Rampant recycling fraud is draining California cash
Fraud rings bring cans and bottles from other states and illicitly 'redeem' deposits that were never paid. And some private recycling centers might claim bigger reimbursements than they deserve.
Just over 8.5 billion recyclable cans were sold in California last year. The number redeemed for a nickel under California's recycling law: 8.3 billion.
That's a return rate of nearly 100%.
That kind of success isn't just impressive, it's unbelievable. But the recycling rate for certain plastic containers was even higher: 104%.
California's generous recycling redemption program has led to rampant fraud. Crafty entrepreneurs are driving semi-trailers full of cans from Nevada or Arizona, which don't have deposit laws, across the border and transforming their cargo into truckfuls of nickels. In addition, recyclers inside the state are claiming redemptions for the same containers several times over, or for containers that never existed.
The illicit trade is draining the state's $1.1-billion recycling fund. Government officials recently estimated the fraud at $40 million a year, and an industry expert said it could exceed $200 million. It's one reason the strapped fund paid out $100 million more in expenses last year than it took in from deposits and other sources.
"The law says California has to make it easy to recycle … so anyone with a devious mind, it's so easy, they can just go right in," said Los Angeles County Sheriff's Deputy Dave Chapman, who has investigated fraud rings in recent months....MORE
The Bottle Deposit was a two part episode from Seinfeld's seventh season:
From Californians Against Waste, April 2012:
...“If I could, I would name it the Newman-Kramer Deterrence Act of 2012,” Gordon said in a telephone interview. “I’m not sure, candidly, that that was my initial intent. I was just kind of having fun and it was a good laugh in the office. But if it does bring some attention to what is an issue, hey, great.”...
