<b>Calif. Dept. of Conservation Cites Recycler</b>

Officials from the state of California’s Department of Conservation filed an action seeking more than $2.4 million in penalties, restitution and interest as well as de-certification against Active Recycling, a Los Angeles-based recycling company.

According to the department, Active Recycling violated sections of the Public Resources Code and California Code of Regulations by claiming California Refund Value based on fraudulent records. According to the Los Angeles Times, in November 1998, Active handled 667 pounds. By February 1999, records showed it processed 4,021 pounds. The sharp increase in the number of beverage containers the recycler reported resulted in the state examining many of the receipts from consumers who were reported to have delivered the containers.

The action was filed following a two-year investigation. The company, according to the Department of Conservation, was flagged for the sizable increase in the volume of UBCs on which California Refund Value was claimed.

Residents of California pay a deposit on containers purchased in the state. Consumers redeem the beverage containers for CRV at more than 2,000 state-certified recycling centers throughout the state.

The Department of Conservation is seeking the following from Active Recycling:

·            Repayment of $790,217 the amount paid to Active Recycling based on 38 claims supported by receipts, shipping reports and/or processors reports deemed by the DOC to be inaccurate, altered, falsified or fraudulent

·            Payment of interest in an amount to be determined

·          A civil penalty of $1.657 million

·            Revocation of state-issued certificates allowing Active to pay and receive CRV

·          Cost and fees associated with the case.

The act established the following minimum refund values for every non-refillable beverage container sold or offered for sale in the state: three cents for every single or unpaired beverage container of less than 24 fluid ounces redeemed in a single transaction; five centers for every two beverage containers of less than 24 fluid ounces; and five centers for every single or unpaired beverage container of 24 fluid ounces or larger.

Active Recycling operates one processing facility and five recycling centers.

Errol Segal, president of Active Recycling, declined to comment at the present time due to legal cloud surrounding the company.