Penrose funeral home owners plead not guilty in federal fraud case, wife to be released from custody

DENVER, Colo (KRDO) - On Thursday in federal court, Jon and Carie Hallford, the owners of the Return to Nature Funeral Home, pleaded not guilty to 15 counts of federal fraud-related charges. A federal judge also ordered that Carie be let out of federal custody, while Jon will remain in federal custody.

In a lengthy court session lasting nearly two hours, the U.S. government argued that Jon and Carie should continue to be detained in federal custody for the remainder of the federal court process.

Both Hallfords were brought into court with shackles on their wrists and ankles, with Carie wearing a Jefferson County Sheriff's Office jumpsuit.

The Prosecution:

Amongst the long list of arguments brought forth by prosecutors, the most notable was the mention of a new case against Jon Hallford, which was confirmed to the government by the Colorado Springs Police Department (CSPD), and alleges sexual offenses between Jon and a minor who is in his family.

CSPD told the government that they have an active and ongoing investigation into the allegations, which include disturbing text messages as evidence, that were read in court Thursday, showing Jon allegedly calling the minor "baby", asking to cuddle in bed together, and asking that the minor keep their relationship a secret.

In addition to the arguments about the Hallford's history and character, the prosecution noted that Jon still has an outstanding debt owed on childcare support for his lone son, in a contested divorce case, where he owes upwards of $22,600.

They added that over the course of several years, Jon missed multiple court orders, and even had a warrant issued for his appearance.

The prosecution also mentioned a detail about the Hallfords' attorney who was representing them during the Fall of 2023, who told law enforcement that the couple was willing to meet with officers, and if needed, would have self-surrendered in light of pending charges.

Prosecutors went on to say that according to a Colorado Bureau of Investigations report on October 10, 2023, that same attorney canceled the meeting to speak with law enforcement for an unknown reason, but still maintained they were going to turn themselves in. 

In addition to that, the prosecutors added that Jon ignored a request by the Department of Regulatory Agencies (DORA) to meet with him at the Penrose location, due to complaints that were made about odors and practices going on there.

It's shortly after these potential meetings that the Government asserts the Hallfords were on the run.

Throughout the prosecution's arguments, Jon could be seen continuously shaking his head, keeping his eyes forward, or down at the ground. Carie mainly kept her eyes across the room toward the Judge.

Jon and Carie's Defense Council:

The defense, although separate councils for both Jon and Carie, often spoke using arguments that were claimed by both parties. In regards to the Hallfords traveling to and being arrested in Oklahoma, they claimed that the couple was visiting a "generational home", owned by Jon's father who is diagnosed with Alzheimers disease, and that it was a place that they visited several times a year.

They also asserted that both Jon and Carie's pre-trial assessment rated their flight risks at a "1", meaning they are 95% likely to comply with court orders and appearances. The defense also argued that for Jon and Carie's sake they had no obligation to meet with DORA because they were not a law enforcement agency, nor were they made aware of the charges that were being issued against them.

The defense affirmed that what their attorney at the time said was true and that they would have self-surrendered, and despite the meeting being canceled by their attorney for unknown reasons, they claim that law enforcement still knew of ways to contact Jon and Carie, but instead, they filed the charges in state court and said they were fleeing from prosecution, which lead to their arrest.

The defense council for both Jon and Carie made it clear that since bonding out earlier this year, the two have been compliant with all orders from the court while out of custody, and do not have the money or means to flee from Colorado Springs.

The council for Jon specifically stated that given his new involvement in the case being handled by CSPD over sexual conduct with a minor, he has more of a reason to stay in the area.

Defense for Carie argued that she should be considered differently from Jon in terms of detention, due to the evidence about their history and character, her lack of involvement with the heinous crimes at the Penrose location, and no previous criminal history.

The Decision:

The judge ultimately decided that Carie would be allowed out of federal custody and would be ordered to live in a halfway house with GPS ankle monitoring. The monitoring would serve on behalf of the FBI and the state, which has already been in place for Carie since she bonded out of the El Paso County jail.

Conversely, the judge ruled that Jon was too much of a flight risk and a danger to those around him and thus he must remain in federal custody through the rest of the federal court proceedings.

Carie will appear again before the same judge on Tuesday, April 23, to be assigned to a halfway house and receive a new ankle monitor.