California family charged in $7.6M beverage container recycling scheme

Eight family members who run recycling centers in Riverside County, California, face felony charges in connection to a $7.6 million multistate recycling fraud investigation. Agents believe the suspects illegally smuggled 178 tons of empty beverage containers from Arizona into Riverside County to defraud California’s Beverage Container Recycling Program, California Department of Justice (DOJ) says.  

“California will not tolerate fraud against our recycling deposit system that has kept nearly a half-trillion bottles and cans from being littered or landfilled in our state,” says CalRecycle Director Rachel Machi Wagoner. “ CalRecycle’s partnership with the California Department of Justice is working to stop criminals and protect funds that belong to Californians.”  

"California's recycling program is funded by consumers and helps protect our environment and our communities," says California Attorney General Rob Bonta. "Those who try to undermine its integrity through criminal operations will be held accountable. I am grateful to my team of diligent investigators and to our partners at CalRecycle for uncovering this fraud scheme and for working together to protect funds that belong to California consumers who recycle."  

In 2022, DOJ launched an investigation into several Riverside County recycling centers. During an eight-month period, agents found the operators illegally redeemed $7.6 million in aluminum cans and plastic bottles smuggled from Arizona to sites in Riverside County.  

DOJ's Bureau of Investigation Recycle Fraud Team has filed charges against the eight defendants and served search warrants on six locations, which resulted in the seizure of $1.06 million and additional material.   

All suspects will be booked at the Riverside County Sheriff’s Department Jail and are presumed innocent unless or until proven guilty, DOJ says. 

CalRecycle oversees California’s Beverage Container Recycling Program that incentivizes recycling at privately owned centers with a 5- or 10-cent return on eligible beverage containers. Because consumers outside of California do not pay California Redemption Value (CRV) deposits on beverage purchases, those containers are not eligible for CRV redemption.