The action forms part of wider activity by the Environment Agency (EA) to tackle fraud and money laundering in the waste sector.
PERNs are purchased by packaging producers as a means of showing that they have made a financial contribution to the cost of recycling and disposing of packaging waste.
An investigation by the EA and North West Regional Organised Crime Unit is reported to have found that the pair unlawfully sold the recycling export paperwork.
The Manchester-based pair were detained on Wednesday (12 March 2025), both have now been released on bail following questioning.
Vernon Smith, acting deputy director for environmental markets and regulation at the EA, 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
The Packaging Producer Responsibility Regulations were introduced in 2007 to oblige the producers of waste packaging such as plastic, glass and cardboard to contribute towards the financial cost of recycling and disposing of the waste.
Businesses are required to purchased PERNs as a form of credit to prove they have made a financial contribution to waste reprocessors or exporters.
However, as the credits hold a monetary value, they have been subject to fraud and money laundering schemes by criminal gangs.
The EA has urged the public to come forward with any information that may assist with its investigation by calling its hotline on 0800 807060 or reporting it anonymously through Crimestoppers on 0800 555111 or their website.
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