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.
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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.
