A former Jackson funeral director, who lost his operating license last year amid accusations he mishandled human remains at his crematory, now faces criminal charges of misusing pre-need funeral funds.

In a case similar to one involving Green Acres Memorial Park in Vicksburg, Mark Seepe was arrested in his Brandon home Monday night after being charged with conversion in a five-count indictment by a Hinds County grand jury and a two-count indictment by a Rankin County grand jury.

Conversion is a form of theft requiring prosecutors to prove a person willingly gave money or goods to someone else who had made a promise to use the money or goods for one purpose, but “converted” the money or goods to other uses.

Attorney General Jim Hood said in a written statement that Seepe allegedly took payments for pre-need funerals and “knowingly and willfully misapplied or converted the pre-need funds to his own personal use.”

The crematory investigation led to removal of Seepe’s personal and establishment operating licenses in an administrative action by the state Board of Funeral Service, but no criminal case was initiated. Seepe does face pending civil litigation initiated by clients.

Secretary of State Delbert Hosemann accused Seepe of violating the state’s Pre-Need Cemetery and Funeral Registration Act by failing to properly account for payments made by purchasers and by failing to properly reserve a portion of the collected payments in trust.

In the case here, Hosemann brought suit against Green Acres on Jan. 22 after an investigation revealed at least $373,000 missing from the pre-need trust fund into which clients had pre-paid for burial services, vaults and markers.

Warren County Chancellor Vicki Roach Barnes issued a temporary restraining order freezing the bank accounts of owner Mike Graham and Associates of Houston, then extended the order for 10 days so the company’s holdings in five other states could be included in the investigation. Nearly $3 million in prepaid funds is reportedly missing in its Alabama holdings alone.

While the owners have not sent legal representation to previous court hearings, the case will be taken up in court again Thursday.

At about the same time as the action against Green Acres, Hosemann also targeted seven other funeral industry firms in the state.

Hosemann’s legal moves ask the court to require the cemetery owners to restore the missing funds. No criminal charges have been filed.

The Associated Press contributed to this story.

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Contact Pamela Hitchins at phitchins@vicksburgpost.com.