Local News

Owner of Smith Manor Funeral Home Arrested on 25 Counts of Fraud

MADERA - Thursday afternoon, Madera County Sheriff’s Detectives arrested Sharlane Smith at her Clovis home on numerous counts of fraud. Smith is the co-owner of Smith Manor Funeral home in Madera with her ex-husband George Smith. Her arrest follows several weeks of investigation into allegations that Smith Manor was intentionally over-charging the County of Madera for Coroner’s Services.

Smith Manor has held the County’s coroner services contract since 2004 and has been responsible for transportation, storage, autopsy facilities, and dispositions of deceased persons in Madera County. Evidence uncovered by Detectives indicates that Smith was intentionally adding charges to the monthly billing to the County for services that were not actually provided.

A Search Warrant was served on the business on Thursday, March 31, 2015, and several employees were interviewed but no one was immediately taken into custody. Numerous business records were seized during the service of the Search Warrant and will continue to be examined as the investigation continues. At this point in the investigation, it appears that the County was intentionally billed for services not provided over a period of many years.

Madera County Sheriff Jay Varney said Smith's bail was set at $125,000 and she bailed out of jail a few hours after her arrest. He doesn't think there will be any other criminal charges against anyone on her staff or against her partner, her ex-husband, George Smith.

Over the last four years, Varney estimated the county has lost $110,000 as a result of Smith’s alleged actions. Varney said the total could be much more when detectives investigate further. He believes this practice of Smith's may go back as far as 2007 but because of the statute of limitations, detectives are focusing on the last four years.

Smith Manor will no longer be handling Coroner’s services for Madera County; these duties have been reassigned to Merced County for the short term and possibly another Madera funeral home in the long term. Varney identified Jay Chapel as a possible replacement. Services to the citizens of Madera County should not be affected during the course of this investigation.

Smith has been booked into the Madera County Department of Corrections and is being charged with 25 counts of violating California Penal Code Section 72 (intent to defraud any state board, county or city).

intent to defraud, presents for allowance or for payment to any state board or officer, or to any county, city - See more at: http://codes.lp.findlaw.com/cacode/PEN/3/1/5/s72#sthash.kEMHppEU.dpuf

Sheriff Varney stated, “This case is particularly troubling due to the blatant theft and violation of trust by the vendor, as well as how long they were able to continue this deception despite monthly review of the billings by staff members. We will be reviewing this process and implementing safeguards to prevent future abuse of this kind."

During the 2014 general election and primary election for Madera County Sheriff, Sharlane Smith was a contributor to Varney's opponent Madera County Under-Sheriff Michael Salvador.