SACRAMENTO, Calif. — Recycling Services Alliance Inc. (RSA) and its operations manager were ordered Tuesday to pay $140.5 million total in penalties for defrauding California’s Beverage Container Recycling program, state officials say.
CalRecycle announced it's requiring RSA to pay $86.6 million in restitution and interest for illegally filing claims for the California refund value (CRV) on bottles and cans with thousands of fabricated weight tickets.
Prior criminal judgments against RSA and its operations manager, Maximina Perez, required an additional $53.9 million in payments to reach the $140.5 million total, according to a CalRecycle news release.
Perez was sentenced in September 2021 to seven years in prison, which could be suspended if she successfully completes five years of probation, according to Attorney General Rob Bonta’s office.
“This decision sends a message that criminals are held accountable for defrauding California’s Beverage Container Recycling program, which has kept 491 billion bottles and cans out of our streets and waterways,” said CalRecycle director Rachel Machi Wagoner in a statement.
Wagoner said CalRecycle and its enforcement partners aggressively investigate recycling fraud and pursue the maximum penalties to protect Californians’ money.
The recycling program began in 1986, according to CalRecycle. The state department said it aims to incentivize Californians to recycle by refunding a fee paid at purchase when beverage containers return to recycling centers or certain retailers.
CalRecycle safeguards the program through agreements with the California Department of Justice (DOJ) and the California Department of Food and Agriculture to fight recycling fraud with 377 arrests since 2010, the release said.
Case background
CalRecycle notified the DOJ in May 2015 that the Sacramento RSA facility may be illegally redeeming out-of-state beverage containers, the release said.
While the DOJ pursued a criminal inquiry, CalRecycle said it completed an RSA claims analysis and suspended its business certification.
CalRecycle investigators then worked with the DOJ, the food and agriculture department and the Sacramento County agricultural commissioner to explore how RSA fabricated weight tickets for CRV claims.
RSA and its operations manager were previously convicted and ordered to pay $53.9 million in damages; they were ordered to pay $86.6 million in administrative judgments Tuesday.
Combined administrative and criminal judgments total $140.5 million, according to CalRecycle.
People can report suspected recycling fraud or bottle redemption violations to CalRecycle by calling 1-866-226-5623 or via email at complaints@calrecycle.ca.gov.
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