Nearly a dozen people were recently arrested in California for allegedly trying to defraud California’s container storage system.
An initial investigation uncovered what was described as “an undocumented Los Angeles-area [facility] suspected of illegally collecting, storing and redeeming beverage containers out of state,” said the State Department of Recycling and Resource Recovery. Later, authorities discovered a second undocumented storage facility.
The alleged fraud included the “bulk shipment” of containers from Las Vegas to 12 recycling centers in the Los Angeles area, the state said.
“Consumers in other states do not pay CRV [California rebate value] on their beverage purchases, so any CRV redemption of materials out of state is theft and fraud,” CalRecycle Director Scott Smithline said in a statement. .
Search warrants executed in September led to the seizure of 14,940 pounds of empty plastic containers and 10,978 pounds of aluminum with a combined CRV of nearly $ 37,000. Eight people were arrested in this case.
Authorities believe the plan allegedly duped California out of “approximately $ 5 million,” the state said.
A subsequent checkpoint in Needles, California, later in September, resulted in the arrest of two drivers in separate incidents. They are suspected of transporting containers out of state to California. Those arrests resulted in the discovery of 9,224 pounds of empty plastic bottles and 10,456 pounds of aluminum with a combined trade-in value of $ 28,665, the state said.
