Home Science & Research Family Who Pocketed $7.6 Million By Recycling In California Gets Taught Costly...

Family Who Pocketed $7.6 Million By Recycling In California Gets Taught Costly Lesson

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Environmentalism has made great strides in the last twenty years. Humans have recognized negative factors we once attributed to the environment, like Chlorofluorocarbons (CFCs) and fossil fuels, due to their impact on the Ozone layer and global warming.

Thankfully, since then, we’ve banned CFCs and moved away from fossil fuels. With such great strides to better the world we call home, recycling programs have also started giving out incentives to help residents do their part in helping the planet. However, these programs seem to be being abused, which could spell trouble keeping incentives as good as they are currently.

California’s Incentives To Recycling

California residents can enjoy getting money back on eligible cans and plastics. By law, any individual can take any recyclables considered California Redemption Value containers to a recycling center; they must be given either 5 or 10 cents back, depending on the container. Unfortunately, these programs can be taken advantage of and have been before.

The program aims to create a less polluted environment and incentivize California residents to recycle more, doing their part to help save the planet. Despite this, a family took advantage of the program, creating implications for the future of recycling services.

No Similar Programs In Other States

Grendelkhan – Wikimedia Commons

The family, who live in Arizona, does not have a similar program with incentives in their state. Arizona did have more recycling programs because China bought a lot of recyclable waste.

Unfortunately, in 2018, the country banned the import of foreign recyclables. Arizona isn’t the only state to have suffered from this.

Even though it is clearly outlined that all eligible recyclables must come from the state of California, the family moved across state lines to take advantage of California Redemption Value containers. This is where the problem started.

The Department of Justice Steps In

Wil Fyfordy – Wikimedia Commons

California’s Department of Justice audited several recycling centers in the southern part of the state. They found over 1 million dollars in cash and many recyclables brought over illegally from different states.

The family was charged with defrauding the state of California’s recycling program after finding that they had moved nearly 200 tons of plastic bottles and aluminum cans from their home state in Arizona to California to take advantage of the system.

Defrauding 7.6 Million

Levi Clancy – Wikimedia Commons

The family has defrauded approximately 7.6 million dollars from the program. The bail set for the family was approximately $240,000, with the average of individual members being $30,000.

Because the bottles and cans look identical between states, it is difficult to catch this smuggling before it’s too late. Usually, the defrauding is only noticed months or years after it happens, so people are still willing to take advantage of the program.

An Easy Payout

Wil540 art – Wikimedia Commons

Six more people were arrested in March 2022 following investigations into two business owners moving tons of recyclables to California recycling centers.

This goes even further back, as five individuals were also caught defrauding the program of over 80 million dollars from 2012 to 2015.

With the potential for an easy payout, coupled with the lack of a similar program in other states, people will flock to the Golden State to engage in illegal activity and become part of the problem.

Implications To The Future Of The Program

Wil Fyfordy – Wikimedia Commons

The system is easily taken advantage of, and perpetrators get away with the crime for a long time until action is taken. This has implications for what needs to change to prevent this from happening. The California Redemption Value incentivizes citizens to recycle more, and with over 1200 centers across the state, it seems easier than ever to contribute to environmentalism.

But this will only be a surety as long as the recycling programs can stay ahead of the fraud.

Clamping Down

Wikimedia Commons

The last two big defrauders alone defrauded the recycling programs of over 150 million dollars, so the persisting problem hasn’t gone unnoticed.

The California Department of Justice is looking for ways to clamp down and make it a not-so-easy payday for those willing to break the law. They have started a Recycle Fraud Program to try to stop more fraud and stop future lawbreakers before they can even act.

Successful Cases

Grendelkhan – Wikimedia Commons

Thankfully, the California Department of Resources Recycling and Recovery has convicted over 90 cases of recycling fraud from 2010 to 2019.

Fewer people are taking advantage of the programs for profit, so sincere citizens should be able to use the recycling systems afforded to them by their state. However, with all states not having equal program incentives, people could feel short-changed and look to recycle for the wrong reasons.  

Up For Debate

Wil Fyfordy – Wikimedia Commons

States with worse recycling practices could be due to less accessible facilities and programs with fewer incentives. But whether or not equal programs across states would increase recycling and reduce fraud is up for debate.

California citizens pay 1.5 billion dollars a year on deposits for their drinks and only get about half of it back when its recycled.

Sources:

Chlorofluorocarbons and Ozone Depletion

Family Charged in $7.6 Million Bottle-and-Can Recycling Scheme

Changes to the Beverage Container Recycling Program

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