North Yorkshire Police launched the investigation after Hayley Owen and her husband Dave, who run Hayley Owen Funeral Director, were accused of fraud and theft. The force announced on Saturday that the probe, which has concluded, did “not find any evidence of dishonesty” and the two people who were arrested in June will face no further action.
Ms Owen said the allegations have caused “a lot of misery and heartache” and wasted the police’s time.
She said: “The knowledge that we were completely innocent of the charges and faith in the legal system is what saw us through, along with the support of family, friends and other funeral professionals who know us best.
“But we are human and it would be wrong to say that we haven't been affected by it. We have worked so hard to establish this business and never had any complaints until these false allegations were made.
“We take professionalism seriously so we have naturally felt betrayed, disappointed and disillusioned. We have always, and will continue, to bend over backwards to help bereaved families and accommodate their wishes however unusual.
“The person or persons who made these allegations is responsible for a lot of misery and heartache in York.
"They are also responsible for a huge cost to the public purse, because we know only too well how detailed the police investigation was and the enormous resources expended.”
“I now expect to see a case being brought for wasting police time.”
North Yorkshire Police said it had a duty to investigate the allegations and conducted “a very thorough investigation that was both complex and sensitive”.
In a statement, the force added: “Our thoughts and thanks are with the families who were directly affected by the investigation for their cooperation during what was a distressing situation for them.
“The outcome of the investigation has been shared with the City of York Council, who have provided support for bereaved families during the investigation.”