31 Arrested For Fraudulent Recycling
Wednesday, May 5, 2010
SAN DIEGO The owner of a San Diego recycling center was one of 31 people arrested for claiming container-deposit money on bottles and cans trucked in from other states.
Californians pay a five or ten-cent deposit on bottles and cans, which is redeemed when containers are returned to a recycling center. But investigators with the state attorney general say members of three fraud rings were bringing containers in from Nevada and Arizona, claiming they were bought in California. Mark Oldfield, with CalRecycle, said the suspects are accused of turning in millions of cans and making a good profit.
"They can bring in containers they brought in very cheap from these other states and come to California and claim the California refund value on them," he said. "But those containers from out of state are not eligible because no deposit was ever paid on them."
Neither Nevada nor Arizona have a container deposit law. One of the suspects arrested ran ACE Recycler in San Diego. Investigators claim $3.5 million in deposit funds were fraudulently collected.