Dive Brief:

• The Department of Resources and Recovery (CalRecycle), a recycling and waste management agency in California, announced that it settled a beverage case with a company attempting to defraud the state-run beverage deposit program.
• Alco Metal & Iron Company agreed to pay $1.74 million to CalRecycle for its role in a redemption scheme; the company will be granted the ability to continue to participate in the state’s deposit program on a "last chance" basis.
• It was alleged from December 2009 to February 2011, Alco redeemed over 5 million pounds of aluminum cans and plastic bottles; Alco then resold bottles to Wan Best Trading and the recyclables were redeemed for a second time. Wan Best's operators are thought to have fled to China.

Dive Insight:

California has experienced issues with fraud within its California Redemption Value (CRV) program for years. Widespread fraud had left the redemption program hemorrhaging money. In November 2014, it was announced that costs exceeded revenue by over $100 million in the last three out of four years.

In 2012, a bill was signed into law to aid in the identification of those abusing the program via the illegal transportation of containers across state lines. Once the recyclables make it to California, the materials are exchanged for money. In December 2013, daily payout limits were introduced as a way to curb abuse.