Manual Middle Man, A Brokers Tale

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University archives show that Rathburn helped the program rebound from complaints by donor families about poor customer service. In , Rathburn was prominently featured in the monthly Ann Arbor Observer newspaper. He did. In a photograph accompanying the story, Rathburn wears a tie, lab coat and broad smile. Two years later, however, Rathburn left the school, records show, following unspecified allegations of misconduct. He obtained a court order barring release of his personnel records. But recently, two people with direct knowledge disclosed the alleged transgression: Rathburn mishandled the donor ashes, a cardinal sin in the funeral industry.

With that information shielded from public view, Rathburn set out in the early s to sell body parts. One reason entrepreneurs like Rathburn can avoid scrutiny is the patchwork of state laws relating to the sale of body parts. Only 10 states provide meaningful oversight, and almost all of them do it differently.

For example, Virginia and Florida regulators need to give advance permission before a broker may bring body parts into the state for research or training. In Oklahoma and Oregon, regulators do not require prior approval to ship individual body parts, but they do inspect brokers regularly and require stringent record-keeping.


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In two of the 10 states, the laws do not appear to be a high priority. Perhaps no agency in America imposes tighter controls on body brokers than the New York state health department. New York requires licenses, inspections and annual statistical reports — for any broker, even those not based in the state, that ships body parts to customers in New York.

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State health officials travel around the country to inspect brokers. Though Rathburn was notified of the visit a week in advance, the inspector still found serious deficiencies — flaws that demonstrate how body parts can enter a black hole of accountability after being donated, dissected and shipped to customers.

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Among the problems: Rathburn could not produce documents proving that bodies were donated willingly. Rathburn, the records show, contended that privacy laws and supplier policies prevented him from providing such proof. New York officials said that was no excuse for not supplying consent forms. In , officials told Rathburn he could no longer ship body parts to New York until he resolved their concerns. In , New York health officials issued Rathburn a provisional license, allowing him to resume operations there.

The official did not elaborate on what agency that might be. At least one broker voiced concern during this period. Walter Mitchell, former owner of BioGift, an Oregon body donation firm, said he stopped supplying body parts to Rathburn after a incident. A week after shipping two human torsos to Rathburn in Detroit, Mitchell got a call from the airline that transported them. No one had picked up the packages at the airport.

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People familiar with the deal said he chose the properties because they were strategically located near two interstate highway exits, a convention center and a medical school. The neighborhood also was on the upswing. Faced with community opposition, Rathburn abandoned the plan and struggled financially. As part of the bankruptcy filing, Rathburn provided a list of assets. The inventory included 14 chairs, 10 file cabinets, 91 heads, 18 spines, six hips and a copy of the Hippocratic Oath.

Despite the bankruptcy, Rathburn continued to operate.

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Through , six body brokers shipped him more than body parts worth hundreds of thousands of dollars, court and New York health department records show. And federal authorities came into contact with Rathburn or his employees a dozen times — including six border crossings — from through In and again in , federal law enforcement records show, Rathburn was stopped returning from Canada.

Each time, he was carrying 10 human heads. In , picnic-style coolers containing eight heads in red liquid arrived at the Detroit airport. Border agents confronted Rathburn. The alleged lies to the federal agents appeared to accelerate the investigation of Rathburn, court records show, though no one intervened to search his warehouse or stop his business. No attendees were harmed, although they would not learn of the potential danger for years. No other action was taken against him at the time.

Among those remains: the head, two legs and a shoulder from Glorious Pearl Jeffries, according to her daughter, Lachell Jeffries-Hanson. The Chicago-area wedding planner, who died at age 72 of a pulmonary embolism, hoped her donation would educate others, the daughter recalled.


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As a victim, however, you have the right to know the truth Rathburn was arrested in January By then, he told agents, he was homeless and living out of his van. Discover Thomson Reuters. Middlemen can be small companies or large corporations with an international presence. The rise of e-commerce has changed the dynamics of where a middleman fits in some types of industries, and legislation continues to evolve in response. In the supply chain, a middleman may represent a distributor who purchases goods from the manufacturer and sells them to a retailer, often at an increased price.

Salespeople are often considered middlemen, such as real estate agents who match homebuyers with sellers.


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  7. Certain industries, either by policy, infrastructure, or mandate, include a middleman layer of business. For example, automobile makers typically do not sell vehicles directly to consumers. Instead, their products are sold through auto dealers, who may include various accessories, options, and upgrades to upsell cars at a higher premium. Auto dealerships try to sell pricier versions of cars in order to turn a greater profit for themselves, as a large portion of the sales revenue goes back to the manufacturer.

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    The same is true for electronics, appliances, and other retail products. Sellers of electronics and appliances may attempt to steer customers to higher-end products in order to secure a greater profit margin than low-priced items. Such middlemen may be constrained by the manufacturer in the ways they can sell a product, including how it is marketed or if the product can be packaged with other items to create special offers.

    In certain states, the sale of alcoholic beverages may be structured to require retailers, bars , and restaurants to purchase products through a liquor distributor. Under such policies, a winery cannot sell its products directly to retailers. This can limit the availability of their products as they are beholden to the middleman distributors who control the channels they can pass their wine through. Such constraints may also extend to the sale and shipment of their products from one state to another.

    For example, some states prohibit or allow the sale and shipment of products such as wine directly to the consumer through online purchases, thus eliminating the layers of middlemen. This has proven to be a contentious challenge to the distribution segment of the industry, which relied on wine and spirits makers being required to ship their wares through them. Financial Technology. Company Profiles. Real Estate Investing. Investopedia uses cookies to provide you with a great user experience.

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