$1.8 Million Settlement in Recycling Fraud Case
A Los Angeles-area recycling business will pay $1.8 million in restitution to Californiaâ€™s beverage container recycling program as part of a settlement agreement resulting from illegal claims for refunds on out-of-state bottles and cans.
As part of the agreement with the CalRecycle, Action Sales and Metal and owner Bruce Falk will be barred from future participation in the program. CalRecycle received $845,000 of the settlement when the agreement was signed; the outstanding $955,000, seized from the business by law enforcement during two separate investigations, will be released to CalRecycle within 30 days.
The settlement comes on the heels of an investigation by CalRecycle, the California Department of Justice, and the Los Angeles County Sheriffâ€™s Department.
CalRecycle is undertaking a major effort to curb recycling fraud. New regulations now require importers of out-of-state containers to enter California through California Department of Food and Agriculture agricultural inspection stations, declare they are importing empty beverage container materials, complete an Imported Material Report form and submit to an inspection by CDFA agents.
Photo Credit: empty glass bottles via Shutterstock
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