Environment Agency makes arrests for £747,000 recycling credit fraud
A 45-year-old and 43-year-old have been released on bail as part of ongoing investigation into an illegal recycling export paperwork scheme.
Two men have been arrested in Manchester as part of an ongoing investigation into a recycling fraud scheme that saw the illegal sale of Packaging Export Recovery Notes (PERNs) worth £747,000.
The arrests, carried out on 12 March, were the result of a joint operation between the Environment Agency (EA) and the North West Regional Organised Crime Unit. A 45-year-old man was detained in Rusholme while a 43-year-old man was arrested in Stretford. Both were questioned and later released on bail as the investigation continues.
Vernon Smith, Acting Deputy for Environmental Markets and Regulation at the EA, commented: “Fraud in the recycling industry is waste crime. It undercuts legitimate businesses investing in growth in the circular economy impacting the environment we are striving to protect. The Environment Agency is determined to clamp down on it.
“Working with the North West Regional Organised Crime Unit, these arrests are a significant milestone for our extensive investigation. Our teams will now examine the evidence gathered to bring these individuals to justice and end their fraudulent activities once and for all.”
The authorities believe the suspects unlawfully sold export notes designed to ensure packaging waste is properly recycled. The monetary value of these credits has been one incentive for high value fraud and money laundering schemes.
Detective Chief Inspector of the North West Regional Organised Crime Unit, Zoe Russo, added: “These arrests highlight the importance of collaborative efforts in tackling organised crime. We are committed to working with our partners to disrupt and dismantle criminal networks involved in waste crime and other illegal activities. The evidence collected will be crucial in ensuring those responsible are held accountable.”
Environmental charity, RECOUP, recently urged for a review and overhaul of the PRN system, arguing that the current scheme does not provide the necessary stability to prevent waste crime and false recycled content claims.
