Two men have been arrested for fraud and money laundering as part of an ongoing investigation into illegal recycling export paperwork, the Environment Agency confirmed. The arrests took place on Wednesday, March 12, 2025, following a joint operation between the Environment Agency and the North West Regional Organised Crime Unit.
The investigation uncovered that fraudulent packaging export notes—which legitimate businesses use to cover recycling costs—were unlawfully sold for £747,000.
Details of the Arrests
- A 45-year-old man was arrested at a property in Rusholme.
- A 43-year-old man was detained in Stretford.
- Both suspects have been interviewed and released on bail, while the evidence collected will support the next phase of the investigation.
How the Recycling Fraud Worked
The Packaging Producer Responsibility Regulations require producers of waste packaging (such as plastic, glass, and cardboard) to contribute financially to the cost of recycling.
- Businesses must prove they have contributed by purchasing Packaging Export Recovery Notes (PERNs).
- These credits hold monetary value, making them a target for organised criminal gangs.
- Fraudsters illegally sold these credits, leading to financial losses for law-abiding businesses and damaging the environment.
Statements from Authorities
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, impacts the circular economy, and harms the environment. The Environment Agency is determined to clamp down on such illegal activities.
These arrests mark a significant milestone in our investigation. Our teams will now examine the evidence to bring those responsible to justice.”
Detective Chief Inspector Zoe Russo, North West Regional Organised Crime Unit, added:
“These arrests highlight the importance of collaborative efforts in tackling organised crime. We remain committed to disrupting and dismantling criminal networks involved in waste crime and fraudulent financial activities.”
Public Assistance & Reporting Suspicious Activity
The Environment Agency urges the public to report any information related to waste crime:
- Environment Agency’s 24-hour hotline: 0800 807060
- Crimestoppers (anonymous reporting): 0800 555 111 or visit their website
This £747,000 fraud case highlights how criminal gangs exploit recycling regulations for financial gain. The arrests of these two suspects mark a major step in the fight against waste crime.
The Environment Agency, along with law enforcement partners, continues its crackdown on fraud in the waste sector, ensuring legitimate businesses are protected, and criminals are brought to justice.
