The Crown Prosecution Service has said that Tom Henderson, the ShelterBox founder and former chief executive accused of a £1.5m fraud involving the charity, will not be facing a retrial.
Henderson, 65, his son John, 36, and associate Darren Gervis, 43, had faced charges at the Old Bailey in London of conspiracy to commit fraud between January 2007 and December 2012.
The trial ended two weeks ago with the jury unable to reach a verdict. The CPS said it would decide whether to seek a retrial.
A CPS spokesman told Third Sector that it would not be applying for a retrial.
It was alleged that Tom Henderson fraudulently awarded contracts worth more than £1.5m to his son.
At the original trial, the court heard that Henderson allegedly ensured his son's companies were favoured to supply the charity with stoves, tents and multi-tools in deals worth hundreds of thousands of pounds.
When trustees of the charity began to ask questions, the Hendersons allegedly brought in Gervis to set up sham companies to hide the fraud, the court was told.
All three of the defendants denied the charges against them.
Tom Henderson told the court he stayed at arm’s length from any business deals between the charity and his son.
John Henderson told the court he believed they were arrested only because the new management needed to bolster their employment tribunal case against his father after they "screwed up" by sacking him.
After deliberating for a week, the jury of seven men and four women told the judge they were hopelessly deadlocked.