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Smith, Bizzell and Warner & Son Funeral Home could have its business operations suspended by the state for three months, or possibly longer, after the discovery of two babies’ remains in the ceiling prompted a visit from state inspectors Thursday.

State Professional Licensing Agency spokesman Nick Goodwin said that, based on the report, the board could take action by Friday afternoon to file a complaint with the attorney general’s office. The board would call an emergency meeting sometime next week and issue an emergency summary suspension, which forces the business to stop operations immediately for 90 days and allows the attorney general’s office to gather more evidence to bring the case before the board.

At a Thursday morning news conference at the funeral home, 4209 Grant St., funeral home spokesman Sean Howard said a former employee moved the bodies of two babies into the ceiling above the morgue for a few hours last fall, but the Lake County coroner’s office and Gary police say the bodies were found in the ceiling Wednesday.

Howard said the bodies had been stored in a secure container and funeral home staff had made efforts to find the next of kin in the ensuing years. The male infant appeared to have been stillborn, and he had a tag from Methodist Hospital suggesting he arrived in March 2012. The second infant, who appeared to be mummified, may have been at the funeral home since 1996 and investigators couldn’t determine a gender.

Gary police are no longer conducting an investigation, Gary police Sgt. Thomas Decanter said after meeting Thursday with the Lake County coroner’s office. However, police will assist as needed, Decanter said.

Howard said a male employee, who was the manager of the morgue, used a ladder to put the bodies in the ceiling in September 2014. When the funeral home manager noticed the ladder, she questioned him and he admitted to placing the remains there, Howard said. She placed the remains back in the cabinet promptly, Howard said, but when the Lake County coroner’s office removed the bodies Wednesday, the remains were found in the ceiling, according to a spokesman.

“We regret the actions of this particular individual and take full responsibility,” Howard said. “We were very disturbed by this particular employee’s actions.”

Howard said police instructed the funeral home not to comment on the employee’s reason for moving the remains.

In September 2014, Howard said the funeral home reached out to the coroner’s office in order to plan for a dignified burial or cremation. Once attempts to reach next of kin were exhausted, the coroner’s office took possession of the bodies Wednesday, Howard said.

Concord Family Services took ownership of Smith, Bizzell Warner & Son Funeral Home in June 2005, and the babies bodies had been held by two previous owners, Howard said.

“Since 2005, there have been renewed efforts constantly to attempt to find relatives, to find medical records, doctors’ records and what have you, but to no avail,” Howard said. “Our main goal is to get a license from the coroner to ensure that these fetuses are properly put to rest.”

Staff writer Lori Caldwell contributed to this report.