A 54-year-old man whose gravestone business has frequently put him at odds with authorities has been indicted by a federal grand jury on charges he defrauded customers out of more than $1.5 million, U.S. Attorney Jacqueline C. Romero announced Tuesday.
Gregory J. Stephen Jr., of Upper Merion, was indicted on seven counts of wire fraud and made his initial appearance before U.S. District Judge Jose R. Arteaga on Tuesday. The grand jury indictment was returned late last month, Romero said.
Prosecutors allege that Stephan, through his companies 1834 LLC and Colonial Memorials, defrauded about 500 customers out of more than $1.5 million after headstones were not delivered, were delayed or had other problems, Romero said.
According to the indictment, Stephan demanded large advance payments from customers – often up to 100% of the purchase price – but regularly failed to fulfill orders by scheduled delivery dates.
In December, Stephen Jr. was indicted on felony theft charges in Delaware in connection with the undelivered headstone.
Stephen Jr. was also arrested and indicted last year in Delaware County on 280 charges related to theft and fraudulent business practices.
The law firm representing Stephen Jr. declined to comment Tuesday.
Gregory Stephen Sr. was sued by the Pennsylvania Attorney General's Office in 2015 as the sole owner of Lifestone by Stephen LLC and Stephen Memorials. The businesses had been the subject of complaints dating back to at least 2010, according to the federal indictment.
The 2015 civil lawsuit ended in a settlement and court order, but former Attorney General Josh Shapiro accused Stephen Sr. of violating the terms of the agreement, resulting in a judgment for more than $300,000 and an injunction barring Stephen Sr. from owning, controlling or having any significant involvement in a business that provides or engraves headstones to consumers.
The Attorney General's Office filed suit again in 2021 as complaints continued.
In January 2023, the Attorney General's Office announced it had reached a settlement with Gregory J. Stephens Sr., Gregory J. Stephens Jr. and Gerald Stephens, the alleged owners of 1843 LLC.
According to the federal indictment, 1843 LLC was formed in 2016, had its registered office in Upper Darby, and was owned 50% each by Stephen Jr., whom prosecutors identified only as “GS,” and his brother.
According to the indictment, Stephen Jr. was in charge of the day-to-day operations of the company from 2016 until approximately March 2021. The company sourced headstones from a third-party supplier in Hillsboro, New Jersey.
According to the indictment, Stephen Jr. sold the gravestones for an average of 400 percent above cost.
In 2021, a Delaware County judge found Stephens' business in contempt of the original consent agreement. Stephens Jr. then “orchestrated the incorporation” of Colonial Memorials, a headstone business in Bridgewater, New Jersey, according to the federal indictment.
Stephen Jr.'s wife was listed as the company's president, but Stephen Jr. ran the business from 2021 until about September 2023, according to the indictment.
According to the indictment, Stephens Sr. has been in the gravestone business since the 1970s and has acquired other family-owned gravestone businesses over the years. The other businesses continued to operate under their old names but were still run by the Stephens family.
