Prosecutors: Family Pockets Millions In Interstate Recycling Fraud Scheme
In a seventh-season episode of “Seinfeld,” the characters of Kramer and Newman hatch a plan to cross state lines in order to get rich from Michigan’s higher recycling rebates.
While that ploy inevitably fell apart, eight members of one Arizona family allegedly staged their own scheme and were able to rake in roughly $7.6 million before authorities caught up with them.
According to authorities, the suspects brought 178 tons of bottles and cans from their home state into Riverside County, California, over a period of eight months.
It might not sound like a serious crime, but California’s CalRecycle program specifically forbids the recycling of any out-of-state materials in exchange for the up to 10 cents offered for each eligible container. Arizona does not offer a comparable recycling incentive.
The California Department of Justice began investigating the matter in October. In a statement, the agency noted that its Bureau of Investigation Recycle Fraud Team filed multiple charges against the relatives.
“Its agents also served search warrants on six locations, which resulted in the seizure of $1,061,499 and additional illegal imported beverage containers,” the press release added. “All suspects will be booked at the Riverside County Sheriff’s Department Jail.”
California Attorney General Rob Bonta also addressed the case, touting the state’s recycling program as one that is “funded by consumers and helps protect our environment and our communities” and promising to hold those who attempt to defraud it accountable.
“I am grateful to my team of diligent investigators, and to our partners at CalRecycle, for uncovering this fraud scheme and for working together to protect funds that belong to California consumers who recycle,” he added.
Rachel Machi Wagoner, the director of CalRecycle, echoed Bonta’s statement.
“California will not tolerate fraud against our recycling deposit system that has kept nearly a half-trillion bottles and cans from being littered or landfilled in our state,” she said. “CalRecycle’s partnership with the California Department of Justice is working to stop criminals and protect funds that belong to Californians.”
A similar case last year led to criminal charges against six individuals accused of defrauding the program of more than $10 million.
If convicted, the suspects in this case could face up to six years behind bars.
