Dozens Arrested for CRV Fraud in California

California Attorney General Edmund Brown Jr. announced that special agents with the Department of Justice, working closely with the Department of Resources Recycling and Recovery (CalRecycle), have shut down three beverage-container recycling fraud rings in which people trucked millions of cans and bottles from Arizona and Nevada to illegally claim California Redemption Value refunds.

It is estimated that the fraud rings robbed the state of more than $3.5 million used to operate the state's recycling program. Thirty-one individuals have been arrested in connection with the fraudulent activities.

"These bands of thieves have been caught red-handed running tons of cans and bottles from across the state's border and fraudulently collecting money through the California Redemption Value program," says Attorney General Brown. "Defrauding the state's recycling program is not a way to make easy money. We are looking for you and you will be caught."

Conviction of redemption fraud and the importation of recyclable materials is a felony if the redemption amount is over $400.

"Recycling fraud is a crime against California consumers and we take it very seriously," says Margo Reid Brown, director of CalRecycle. "Our inspectors work closely with state and local law enforcement to root out and prosecute criminals who steal the money used to repay Californians and support our state's recycling programs. These arrests are evidence that recycling fraud will not be tolerated."

To combat recycling fraud, CalRecycle staff visit major recycling processors to inspect loads of beverage containers delivered for CRV reimbursement. Last year, the department removed 25 recycling centers from the state program for submitting fraudulent claims. CalRecycle refers recycling fraud cases to the Department of Justice for criminal investigation and prosecution.

The investigations were conducted by the Attorney General's Division of Law Enforcement/Bureau of Investigation and Intelligence (DLE-BII) Major Crimes Team and CalRecycle, with assistance from many other law enforcement agencies including the offices of the San Bernardino and Riverside County Sheriffs, the Riverside County District Attorney's Office, the California Highway Patrol, Immigration and Customs Enforcement, the United States Marshals Service and other Dept. of Justice enforcement teams.