Major strike against charity bag fraud
The City of London Police has conducted a major strike against an organised crime gang suspected of stealing second hand clothes worth hundreds of thousands of pounds to UK charities.
On Thursday morning (8 September 2011) 30 officers descended on a depot in Rainham, Essex, believed to be the hub of an international criminal network.
Two men were arrested, one on suspicion of fraud by false representation and the other on suspicion of fraud by false representation and money laundering.
A further two men were arrested shortly after at properties in south east London and Essex, one on suspicion of fraud by false representation and the other on suspicion of fraud by false representation and money laundering. All four men were later released on bail.
During the course of the day £20,000 in cash was seized, along with charity bags, computers and correspondence.
Charity bag fraud is estimated to be costing the third sector up to 50 million pounds each year, leading to the cancellation of vital aid projects.
The NFIB is uncovering increasing evidence of organised crime gangs targeting bags of second hand clothes left out on the pavements for charities to collect.
The gangs are also setting up their own unregistered charities to dupe people into making donations using fraudulent charity bags sent through the post.
The bogus charity's collectors, many of whom have been trafficked in from abroad and operating with false ID cards, will move into an area early in the morning to collect their own bags plus any others left for legitimate charities.
The stolen clothes are channelled back to depots in the South East to be exported abroad and sold, mainly in chains of supermarket style shops in countries such as Poland, Latvia and Lithuania.
City of London Police Commander, Ian Dyson, said:
"Charity bag fraud threat is a serious criminal threat stealing millions of pounds from those who help the most vulnerable in society, both at home and abroad.
"Today's operation highlights how police forces and charities are sharing intelligence with the NFIB to identify and then dismantle the criminal networks who continue to steal from our streets to sell on high streets across Eastern Europe.
"Investigating this type of criminality is a major priority for the City of London Police, and those who continue to offend should expect our officers to come calling sometime soon."
In June the NFIB and City of London Police hosted a national forum for charities and representatives from law enforcement and Westminster to establish a national strategy to combat the emerging threat.
As part of this new approach a charity bag fraud desk has been set up at the NFIB, drawing on volunteers from the sector.
The desk is using the most advanced police analytical system in the world to assess criminal intelligence and co-ordinate the national police response.
On 14 September the Fundraising Standards Board (FRSB) and Institute of Fundraising (IoF) are bringing together the key stakeholders to address the recent increase in charity bag fraud.
The Charity Clothing Collections Symposium will advise on what can be done to minimise future theft, with Nick Hurd MP delivering the keynote speech.
Nick Hurd, Minister for Civil Society, said:
"The City of London Police are doing a great job making sure the criminals who prey on good will and starve charities of millions of pounds face the consequences. The Government is committed to working with the Police and charities to tackle this shameful crime."
Michael Lomotey, Business Manager, Clothes Aid
"Clothes Aid has been supporting the City of London Police throughout 2011 in their work on clamping down on 'bogus collectors'. We have been helping from an industry perspective and we are extremely pleased that they [have been able to make various arrests].
The fewer bogus clothes collectors on the streets means that the legitimate work of licensed clothing collectors on behalf of charities can continue. It is essential that licensed clothing collectors work directly with police so that 'bogus collectors', as they are known, cease to exist."
NSPCC Director of fundraising, Paul Amadi said:
"The NSPCC is grateful to the City of London police for cracking down on this heartless crime. The theft of charity clothes bags not only takes away valuable funds from the NSPCC, it damages the public's confidence to donate in these challenging economic times.
"Our partnership with Clothes Aid has generated over £1.7 million towards the NSPCC's work to support and protect vulnerable children in the UK. We are grateful for the public's generosity and would urge them to continue to donate their clothes. Genuine NSPCC bags will always have our registered charity number."
