Two men have been charged with conspiracy to defraud over the collapse of Safe Hands pre-paid funeral scheme, which left 46,000 families potentially out of pocket and uncertain about their funeral arrangements
A UK funeral firm has crashed into administration – leaving 46,000 families out of pocket and uncertain about their funeral arrangements.
Two individuals have been charged in connection with the UK funeral firm’s downfall which put tens of thousands of families at risk of losing their money. Richard Wells and Neil Debenham face charges of conspiracy to defraud following the collapse of the Safe Hands pre-paid scheme.
The Serious Fraud Office (SFO) announced it had charged Richard Wells, 39, currently residing in Spain, and Neil Debenham, 43, from Norwich, with conspiracy to defraud. Emma Luxton, director of operations at the SFO said: “This scheme marketed peace of mind to tens of thousands of people, many of them vulnerable.”
“That promise dissolved when it collapsed, leaving plan holders exposed, out of pocket and uncertain about their funeral arrangements.” The charges represent “a critical step in our investigation”, Luxton added.
This development follows an inquiry by the agency into suspected fraud at Safe Hands and its parent company, SHP Capital Holdings. The SFO stated the charges were connected to the business’s collapse after it failed to obtain essential regulatory approval for the continued sale of its plans.
Safe Hands was amongst dozens of firms operating in the previously unregulated funeral plan selling sector. A prepaid funeral plan enables you to cover the primary costs of a funeral ahead of time. These plans usually include many, but not all, funeral-related expenses such as a coffin, funeral director services, cremation fees, and transportation of the body.
Having a prepaid plan can significantly reduce the burden on your loved ones when you pass away, often leaving them with little or even nothing to pay towards your funeral – a significant relief for many. However it was reported one such plan failed in the months leading up to new regulations being implemented. This left the administrators unable to cover the funeral costs of its customers.
BBC and ITV personality Martin Lewis has previously discussed prepaid funeral plans, stating: “If funeral costs rise in future, your funeral plan is protected against inflation.” He said: “However, some costs are considered to be from a third party (like cremation fees). If these have risen and aren’t covered in full by your plan, your loved ones might have to make up the difference.”
The Daily Star previously reported on five UK firms which have fallen into administration as they grapple with a host of challenges, both unique to the country and global in nature. Soaring costs, inflation, and sluggish demand are universal problems as supply chains face disruption and households a burdened with escalating living expenses.
Amongst these companies TGI Fridays’ UK arm fell into administration on January 13, with Interpath taking over Liberty Bar and Restaurant group, which managed TGI Fridays’ UK outlets. A total of 16 restaurants have been closed, leaving 456 staff jobless.