California Company Ordered to Pay $140M for Recycling Fraud


SEATTLE (Recycling Monster): Sacramento, California-based Recycling Services Alliance Inc. (RSA) and its operations manager have been ordered to pay $140.5 million for defrauding California’s Beverage Container Recycling and Little Reduction Act.

According to the California Department of Resources Recycling and Recovery (CalRecycle), the company is required to pay $86.6 million in restitution and interest for illegally filing claims for California Refund Value (CRV) with fabricated weight tickets. The prior criminal judgments had charged $53.9 million on the company and its operations manager.

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In May 2015, CalRecycle had notified the California Department of Justice (CDOJ), raising suspicions that the facility may be redeeming beverage containers from out of the state. The CDOJ initiated a criminal inquiry, with the assistance of other agencies to uncover how the company fabricated weight tickets for false CRV claims.

CalRecycle Director Rachel Machi Wagoner stated that the decision sends out a strong message to criminals that they will be held accountable for defrauding California’s Beverage Container Recycling Program. CalRecycle and its enforcement partners are committed to investigate recycling frauds and pursue maximum penalties to culprits, Machi added.

The Beverage Container Recycling Program has recycled more than 491 billion bottles since its inception in 1986.

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