SACRAMENTO, CA. - The Department of Justice have arrested five people they believe are illegaly claiming refunds on recyclables that have already been claimed.
The five people arrested are from the Modesto-Turlok area believed to be at the center of a beverage container scam.
Those arrested were Hughson residents Michael Marchant and Leila Arretche, Jonathan Andrino of Turlock, and recycling center owners Robert Nicastro and James Reese of Turlock.
All five were booked into the Stanislaus County Jail on charges of conspiracy, grand theft, and recycling fraud.
Bail set at $250,000 each.
Officials are also searching for another individual suspected of fraud who is identified as Joshua Gray.
If convicted, each individual faces the maximum sentence of six years and four months with a fine of $25,000 and restitution costs.
Authorities have discovered nearly 250,000 pounds of beverage containers after a two-day investigation.
The containers filled 22 trucks and were removed from the ranch and warehouse they were found at and sent to a processing facility.
Investigators also found $125,000 in cash after serving search warrants to 12 locations.
Six recycling centers are now placed on “prepayment controls” by CalRecycle, so they are not reimbursed for CRV claims until the items can be reviewed as legitimate claims.
“There’s a right way and a wrong way to make money in beverage container recycling, and when people do it the wrong way, they can end up in jail,” CalRecycle Director Caroll Mortensen said. “Along with our partners in law enforcement, we take fraud very seriously and will aggressively pursue individuals who steal from the state’s recycling fund.”
Per the release:
California’s bottle bill provides an incentive for beverage container recycling by establishing a CRV of 5 cents for containers less than 24 ounces and 10 cents for containers 24 ounces or larger. CalRecycle is undertaking a major and multipronged effort to protect the recycling fund, including new approaches to curb fraud. Much of the emphasis is on preventing fraud before it occurs, such as enhanced training of recycling center owners and increased scrutiny of payment claims.
CalRecycle is the state's leading authority on recycling, waste reduction, and product reuse. CalRecycle plays an important role in the stewardship of California's vast resources and promotes innovation in technology to encourage economic and environmental sustainability. For more information, visit www.calrecycle.ca.gov.