5 funeral homes face foreclosure
Ownership transfer, KBI probe linked to nearly $4 million in loans
Staff writer
A lender is seeking foreclosure and sheriff’s sale of Yazel-Megli’s five-location funeral home network after alleging defaults on loans that originally totaled nearly $4 million.
ReadyCap Lending LLC filed suit Thursday in Marion County District Court against Yazel-Megli Property Holdings LLC, Yazel-Megli Funeral Holdings LLC, Yazel Megli Funeral Home LLC, former majority owner Bradley Yazel, and current sole owners Roger and Sandra Megli.
The suit also names former owner Ty Zeiner, merchant cash advance lender Itria Ventures LLC, the Kansas Department of Revenue, and other parties with recorded interests in the properties.
The petition does not accuse Zeiner or KDOR of causing the alleged defaults. Instead, ReadyCap said they might hold interests that could affect the order in which creditors are paid if foreclosure proceeds.
The lawsuit seeks judgment on two Small Business Administration-backed loans issued in 2019 totaling $3.93 million and asks the court to foreclose mortgages securing funeral home properties in Marion, Hillsboro, Council Grove, Whitewater, and Herington.
According to the petition, ReadyCap alleges the borrowers defaulted on the loans and failed to cure the defaults after notice was provided April 30.
The lender alleges that as of April 30, $1,134,075.06 in principal remained due on one loan, along with $184,894.83 in accrued interest, $18,113.23 in late fees, and $48,696 in loan fees.
On the second loan, ReadyCap alleges $2,493,611.56 remained due in principal, along with $346,762.94 in accrued interest, $47,570.86 in late fees, and additional fees, costs, and expenses.
ReadyCap is asking the court to foreclose on the mortgaged properties, determine the priority of competing claims, and order the properties sold. The petition also seeks issuance of sheriff’s deeds after foreclosure.
The action is the latest development in a series of legal and financial disputes involving the Yazel-Megli operation.
Earlier this month, Itria Ventures filed a separate lawsuit against Yazel-Megli Funeral Holdings and, specifically, Yazel alleging default on a cash-advance agreement.
Court filings in that case allege Itria advanced $40,000 in exchange for future receivables and that required payments ceased in April.
Ownership of the funeral home companies also changed April 2.
Documents show Yazel resigned from management positions in both Yazel-Megli Funeral Holdings and Yazel-Megli Property Holdings and transferred his ownership to Roger and Sandra Megli.
The transfer agreement states that company liabilities were significant relative to assets and that the value of Yazel’s ownership interests was uncertain and subject to substantial risk.
The agreement further states that the transfer was not intended to hinder, delay, or defraud creditors.
Roger Megli said information had been provided to authorities.
“This is an ongoing investigation with Brad at this time, and there’s information that has been turned over to the authorities, and this is all we’re going to say at this point,” he said.
At one point, Bradley Yazel reached out to the Marion County Record via text, but that communication quickly ceased.
Marion County attorney Michelle Brown said her office had not received a criminal case related to the matter. The KBI reviewed information connected to the dispute and found no crime, Brown said.
The foreclosure petition itself does not allege fraud, embezzlement, or criminal wrongdoing. It is a civil action seeking enforcement of promissory notes, guaranties, mortgages, security agreements, and other loan documents.
The petition notes that the KDOR previously filed tax liens against Yazel-Megli Funeral Holdings in 2023 and 2025. It also notes that Zeiner holds recorded mortgage interests against some of the properties. Both were named so the court could determine the priority of competing claims.