Two men have been formally charged following a comprehensive fraud investigation into the collapse of a prominent pre-paid funeral plan company, which left tens of thousands of customers financially exposed and uncertain about their future arrangements.
Charges Brought in Safe Hands Funeral Plan Case
The Serious Fraud Office (SFO) has confirmed that Richard Wells, aged 39 and currently residing in Spain, alongside Neil Debenham, aged 43 from Norwich, have been charged with conspiracy to defraud. This development stems from the dramatic failure of the Safe Hands funeral plan scheme, which entered administration in 2022, resulting in approximately 46,000 customers losing the funds they had diligently saved to cover their funeral expenses.
Scheme Promised Peace of Mind to Vulnerable Customers
Emma Luxton, the Director of Operations at the SFO, provided a stark assessment of the situation. "This scheme marketed peace of mind to tens of thousands of people, many of them vulnerable," Luxton stated. "That promise dissolved when it collapsed, leaving plan holders exposed, out of pocket and uncertain about their funeral arrangements." She emphasised that these charges represent "a critical step in our investigation" into the affairs of Safe Hands and its parent company, SHP Capital Holdings.
The investigation, launched by the SFO in 2023, focuses on potential fraudulent activities surrounding the company's operations. Richard Wells served as a former director of SHP Capital, while Neil Debenham held a senior executive position within the business. The charges specifically relate to the firm's collapse, which occurred after it failed to secure the necessary regulatory approval from the Financial Conduct Authority (FCA) to continue selling its plans.
Regulatory Changes and Industry Context
Pre-paid funeral plans are designed to allow individuals to pay for their funeral in advance, thereby alleviating the financial burden on their families after their death. Historically, this sector operated with limited oversight, but since July 2022, all firms offering such products have been required to obtain full authorisation from the FCA to operate legally.
Safe Hands was one of numerous companies operating in this previously under-regulated segment of the funeral industry. Its failure transpired in the months immediately preceding the implementation of these new, stricter rules. Company administrators subsequently confirmed that Safe Hands was financially incapable of covering the funeral costs for its vast customer base, leaving thousands without the service they had paid for.
The two accused men are scheduled to make their initial appearance at Westminster Magistrates' Court on the 5th of February, where the legal proceedings will formally commence.
