SFO launches fraud inquiry into funeral plan firm which collapsed owing millions
The Serious Fraud Office (SFO) has launched a criminal investigation into a provider of pre-paid funeral plans.
Tens of thousands of customers had paid towards funeral plans priced up to £4,000 before Wakefield-based Safe Hands Plans failed last year.
Administrators FRP Advisory reported there was an estimated £70.5m claimed by approximately 46,000 plan holders who had paid toward funeral plans before the company collapsed.
The SFO announced that its investigation will look into suspected fraud at the firm and its parent company SHP Capital Holdings.
“Thousands of individuals from all corners of the UK lost peace and security after being sold a product on the basis it would help reduce the burden on their loved-ones upon their death”, SFO director Nick Ephgrave said.
Safe Hands went into administration in March 2022 after failing to secure authorisation to continue operating from the Financial Conduct Authority.
Richard Wells, 37, who was the owner and a director of SHP Capital Holdings, the parent company of Safe Hands, declared himself bankrupt last month.
MPs have pressed ministers over the FCA’s and the Government’s handling of Safe Hands since it was formed in 2014 and are calling on the Commons Treasury Select Committee to investigate.
The SFO sent requests for information to stockbrokers and financial institutions for its investigation, following similar requests made to UK banks and potential witnesses by the agency last month.
The investigation is the first formal criminal investigation announced since Mr Ephgrave, a former Metropolitan Police assistant commissioner, and the first non-lawyer to head the SFO, last month. He is reported to have asked SFO staff to do cases faster.
The Financial Conduct Authority, criticised for failing to respond early enough to the Safe Hands problems, has since clamped down on the industry, resulting in several going out of business, said last month there was “significant work for the industry to do to regain market and consumer confidence.”
