Two directors of former Neath-based recycling company Nationwide Recycling Ltd have been jailed for four years after admitting to packaging recovery note (PRN) fraud amounting to £2.8 million.
Andrew Thomas, 46, of Bonymaen, Swansea, and Paul Thomas, also 46, of Morriston, Swansea, were also ordered to repay £224,702 and £218,702 respectively in the next six months or face an extra 32 months in jail. Both men have also been disqualified from being directors of a business for 10 years.
Nominal £100 fines were given to the now-liquidated firm for issuing PRN certificates for waste that had not been received and two offences of operating contrary to Environmental Permitting (England and Wales) Regulations.
Case background
The pair had pleaded guilty to fraud and money laundering charges in October 2012, after an investigation by Environment Agency Wales (EAW, now Natural Resources Wales) in 2010 found that the company was adding weight to plant machinery and lorries in order to falsify weighbridge tickets and invoices for recycled materials that it never received nor processed.
According to the prosecution, in one month in 2009 a total of £19,000 worth of PRNs was over-claimed and that despite company records showing 29 loads of glass had been received, surveillance only showed 10 loads.
The investigation also found that company directors were taking metal cans for recycling from local authorities, then selling the cans to local scrap dealers and keeping the cash. The money generated through fraudulently selling these cans is estimated at just under £300,000.
Last month, the two directors and several other employees were faced with numerous charges including those relating to money laundering (to the count of approximately £295,000), conspiracy to commit fraud by false representation (representing an accrual of over £2 million), and 'consenting or conniving' as director in a regulated facility without the relevant environmental permits.
Staff members Beverley Bradford and Terrance Ainge were each given two-year jail terms, suspended for two years, at Swansea Crown Court on 5 July, after they admitted conspiracy to commit fraud by false representation.
Pair had 'lived lives beyond legitimate means'
At a hearing at Swansea Crown Court on Friday (19 July), Judge Keith Thomas sentenced the men to four years in jail, saying: "I've no doubt you spent large amounts of money on garish tokens of wealth and lived your lives beyond legitimate means.
"The [PRN] system is an important tool in controlling environmental waste and pollution, but it requires the good faith and honesty of those involved for it to operate effectively."
The judge added the two had "undermined public confidence" in the recycling system and had gained up to £1,569,000 from the fraud. According to court, the "garish tokens of wealth" bought from company money included a £90,000 yacht, a £111,000 Audi car and a three-week holiday to Thailand.
Lead officer in the case, John Rock, of Natural Resources Wales said: "As regulators of the waste industry, we have to make sure that all companies operate legally to make sure there is a level playing field.
"Occasionally, there are those who break the law simply to profit from their activities and this will not be tolerated.
"In this case, the actions of the offenders have undermined the recycling markets and industry which are vital to make sure the waste we all produce is not sent to landfill.
"People who do consider breaking the law simply to make money must understand that not only will they be punished for their offences, the profits they make are also at risk."
Read more about the Nationwide Recycling case.
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