Apr 7 - Justice Department Nabs Six for Recycling Fraud

Six people were arrested in two separate cases for illegally redeeming CRV beverage containers from out of state.

Agents estimate the fraud to be worth roughly $425,000.

"Fraud against the Beverage Container Recycling Fund is theft from the people of California," CalRecycle Director Caroll Mortensen said.

When a consumer purchases a covered beverage in California, the CRV of 5 cents or 10 cents is added to the price of the beverage. That nickel or dime is placed in a fund that consumers can redeem when they recycle the container.

Out of state containers are not eligible for CRV so any any redemption of out of state containers constitutes a criminal act. Illegal redemption also hurts the solvency of the bottle bill fund that has successfully lead to recycling of nearly 80% of all covered containers. Thanks to CAW-sponsored bill AB 1933 (Gordon), CalRecycle has been given more authority and tools to help combat out-of-state fraud.

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