Listed below are recent posts across all of CalRecyle's blogs.
Out-of-State Container Crackdown Prevents $87,000 in CRV Fraud
Media Contact: Lance Klug
(916) 341-6293 | Lance.Klug@calrecycle.ca.gov
SACRAMENTO – The California Department of Resources Recycling and Recovery today announced the arrest of eight truck drivers on charges of felony recycling fraud, conspiracy, and attempted grand theft. Agents with the California Department of Justice’s Recycle Fraud Team made the arrests during a three-day sting operation near the Arizona border with San Bernardino and Riverside counties.
The suspects are accused of smuggling nearly 59,000 pounds of empty beverage containers from Arizona into California in an attempt to defraud the California Redemption Value Fund of more than $87,000. Since consumers outside California do not pay CRV fees on beverage purchases, out-of-state containers are not eligible for CRV redemptions.
CalRecycle photos of evidence gathered at a Blythe, Calif. checkpoint during CDOJ’s three-day recycling fraud interdiction operation in January 2018.
“Importing out-of-state empty beverage containers for CRV redemption is a crime,” CalRecycle Director Scott Smithline said. “To prevent this type of fraud, drivers transporting empty bottles and cans into California are required to pass through one of CDFA’s 16 border inspection stations—and CalRecycle is working alongside our law enforcement partners to make sure that happens.”
In coordination with CalRecycle and the California Department of Food and Agriculture, California DOJ agents conducted the targeted operation from January 23 through January 25, 2018, at CDFA border protection stations in Vidal and Blythe, Calif.
Under California law, drivers transporting out-of-state empty beverage containers are required to declare the material by submitting an Imported Materials Report at one of 16 CDFA border inspection stations across the state. It is a violation of the law if vehicle operators:
- Fail to stop at a CDFA border inspection station
- Willfully avoid a CDFA border inspection station
- Refuse to allow inspection of loads containing empty beverage containers
- Knowingly submit false information
As a result of the California DOJ operations, the following drivers were arrested and booked at the Riverside County Jail: Tim Bristol, 55, of Tucson, Ariz.; Miguel Dominguez-Lopez, 40, of Los Angeles, Calif.; Henry Juarez, 53, of Oxnard, Calif.; Oscar Lopez, 62, of Mesa, Ariz.; Jose Mineros, 45, of Rialto, Calif.; Tony Perez, 21, of Phoenix, Ariz.; Eduardo Pineda Salcedo, 27, of Perris, Calif.; and Eduardo Siordia, 46, of Rancho Cucamonga, Calif.
Material Seized, Amount, and Potential CRV Value:
- Aluminum Used Beverage Containers: 38,890 lbs., $62,224.00
- Plastic Used Beverage Containers, 20,007 lbs., $24,808.68
- Total: 58,897 lbs., $87,032.68
In addition to financial consequences, convictions for recycling fraud and related crimes can carry sentences ranging from six months to three years behind bars.
CalRecycle’s Beverage Container Recycling Program Fraud Prevention Measures
In addition to CalRecycle’s interagency agreements with CA DOJ and CDFA, CalRecycle aggressively combats fraud and illicit payments in the Beverage Container Recycling Program through enhanced precertification training of recycling center owners; probationary reviews of recycling centers; oversight of certified processors; monitoring and tracking of imported materials; risk assessments of daily claims for reimbursement; daily load limits; application of prepayment controls; and post-payment reviews and investigations.Posted on In the Loop by Lance Klug on Apr 30, 2018
Processor Accused of Adjusting Weight Tickets to Defraud CRV Fund
Media Contact: Lance Klug
(916) 341-6293 | Lance.Klug@calrecycle.ca.gov
SACRAMENTO – The California Department of Resources Recycling and Recovery is announcing Grand Jury indictments and subsequent arrests of five people charged with operating a multi-year recycling fraud scheme from the Recycling Services Alliance (RSA) Corporation in Sacramento County. The owner of RSA and four employees are accused of fraudulently processing out-of-state empty beverage containers for California Redemption Value refunds and conspiring to manufacture fraudulent weight tickets to justify state payments and reimbursement claims.
“CalRecycle took decisive action to suspend RSA from the Beverage Container Recycling Program in 2016 as our internal audit and the California Department of Justice’s criminal investigation progressed,” CalRecycle Director Scott Smithline said. “Recycling fraud is a serious crime and CalRecycle will continue to work alongside our law enforcement partners to disrupt these schemes and protect public funds.”
On May 15, 2015, the California Department of Justice’s Recycling Fraud Team launched an investigation into RSA after receiving information the Sacramento facility was illegally receiving out-of-state material from various recycling centers and conspiring to defraud the Beverage Container Recycling Fund. As CDOJ pursued its criminal inquiry, CalRecycle staff worked alongside the California Department of Food and Agriculture’s Division of Measurement Standards and the Sacramento County Agricultural Commissioner’s Weights and Measures Division to investigate the CRV reimbursement claims submitted by RSA and the weight tickets used to support those claims.
On May 11, 2016, while CDOJ Recycling Fraud Team agents continued the criminal investigation, CalRecycle’s legal staff initiated the informal hearing process to suspend RSA’s participation in the CRV program. On May 13, 2016, CalRecycle issued a Notice of Suspension to RSA.
As a result of the investigation, which included search warrants and employee interviews, CDOJ agents and CalRecycle staff uncovered an organized effort to generate inaccurate, altered, or falsified weight tickets to increase CRV reimbursement claims from the fund. CalRecycle concluded that RSA’s CRV claims submitted from January 2012 to December 2015, which totaled $80,331,217.19, were based on fraudulent weight tickets.
Grand Jury proceedings from Dec. 4 through Dec. 7, 2017, resulted in the criminal indictments of five suspects on a total of 166 counts, including grand theft, recycling fraud, perjury, and conspiracy. RSA owner Shengchien Tseng, 49, of Cupertino; weighmaster Maximina Perez, 50, of San Leandro; assistant weighmaster Alejandra Lazaro Martinez, 26, of Hayward; assistant weighmaster Veronica Castillo, 35, of Sacramento; and assistant weighmaster Marlene Davalos-Mendez, 28, of Rocklin, were arrested and booked into the Sacramento County Jail.
The next hearing is scheduled for June 5, 2018, in Sacramento County. The California Attorney General’s Office is prosecuting these cases.
At a Glance: CalRecycle’s Recycling Fraud Prevention Measures
California’s Beverage Container Recycling and Litter Reduction Act incentivizes recycling through a California Redemption Value (CRV) fee paid by California consumers at the time of purchase and refunded upon return of the empty beverage containers to CalRecycle-certified recycling centers. Because the fee is not paid on beverages purchased outside the state, those containers are not eligible for CRV redemption.
In addition to CalRecycle’s interagency agreements with CDOJ and CDFA, CalRecycle aggressively combats fraud and illicit payments through enhanced precertification training of recycling center owners; probationary reviews of recycling centers; oversight of certified processors; monitoring and tracking of imported materials; risk assessment of daily claims for reimbursement; daily load limits; application of prepayment controls; and post-payment reviews and investigations.Posted on In the Loop by Lance Klug on Apr 26, 2018
Today is National Trivia Day, and CalRecycle is celebrating by sharing a few facts about the environment. Pass them along!
- Every year, Californians recycle more than 18 billion bottles and cans.
- Every year, more than 3 billion bottles and cans end up in landfills. You could fill every lane of more than a 700 mile-length of Interstate 5 more than foot deep with all those beverage containers!
- For every 10 pounds of aluminum you recycle, you eliminate 37 pounds of carbon emissions from the air.
- For every 10 pounds of clear plastic water or soda bottles, 3.3 pounds of carbon emissions disappear.
- And although glass bottles are a lot heavier, each 10 pounds recycled still reduces carbon by nearly a pound.
- In a landfill, aluminum cans take 80 to 100 years to break down.
- Plastic bottles hang around as long as 700 years.
- Glass bottles spend 1 million years waiting around to decompose.
- Recycling 1 million laptops saves the energy equivalent to the electricity used by more than 3,500 U.S. homes in a year.
- For every 1 million cell phones we recycle, 35 thousand pounds of copper, 772 pounds of silver, 75 pounds of gold, and 33 pounds of palladium can be recovered.
Posted on In the Loop by TC Clark on Jan 4, 2018
- According to a 2012 study by the Natural Resources Defense Council, the United States wastes 40 percent of the food it produces—more than 20 pounds of food per person every month! Reducing food waste by just 15 percent would be enough to feed more than 25 million Americans every year at a time when 1 in 6 Americans lacks a secure supply of food to their tables.