Prosecutors say more than $500,000 meant for funeral trusts was taken.
WINCHESTER, IN — A former Indiana funeral home director has been arrested and charged with dozens of theft counts after investigators said money paid by families for prepaid funeral plans was not placed in required trust accounts and instead was taken for his use.
The case centers on Wilson Shook Funeral Homes, a group of funeral chapels that served Randolph County communities and nearby areas. Prosecutors say the alleged losses add up to more than $500,000 across 64 victims, with individual amounts ranging from hundreds of dollars to tens of thousands. The charges were filed after months of complaints from families who said they could not find accounts tied to their prepaid plans, and after a grand jury in Randolph County returned indictments that were kept sealed for a time.
Zalo J. Wilson Jr., 61, of Lynn, Indiana, was indicted on 64 counts of theft after a Randolph County grand jury heard evidence on Feb. 11 and returned charges that were later made public, authorities said. Wilson was arrested Feb. 27 in Maine after Indiana investigators coordinated with law enforcement there to serve an arrest warrant, according to statements from local officials familiar with the investigation.
Investigators said families paid Wilson Shook Funeral Homes in advance to lock in funeral arrangements. Under Indiana law and industry practice, that kind of prepaid money is typically placed into a funeral plan trust account so it remains available when services are needed. In many cases, families expected those funds to be held through a trust administrator such as MasterChoice, investigators said. Complaints began building late last year when people contacted the trust company to confirm their balances and were told no account existed in their name, according to law enforcement statements and interviews reported by Indiana broadcasters.
Prosecutors allege Wilson provided some customers with paperwork that appeared to show prepaid plans were set up, while the money was never deposited into the required trust accounts. Randolph County Prosecutor David Day said the alleged theft amounts ranged from $750 to $50,000 per count, and he put the combined alleged losses at more than $500,000. Each theft count is charged as a Level 6 felony under Indiana law, the lowest felony level in the state, but the number of counts exposes Wilson to significant potential prison time if he is convicted and a judge orders sentences to run consecutively.
The investigation was supported by multiple agencies, including the Randolph County Sheriff’s Department and police departments in Lynn, Farmland and Union City, officials said. Earlier public statements during the inquiry described detectives gathering contracts, receipts and other records from families who said they had saved for years to cover funeral expenses. In November 2025, as the inquiry was beginning, Randolph County investigators said they were trying to determine the scope of the problem and expected the reported dollar amount to rise as more people came forward.
At the time, Randolph County Detective Monte Gaddis described the complaints as centered on money meant to ease the burden at a difficult moment. “This is money that they’ve put in to take care of funeral arrangements,” Gaddis said in a broadcast interview, adding that families were shocked to learn the funds they believed were protected “now is gone.” Investigators said some complainants reported paying substantial sums, sometimes in multiple installments, believing the payments were secured for future services.
Wilson Shook Funeral Homes operated several chapels, including locations identified in public reports as Thornburg Memorial Chapel, Thomas Memorial Chapel and Fraze and Brooks Memorial Chapel in Randolph County, plus Dunkirk Memorial Chapel in neighboring Jay County. The business served small towns where funeral homes often have long ties to families across generations. When questions about prepaid plan money surfaced and the funeral homes closed, families began calling outside entities and local officials to verify whether their contracts were backed by trust accounts, authorities said.
Beyond the theft allegations, Wilson has been the subject of earlier scrutiny tied to his work in the death care industry. A Wayne County coroner official said his office filed a complaint in December 2024 with the Indiana attorney general’s office related to Wilson’s conduct in a separate case. Wayne County Chief Deputy Coroner Dillon Pitcher said the complaint involved statements made to a family about a cause of death that conflicted with findings reached through a coordinated medicolegal investigation.
Pitcher said a death was determined to be a suicide by gunfire after law enforcement and medical experts reviewed the case. Pitcher said Wilson, who Pitcher noted was not a forensic pathologist, told the family the death was a homicide. In an email described in a published report, Pitcher said the claim contradicted trained professionals and caused “unnecessary confusion and emotional distress” for the family during a painful time. Pitcher suggested that if additional allegations had been known then, Wilson could have faced a harsher sanction connected to that earlier complaint.
Authorities have not publicly detailed how the alleged prepaid plan money was spent, and investigators have not released a full accounting of where the funds went. It also remains unclear how many families may ultimately be affected beyond the 64 named in the current indictments. Officials have described the case as ongoing, indicating detectives may continue reviewing additional complaints and financial records. Law enforcement agencies in and around Randolph County urged anyone with questions about prepaid contracts to contact their local police department to report concerns and provide documentation.
Even as the criminal case moves forward, funeral industry officials in Indiana have said families who prepaid for services should not be left without help when a death occurs. An official with the Indiana Funeral Directors Association said victims in the Randolph County case will receive the funeral related services they paid for, according to a local radio report. How that assistance will be arranged can vary, including transfers of contracts to other funeral homes or coverage through other mechanisms, but officials stressed that services would still be provided as the investigation proceeds.
Wilson’s arrest in Maine raises procedural steps that often follow out of state apprehensions. After an arrest warrant is served, a defendant typically appears before a local court in the arresting state for an initial hearing, then faces extradition back to the state that filed the charges unless the person waives that process. Indiana officials have said only that Wilson was located in Maine and taken into custody there on Feb. 27. Court records and scheduling details in Maine and Indiana were not included in the public statements summarized by local outlets, and officials have not announced a date for Wilson’s first appearance in Randolph County.
The charges come at a time of heightened attention on prepaid funeral plans nationwide, as regulators and consumer advocates often warn that such contracts depend on strict handling of funds and clear recordkeeping. In Indiana, as in many states, funeral homes that sell prepaid plans generally must place payments into a trust or purchase insurance backed products intended to cover future services. Investigators in the Randolph County case have repeatedly pointed to the alleged absence of required trust accounts as the central problem reported by families.
For residents of Lynn, Parker City and nearby towns, the allegations have carried an added sting because prepaid plans are often purchased specifically to spare relatives from sudden costs and difficult decisions. Families interviewed by Indiana broadcasters described learning of the missing funds only after the business closed and they began making calls to verify paperwork they had kept for years. Investigators said many complainants believed they were acting responsibly by paying ahead and saving receipts, only to discover the arrangements they thought were secure were not backed by money set aside for their future needs.
Prosecutors have not released the names of the alleged victims, citing the sensitive nature of prepaid funeral planning and the fact that some contracts involve arrangements for people still living. Officials have also not said whether they expect additional charges, such as fraud counts, though investigators have described alleged false paperwork as part of the pattern they are examining. Any additional filings would likely depend on the results of ongoing financial reviews and whether new complainants provide contracts and payment documentation that can be verified.
Wilson remained the focus of inquiries in Randolph County after the grand jury returned indictments in February and the case became public in early March. Investigators have asked families who purchased prepaid plans through Wilson Shook Funeral Homes to gather contracts, receipts and any correspondence connected to their arrangements. Law enforcement officials have emphasized that reports help establish timelines and may help determine whether more counts are warranted or whether restitution could be sought as part of future court orders.
As of Thursday, the case remained in its early court stage with Wilson in custody following his arrest in Maine and expected to face extradition proceedings before being returned to Indiana. The next milestone is an initial court hearing in Randolph County after his transfer, where a judge would typically advise him of the charges and set conditions of release, including bond, while prosecutors outline how they plan to proceed.
Author note: Last updated March 5, 2026.