Two men charged over UK funeral firm collapse that left 46,000 ‘out of pocket’ | UK news

Two men have been charged following a fraud investigation that left tens of thousands of people “out of pocket” when a pre-paid funeral firm collapsed.

When Safe Hands goes bankrupt in 2022, nearly 46,000 customers lose money they had saved for funeral expenses.

The Serious Fraud Office (SFO) said it had charged Richard Wells, 39, of Spain, and Neil Debenham, 43, of Norwich, with conspiracy to defraud.

“This scheme has given peace of mind to tens of thousands of people, many of whom are vulnerable,” said Emma Luxton, SFO’s director of operations.

“That promise ended when the plan collapsed, leaving the owners short-changed, out of pocket and in limbo about funeral arrangements.” Luxton added that the charges are “a critical step in our investigation.”

This follows the agency’s investigation into potential fraud at Safe Hands and its parent company, SHP Capital Holdings. Wells was a former director of SHP Capital, while Debenhams was a senior executive at the company.

The SFO said the charges related to the collapse of the business after it failed to obtain the necessary regulatory approval for the ongoing sale of its schemes. The agency opened an investigation in 2023.

Prepaid funeral plans offer a way for people to pay for their own funeral expenses in advance and avoid passing that cost on to their family when they die. Since 2022, companies offering such products must receive approval from the Financial Conduct Authority to operate.

Safe Hands was one of dozens of companies operating in the previously unregulated funeral sales industry. It failed in the months before the new rules came into force, and administrators said their clients could not afford funeral expenses.

The men are expected to appear at Westminster magistrates’ court on February 5.