California waste company Recycling Services Alliance, Inc. (RSA) and its operations manager are on the hook for $140.5 million for a fraud scheme.
CalRecycle said this week that the company and its manager have to pay restitution and penalties for defrauding California’s state rebate program for recycled bottles and cans.
Driving the news: CalRecycle found that RSA had illegally filed claims for California Refund Value (CRV) on bottles and cans with thousands of fabricated weight tickets.
- RSA has to pay $86.6 million for its illegal CRV scheme and an additional $53.9 million for a grand jury indictment.
- The agency had notified the state Dept. of Justice in 2015 that the RSA facility in Sacramento may have been redeeming out-of-state beverage containers.
- Upon analyzing RSA’s claims for the program, CalRecycle suspended the recyclers’ certification to do business, leading to the fines and penalties issued this week.
