Authorities have arrested 11 suspects they say ran a multi-state recycling fraud operation that smuggled empty cans and bottles into California in a scheme that cost the state’s recycling fund more than $2 million. The suspects are accused of bringing cans and bottles from Arizona and Nevada into Los Angeles-area recycling centers to illegally redeem deposits. It’s illegal because consumers in Nevada and Arizona do not pay the 5- or 10-cent California redemption value deposit, so those containers are not eligible for refunds. Investigators found that the beverage containers were being kept in Los Angeles storage facilities before being fraudulently redeemed at 15 local recycling centers. Overall, authorities say California’s Beverage Container Recycling Fund was defrauded of more than $2 million.
Source: Los Angeles Times January 28, 2020 18:33 UTC