State Recycling Program Defrauded for Millions

Updated: May 22, 2018

Five people at a Sacramento recycling center have been arrested for allegedly taking out-of-state material and creating fraudulent weight tickets to defraud the state out of $80.3 million.

A grand jury indictment announced April 19 by Attorney General Xavier Becerra contains criminal charges against Recycling Services Alliance (RSA), its owner and four of its employees. All five defendants have been arrested and are facing 166 counts of grand theft, recycling fraud, perjury and conspiracy.

Over a three-year period from 2012 to 2015, California Department of Resources Recycling and Recovery allegedly paid $80,331,217.19 to RSA based upon fraudulent weight tickets. (Source: The Sacramento Bee, April 19.)

California Tax Foundation   |   1215 K Street, Sacramento, CA 95814   |   916.441.0490   |