Two men were arrested for fraud and money laundering yesterday (Wednesday 12 March) as part of ongoing investigation into illegal recycling export paperwork.
Officers from the Environment Agency and North West Regional Organised Crime Unit worked together to secure the arrests and custody of the suspects following an extensive investigation which found packaging export notes, used by law-biding firms exporting waste to cover recycling costs, were unlawfully sold for £747,000.
A 45-year-old man was arrested at a property in Rusholme, while a 43-year-old man was detained in Stretford. Both have now been interviewed and released on bail, while evidence gathered by the Environment Agency during the arrests will support the next part of their investigation.
Vernon Smith, Acting Deputy Director for Environmental Markets and Regulation at the Environment Agency, said:
“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.”
Detective Chief Inspector Zoe Russo from the North West Regional Organised Crime Unit 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.”
The Packaging Producer Responsibility Regulations were introduced to oblige the producers of waste packaging such as plastic, glass and cardboard to contribute towards the financial cost of recycling and disposing the waste.
Businesses that meet the criteria are required to prove they have made a financial contribution by purchasing credits, known as Packaging Export Recovery Notes, from waste reprocessors or exporters. However, the credits have a monetary value which means organised criminal gangs can look to infiltrate the sector and engage in high value fraud and money laundering.
