent claims involved more than $80,000, including roughly $70,000 identified through Homesteaders and additional funds connected to individuals participating in a public guardianship program. [yahoo.com], [wate.com]
Board officials said the suspension was necessary to protect the public while the matter is investigated. The action prohibits Chad Mundy from working as a funeral director and prevents Mundy Funeral Home from operating while disciplinary proceedings continue. [wate.com]
The licensing action comes as the Tennessee Bureau of Investigation continues a separate investigation involving Mundy Funeral Home and allegations surrounding the cremated remains of Jamestown resident Janie Stockton. Her family previously reported receiving a refund check that allegedly bounced and later learned from a crematory that Stockton’s remains had not been retrieved for an extended period following her death. The TBI has confirmed it is investigating allegations involving the funeral home at the request of the 8th Judicial District Attorney General. [wbir.com], [wbir.com]
As of this publication, no criminal charges have been publicly announced in connection with either investigation. Both the state board’s disciplinary case and the TBI investigation remain ongoing. [wbir.com], [wbir.com]
This is a developing story. Updates will be posted as more information becomes available.
JAMESTOWN, Tenn. — State regulators have suspended the licenses of Mundy Funeral Home and co-owner Chad Mundy following an investigation that uncovered alleged fraudulent insurance claims and significant recordkeeping deficiencies.
The Tennessee Board of Funeral Directors and Embalmers voted to summarily suspend both the funeral home’s license and Mundy’s funeral director license after auditors reviewed records at the Jamestown business. According to information presented to the board, auditors found multiple files missing required documentation, including death certificates, insurance payment records, and supporting paperwork for funeral contracts. [wbir.com], [wate.com]
The investigation expanded after auditors obtained records from Homesteaders Life Company, a provider of pre-need funeral insurance policies. Board officials said evidence showed death claims had been filed for several individuals who were still living. Investigators told the board they believe approximately a dozen questionable claims may have been involved. [wbir.com], [wate.com]
According to reports presented during the board meeting, the alleged fraudulent claims involved more than $80,000, including roughly $70,000 identified through Homesteaders and additional funds connected to individuals participating in a public guardianship program. [yahoo.com], [wate.com]
Board officials said the suspension was necessary to protect the public while the matter is investigated. The action prohibits Chad Mundy from working as a funeral director and prevents Mundy Funeral Home from operating while disciplinary proceedings continue. [wate.com]
The licensing action comes as the Tennessee Bureau of Investigation continues a separate investigation involving Mundy Funeral Home and allegations surrounding the cremated remains of Jamestown resident Janie Stockton. Her family previously reported receiving a refund check that allegedly bounced and later learned from a crematory that Stockton’s remains had not been retrieved for an extended period following her death. The TBI has confirmed it is investigating allegations involving the funeral home at the request of the 8th Judicial District Attorney General. [wbir.com], [wbir.com]
As of this publication, no criminal charges have been publicly announced in connection with either investigation. Both the state board’s disciplinary case and the TBI investigation remain ongoing. [wbir.com], [wbir.com]
This is a developing story. Updates will be posted as more information becomes available.