The Department of Resources Recycling and Recovery (CalRecycle) has reached a $1.74 million settlement agreement with San Leandro-based Alco Iron & Metal Co.
An extensive investigation revealed the beverage container and scrap metal processing business claimed refunds on California Redemption Value beverage containers it later sold to a company that redeemed them a second time. As a result, the state refunded CRV twice on the same beverage containers.
Alco has been under investigation since 2011, after CalRecycle received documents obtained during an investigation by the California Department of Justice. During its own investigation that followed, CalRecycle reviewed Alco transactions that occurred between December 2009 and February 2011. During that time, records show Alco processed 2.23 million pounds of aluminum beverage containers and 2.82 million pounds of plastic containers, resulting in $6.6 million in payments from the state’s beverage container recycling fund. Instead of shipping all of the previously redeemed materials to legitimate end users as required by law, Alco resold 487,926 pounds of the aluminum and 496,121 pounds of the plastic beverage containers to a non-certified recycler, Wan Best Trading of Daly City.
As part of the settlement, Alco agreed to pay $1.54 million resulting from CalRecycle’s payment on the previously redeemed materials. Alco will also pay $21,452 in restitution and interest for other violations discovered during CalRecycle’s investigation, including splitting loads of aluminum in order to circumvent daily load limits and filing claims on ineligible material (including out-of-state containers). When the $13,800 in penalties and $174,200 cost of the investigation are factored in, the amount Alco agreed to pay under the terms of this agreement is $1,744,564.
Alco facilities in San Leandro, Vallejo, and Stockton will retain their CRV program certification on a Last Chance Reinstatement basis for the next five years. Any illegal or fraudulent claims or conduct committed by Alco will result in immediate certification revocation.
The operators of Wan Best Trading are believed to have fled to China.
Published in the May 2015 Edition of American Recycler News
