SAN FRANCISCO — 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, state officials said Monday.
The suspects allegedly brought 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.
The suspects were charged with felony recycling fraud, conspiracy and grand theft after a four-month investigation by the California Department of Justice and CalRecycle.
Investigators found that the beverage containers were being kept in Los Angeles storage facilities before being fraudulently redeemed at 15 local recycling centers.
