Two Arizona residents were arrested this week following an ongoing investigation into a CalRecycle fraud scheme involving bottle recycling.
The scam, which was estimated at more than $10 million, involved transporting over tons of snow from Arizona recycling materials to be traded in Los Angeles.
The defendants, arrested on March 8 in Phoenix and Mesa, “are Arizona businessmen who will be extradited to California for prosecution,” according to the statement sent by the California prosecutor’s office.
In addition to the suspects’ arrest, an order was issued to “freeze more than $800,000 from the suspects’ bank accounts.”
California Attorney General Rob Bonta said in a statement that “The California Redemption Program is an important tool in our efforts to encourage recycling, reduce waste and fight climate change. We will continue to work with our law enforcement and state partners to protect California programs and resources.”
California’s recycling program known as CRV allows beverage bottles to be redeemed for a fee of 5 to 10 cents. Consumers subsidize the program each time they buy products in bottles or cans that are labeled CRV.
However, only California products can be redeemed under the program.
The Justice Department opened an investigation in 2021 into the fraud scheme involving recycled materials imported from Arizona because the state does not have a program to buy back the bottles and cans.