Prosecutor Lesley Bates KC told the court Elkin and Bell Funerals was “insolvent” and its business model was “a case of robbing Peter to pay Paul”.
She said a cooling system fitted in the mortuary was not working and was unsuitable anyway because of the size of the room.
Assistant Chief Constable Tony Rowlinson said bodies had been kept in inappropriate conditions “time and time again”.
“What has happened here is a complete abandonment and a recklessness around the trust that Elkin and Bell had with the families that they were supposed to be serving,” he said.
“It is shocking, distressing and a complete betrayal. My feelings and heart go out to all of the families affected.”
Andrew Eddy, of the Crown Prosecution Service, said: “Today’s sentence marks an important moment — one of the first times funeral directors have been held criminally accountable for denying families a lawful and dignified burial.
“Richard Elkin and Hayley Bell abused their position of trust, stored bodies in degrading conditions, lied to grieving relatives, and continued trading when they knew they could not meet even basic obligations.”