In an early morning operation on 23 February 2026, officers from the Environment Agency (EA) worked alongside Devon and Cornwall Police to arrest a 47-year-old man and a 47-year-old woman at residential properties in Penzance.
The arrests relate to suspected fraud within the UK’s Packaging Producer Responsibility regime.
Both individuals were interviewed and later released pending further investigation. The EA said evidence gathered during the operation will now be examined to support further action.
Circular Economy Minister Mary Creagh commented: “This shocking case of waste packaging fraud has harmed legitimate businesses and robbed communities of funding for their recycling services.”
Alleged £6m packaging waste fraud
The investigation centres on alleged abuse of the Packaging Producer Responsibility system, under which accredited reprocessors can issue Packaging Recovery Notes (PRNs) or Packaging Export Recovery Notes (PERNs) for packaging waste they recycle or export for recycling.
Under the regulations, producers of packaging – including materials such as glass and plastic – are required to purchase these credits to demonstrate they have met their recycling obligations and contributed financially to the cost of managing packaging waste.
In this case, those arrested are suspected of selling more than £6 million worth of credits for packaging they claimed to have reprocessed.
However, the EA believes a significant proportion of that recycling activity did not take place and that reprocessing figures may have been artificially inflated.
The pair are also suspected of laundering the proceeds generated from the alleged fraudulent activity.
‘Dramatic rise’ in PERN fraud
The EA launched a new Economic Crime Unit last year to carry out financial investigations in the waste sector in 2024, reporting seeing a “dramatic rise” in waste export fraud over the last three years.
Emma Viner, Enforcement and Investigations Manager in the EA’s National Environmental Crime Unit, added: “These arrests mark another important step in our war against waste criminals.
“Whether it’s defrauding the waste sector or dumping rubbish in our towns and cities, the Environment Agency is working tirelessly to catch those responsible.”
Packaging Export Recycling Notes (PERNs) aim to enforce recycling obligations, but criminals often falsely claim to have exported packaging waste that either never existed, was not UK sourced or had already been the subject of a claim.
Rogue operators exploit the PERN system by falsifying documents.
The EA has said that it’s found evidence of sophisticated and established money laundering networks set up to receive not only the proceeds of Packaging Export Recycling Note fraud but monies from benefit fraud, VAT fraud and acquisitive crime.
It added that waste export fraud results in waste being exported out of the UK – and often ending up dumped in locations overseas where it harms the environment.
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