Recovering the Proceeds of Environmental Crime
Posted by Lee May on 24th March 2011
It is widely accepted and understood that those who make money out of drug running or fraud should forfeit their ill-gotten gains. What is less well known is that income derived from environmental offences can also be confiscated by the authorities.
Those convicted of offences such as fly tipping or running an illegal waste operation can be handed substantial fines in the courts. These can run into tens or even hundreds of thousands of pounds. But if the illegal activity is a very lucrative one then these fines are often viewed as nothing more than a routine business risk, a cost which can be absorbed. In appropriate cases the Proceeds of Crime Act 2002 enables bodies such as the Environment Agency and local councils to obtain a confiscation order which will require the offender to repay any money made from an illegal activity.
In one recent case the Environment Agency prosecuted the operators of an illegal scrap metal yard where hundreds of vehicles were being broken up without adequate safeguards for the environment. The two defendants were fined a total of £23,000 and ordered to pay costs of £17,500. But these figures were dwarfed by the confiscation order requiring them to pay back £275,000 in proceeds of their criminal activity.
It is not only environmental offences which are subject to the confiscation rules. They also apply to offences under planning laws such as failing to comply with an enforcement notice requiring an unlawful use of land to cease. For example last year the operators of an illegal car park were ordered to pay back £760,000.
The message from the authorities and the courts is clear: those who flout the law or run operations in disregard of environmental and planning rules are at risk of having their illegal receipts confiscated.
Some cases of illegality are fairly clear cut and deserve to be treated harshly, but given the complexity of the environmental legislation even reputable businesses can fall foul of the rules from time to time. For example, waste transfer or landfill sites can be prosecuted for a breach of their environmental permit which has caused noise or odour problems. These in turn can be the result of errors made by individual employees or the breakdown of equipment, but whatever the reason, it could also lead to an application for a order seeking confiscation of some of the operator’s profits.
The lesson for businesses in this sector it to keep on top of your operation and ensure that you stay on the right side of the law. If you end up in court you may lose more than you bargained for.
