Settlement Reached In Green Hill Cemetery Case
Attorney General Spitzer and Secretary of State Randy A. Daniels today announced the settlement of a lawsuit with the former trustees and officers of Green Hill Cemetery Association, located in Amsterdam, New York.
The matter was referred to the Attorney General's office by the New York State Cemetery Board. The Attorney General's lawsuit was filed in 1999 against Donald Castor and his wife, Katherine. At the time, the Castors were the Cemetery's officers and its only board members.
The Attorney General's complaint alleged that the Castors had breached their fiduciary duties to the Cemetery by improperly withdrawing funds from the Cemetery's trust funds without the required court order. The Complaint further alleged that the Castors used the improperly withdrawn funds to make payments to themselves and their company, Cemetery Services, Inc. The lawsuit sought restitution from the Castors and their removal from the Cemetery's board of trustees.
In the spring of 2000, Green Hill's lot owners undertook a voluntary effort to clean up the 40 acre cemetery. In November 2000, the lot owners elected a new board of trustees, which excluded the Castors.
Under the settlement, the Castors will pay $40,000 in restitution that will be deposited into Green Hill's Permanent Maintenance Fund. The Castors are also prohibited from serving, in the future, as directors or officers of any New York not-for-profit corporation.