Roy Vance Prestwood Jr., 42, is charged with organized fraud and insurance fraud.
Investigators said Prestwood used his job as a funeral director to cash in on nine policies worth more than $100,000.
"He's wrong to do something like that," said Mia Anderson of Baldwin. "He should give people the money back, because that's not right."
According to his arrest warrant, Prestwood would take the money from what's called a pre-need funeral arrangement contract.
People make them to freeze the price of a funeral service because such prices fluctuate.
Investigators said Prestwood had a scheme to collect on people who were still alive from 2006 to 2013.
Investigators said bank statements revealed the funds went to vacations, recreational activities, vehicles and dining.
The Prestwood Funeral Home in Baldwin is now under new ownership and not under investigation.
In a statement, funeral home officials said, "We are deeply saddened by Mr. Prestwood's actions and will make every effort to assist all victims in this case."
Reached by telephone, Prestwood directed questions to his attorney, Tim Pribisco. In a statement, Pribisco said, “I’m looking forward to defending my client against these accusations and we are awaiting the opportunity to see the state’s evidence and contest it in court.”
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