Scrap Recycling Compliance Blog

This blog will focus on scrap metal compliance and related issues to the scrap metal industry.

DOJ Arrest 5 for Recycling Fraud

DOJ Arrest 5 for Recycling Fraud

doj arrest 5 recycling fraudIn September and October 2014 5 were arrested on felony charges for frauding the state of California, illegally claiming California Redemption Value refunds on beverage containers that had already been redeemed.

They face, if convicted, six years and four months in jail and $25,000 besides paying back the money they allegedly stole.

All of this happened in California's central valley Turlock and Modesto areas with 12 warrants being served by the Department of Justice's Sacramento Recycle Fraud Team. 

$125,00 cash was seized and bail was set at $250,000 each.

Nearly 250,000 pounds via 22 truckloads of beverage containers were also removed from the Ranch and warehouse.

California's bottle bill is a cash redemption program that allows residents who purchase beverage containers to reclaim the $0.05 that paid when the beverage was purchased and $.010 on larger beverage containers.  California's bottle beverage program has been teetering on insolvency for years now and fraudulent cases like the ones mentioned above have been the target of investigators in recent years.

It's become evident that recycling yard owners need to get into the modern age, get computerized and start playing by the rules. The days of using paper receipts and logs are behind us and owners need to be pushed into the 21st Century.

PopScrap.com Inc., a California corporation had developed a smartphone app named the "Weigh & Pay" app for Android devices.

Over the last 2 years PopScrap has developed a relationship with California largest bottle beverage recycling company, RePlanet has over 750+ locations in California. http://replanetusa.com/ 

Recently RePlanet has released the software to its commercial locations who are using the Android app on Samsung tablets and Bluetooth printers enabling its users to electronically create DR6 reports along with time cards and dispatching.

Read the full story on CalRecycle website...

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