5 indicted in alleged $80 million California recycling fraud

SACRAMENTO, Calif. (AP) — California has charged five people with defrauding the state’s recycling program out of $80 million dollars — the largest fraud scheme in the program’s history.

State Attorney General Xavier Becerra announced Thursday that the owner and four employees of Recycling Services Alliance Corporation were charged in December with defrauding the state’s beverage container recycling program.

The California Department of Resources Recycling and Recovery says it’s the largest alleged fraud involving the 5- or 10-cent deposits that consumers pay on certain beverage containers.

Consumers can recoup the deposits by turning in the containers at recycling centers.

The indictment alleges that the Sacramento County company illegally accepted containers from outside California and faked the paperwork.

None of the defendants have entered pleas. They are awaiting June court appearances.