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Report: Recycling fraud costs California tens of millions of dollars

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Updated: 10/07/2012 12:11 pm

LOS ANGELES (AP) — Rampant fraud within California's recycling redemption program is costing the state millions, as scammers drive trucks full of cans across the border from Nevada and Arizona to collect nickels on deposits that were never paid.

The Los Angeles Times reports in addition California recyclers are claiming redemptions for the same containers several times over, or for containers that never existed.

Government officials recently estimated the fraud at $40 million a year, and an industry expert told the newspaper it could exceed $200 million. The Times says the state's $1.1 billion recycling fund paid out $100 million more in expenses last year than it took in from deposits and other sources.

Gov. Jerry Brown signed a law last month that will help identify people bringing cans into California.

©2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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