KATIE HOLMES’ BRO-IN-LAW AT THE CENTER OF A FRAUD INVESTIGATION!

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Katie Holmes is desperately trying to ease her recently widowed sister’s new heartache — her late brother-in-law, a funeral home director, is now at the center of a fraud investigation!

Authorities claim $180,000 — money that 45 customers paid in advance for burial to Katie’s relative Jeffrey Fretti — has vanished.

Sources say Katie and her husband Tom Cruise have offered to move her grieving sister Tamara to Hollywood to get her away from the scandal and give her a fresh start.

Fretti, director of a prominent funeral home in Toledo, Ohio, was estranged from Tamara when he died in April at his mother’s home in Florida. There have been rumors of suicide, but results of an autopsy have not yet been released.

After his death, it was revealed that a bank had placed liens for $495,000 against him and his business.

Pick up this week’s issue of The ENQUIRER for more details!