Golden State Today

California Attorney General Rob Bonta, in collaboration with CalRecycle Director Rachel Machi Wagoner, has taken a firm stance against recycling fraud by holding accountable the managers of Recycling Services Alliance, Inc. (RSA) in Sacramento County. The five managers involved in a recycling fraud scheme have been ordered to pay a total of $140.5 million in criminal restitution and administrative fines to replenish the funds stolen from the California Refund Value (CRV) Fund.

Attorney General Rob Bonta emphasized the importance of protecting California's recycling program, stating, "California's recycling program is funded by consumers, and helps protect our environment and our communities. Those who try to undermine its integrity through criminal operations will be held accountable."

The investigation into RSA, initiated by the California Department of Justice's Recycle Fraud Team, uncovered manipulations of scales at recycling facilities and fabricated weight tickets for CRV claims over almost four years. This led to indictments against the managers of RSA, namely Shengchien Tseng, Maxamina Perez, Marlene Davalos-Mendez, Estella Veronica Castillo, and Alexandra Martinez.

In addition to the criminal restitution of $53.9 million, the defendants were also ordered to pay $86.6 million for administrative violations. A final $34 million administrative judgment was later imposed, bringing the total restitution and fines to $140.5 million. These actions aim to safeguard funds belonging to California consumers who actively participate in recycling initiatives.

The Recycle Fraud Program, led by the DOJ's Recycle Fraud Team in conjunction with CalRecycle, plays a crucial role in identifying and prosecuting organized criminal groups involved in defrauding the CRV fund. By targeting large-scale fraud against California's recycling program, the collaborative efforts have resulted in the arrest and prosecution of individuals engaged in fraudulent activities.

The California Beverage Container Recycling Program administered by CalRecycle relies on the CRV fee to incentivize recycling and promote environmental sustainability. Consumers in California support the program by purchasing CRV-eligible containers, which contribute to the recycling ecosystem within the state.

As the legal proceedings unfold, a copy of the final agency decision by CalRecycle and the Grand Jury Indictment are available for public access, underscoring the transparency and accountability in addressing recycling fraud within the state.