The primary objective of the Office of Cemetery Oversight ("the Office") is to issue
permits and registrations and to monitor individuals, partnerships, corporations and limited liability
companies operating cemeteries or providing burial goods and services to consumers in Maryland. The Office
is responsible for investigating and mediating consumer complaints involving registrants, licensees and
permit holders.
After years of good-faith attempts to bring Badtec, Inc. d/b/a/ Southern Memorial Gardens ("Badtec"),
into compliance with permit requirements, it became necessary to take administrative, civil and criminal
action against the owners and the registrants.
On August 12, 2011, the Circuit Court for Calvert County
issued an Order (PDF document, 63KB,
download
Adobe Acrobat for free) against Badtec. That Order stipulated that the owners and operators of the
cemetery were prohibited from performing or assisting in any new burials. The Court ordered that only
independent contractors would be allowed to assist families who already owned burial lots. The ruling
effectively halted Badtec's operation and upheld the Cease and Desist Orders previously issued to the
business. Prior to the August 12 Order, the cemetery property became subject to foreclosure by the bank,
which holds the mortgage on the property. The recent bankruptcy filing may stay the earlier Court action.
Administrative action was taken by the Office to deny a permit to Badtec and suspend its owners and its
employees. The decision to deny the cemetery a permit to operate was upheld by the Office of Administrative
Hearings.
The Office of Cemetery Oversight sought criminal prosecution against an owner of the cemetery and its
employees for engaging in the operation of the cemetery without the required permit and registrations. The
Calvert County State's Attorney's Office is responsible for the prosecution of these cases.
The Office of Cemetery Oversight took whatever steps possible (within its jurisdiction) to protect the
families affected by the troubled business. The Office attempted to preserve as many consumer contracts,
maps and plats as possible.
The cemetery's Pre-need and Perpetual Care Trust Funds were transferred to the Calvert County Circuit
Court's Registry after a Temporary Restraining Order filed by the Office was granted.
The Office continues to closely monitor the events at the cemetery as they unfold.
The State has been working with the Calvert County Commissioners to recruit groups to take over the
maintenance of the grounds.
On December 7, 2011, Badtec, Inc., d/b/a Southern Memorial Gardens filed for Chapter 7 Bankruptcy in the
United States Bankruptcy Court for the District of Maryland. A Meeting of Creditors of Badtec, Inc., d/b/a
Southern Memorial Gardens was held at 6305 Ivy Lane, Sixth Floor, Greenbelt, Maryland 20770 on Tuesday,
January 10, 2012. Due to time constraints, a second Meeting of Creditors of Badtec, Inc., d/b/a Southern
Memorial Gardens was held on Tuesday, February 7, 2012 at 3:00 p.m. at 6305 Ivy Lane, Sixth Floor,
Greenbelt, Maryland 20770. Any consumers should be on the list of
creditors should contact the Trusteee appointed by the U.S. Bankruptcy Court, Gary A. Rosen, Esq., by mail
at One Church Street, Suite 802, Rockville, Maryland 20850 or by phone at (301) 251-0202.
No further creditor meetings have been scheduled at this time.
The Office sought and obtained an Interim Order from the U.S. Bankruptcy Court for the District of
Maryland to allow independent contractors to continue to perform burials in Southern Memorial Gardens
for pre-need contracts entered into prior to August 12, 2011. A hearing to make the Interim Order
permanent was held on Friday, January 13, 2012 at 10:30 a.m at the U.S.
Bankruptcy Court, Federal Courthouse, 6500 Cherrywood Lane, Suite 300, Courtroom 3-E, Greenbelt,
Maryland 20770. The interim order was made final (PDF document,
64KB, download
Adobe Acrobat for free) on February 1, 2012.
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