Two men have been charged after a fraud investigation at a pre-paid funeral firm that left tens of thousands of people “out of pocket” when it collapsed.
About 46,000 customers lost the money they had saved up to pay for their funeral when Safe Hands went bust in 2022.
The Serious Fraud Office (SFO) said it had charged Richard Wells, 39, residing in Spain, and Neil Debenham, 43, of Norwich, with conspiracy to defraud.
“This scheme marketed peace of mind to tens of thousands of people, many of them vulnerable,” said Emma Luxton, director of operations at the SFO.
“That promise dissolved when it collapsed, leaving plan holders exposed, out of pocket and uncertain about their funeral arrangements.” The charges marked “a critical step in our investigation”, Luxton added.
It comes after an investigation by the agency into potential fraud at Safe Hands and its parent company, SHP Capital Holdings. Wells is a former director of SHP Capital while Debenhams was a senior executive at the business.
The SFO said the charges related to the collapse of the business after it failed to secure necessary regulatory approval for the ongoing sale of its plans. The agency launched an investigation in 2023.
Pre-paid funeral plans offer a route for people to pay for their own funeral in advance and avoid passing that cost on to their families when they die. Since 2022, firms offering this kind of product have required approval to operate from the Financial Conduct Authority.
Safe Hands was one of dozens of companies operating in the previously unregulated funeral selling industry. It failed in the months leading up to the new rules coming in and the administrators said it was unable to cover the funeral costs of its customers.
The men are due to appear at Westminster magistrates court on 5 February.
