Police have arrested six members of a Lithuanian gang on suspicion of keeping people as slaves and forcing them to collect charity bags. Officers struck at around 5.30am today on homes across Newcastle and Gateshead.
Twelve people, believed to have been victims of modern day slavery offences, were also removed from the properties during the early morning raids. The raids came after an investigation, launched last year, into a suspected Lithuanian organised crime group.
Officers believe the alleged gang may have been trafficking people into the north-east of the country from Eastern Europe.
It is thought the suspected slaves were then made to travel across Newcastle collecting donations of clothes left out for charity.
It is alleged these were then processed at a factory in North Shields before being sold abroad, with a cut of the proceeds expected to go back to the charities.
Police believe those carrying out the work were housed in 'sub-standard' shared accommodation and their wages and benefits were controlled by their employers. Superintendent Steve Barron, who is leading the operation, said 12 potential victims have been safeguarded following the morning raids.
He said: 'Our priority, through the work we do in the name of Operation Sanctuary, is to safeguard vulnerable people in our region and victims of modern day slavery, trafficking and associated offences are among some of the most vulnerable we will come across.
'Often individuals don't realise that they are victims and the small wage they earn in this country often exceeds anything they would earn in their home country.
'They are brought into the country on the promise of work, housed in sub-standard accommodation and their benefits and finances are all controlled by their employer.'
He added: 'By executing warrants such as those carried out today, we can help to provide potentially vulnerable victims with the support they need while also disrupting suspected criminal activity.
'We do not believe that any of the charities involved would know that those collecting their bags were potentially victims of modern day slavery and human trafficking. Northumbria Police believe the suspects ran a legitimate business that was then used as a front for their criminal activity.
The business buys in thousands of empty charity bags from across the country and abroad before distributing them to their workers who hand them out to the public to be filled. The clothing from the collected bags is then sold abroad and the company takes a cut of the money.
Police said the charities involved would have been completely unaware many of the employees were potential slavery victims.
HMRC are running a separate investigation to establish whether any of the proceeds from the business were going to the charities in question.
Superintendent Barron added: 'Modern day slavery, trafficking and associated offences are a real challenge in the UK today but local forces like Northumbria will continue to work with national bodies to disrupt this type of criminality and safeguard those vulnerable individuals at the heart of it.
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