Two people have been arrested in Cornwall as part of a multi-million-pound investigation into packaging waste fraud and money laundering.
On the morning of February 23, 2026, officers from the Environment Agency (EA) and Devon and Cornwall Police arrested a 47-year-old man and a 47-year-old woman at homes in Penzance.
The arrests relate to suspected fraud within the UK’s Packaging Producer Responsibility system.
Both individuals were interviewed and later released as the investigation continues. The EA will examine evidence collected during the operation to support further action.
Circular Economy Minister Mary Creagh said: “This shocking case of waste packaging fraud has harmed legitimate businesses and robbed communities of funding for their recycling services.”
The investigation focuses on the alleged misuse of the Packaging Producer Responsibility system. This system allows accredited recyclers to issue Packaging Recovery Notes (PRNs) or Packaging Export Recovery Notes (PERNs) for packaging waste they recycle or export.
Under these regulations, packaging producers, including those using materials such as glass and plastic, must purchase these credits to demonstrate they have met their recycling obligations and contributed to the management of packaging waste.
In this case, the arrested individuals are suspected of selling over £6 million worth of credits for packaging they claimed to have recycled. However, the EA believes much of this recycling did not occur and that recycling numbers may have been artificially inflated. The pair is also suspected of laundering money from this alleged fraud.
The EA set up a new Economic Crime Unit last year to investigate financial crimes in the waste sector and has seen a “dramatic rise” in waste export fraud over the last three years.
Emma Viner, Manager of the EA’s National Environmental Crime Unit, stated, “These arrests mark an important step in our fight against waste criminals. Whether defrauding the waste sector or dumping rubbish in our communities, the Environment Agency is working hard to catch those responsible.”
PERNs aim to ensure recycling obligations are met, but some criminals falsely claim to have exported packaging waste that either does not exist, was not sourced from the UK, or has already been claimed. Rogue operators cheat the PERN system by forging documents.
The EA has found evidence of advanced money-laundering networks that handle not only proceeds from Packaging Export Recycling Note fraud but also funds from benefit fraud, VAT fraud, and other crimes. This type of fraud results in waste being exported from the UK, often leading to dumping in overseas locations that harm the environment.
Image credit: Environment Agency
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