Five people were charged with defrauding the California’s recycling program out of $80.3 million, officials announced on Thursday. It’s the largest alleged fraud scheme in the program’s history.
The owner and four employees of Recycling Services Alliance Corporation accepted recyclables purchased in other states and faked the paperwork, claims California Attorney General Xavier Becerra. Only eligible bottles and cans sold in California are eligible for the funds.
Company owner Shengchien Tseng, 49, of Cupertino, as well as employees Maximina Perez, 50, of San Leandro; Alejandra Lazaro-Martinez, 26, of Hayward; Veronica Castillo, 35, of Sacramento; and Marlene Davalos-Mendez, 28, of Rocklin, were indicted in December on 166 counts including grand theft, recycling fraud, perjury and conspiracy.
“In California, those who criminally misuse public programs for personal gain will be held accountable. Recycling Services Alliance (RSA) Corporation owner Shengchien Tseng and employees Maximina Perez, Alejandra Lazaro-Martinez, Veronica Castillo, and Marlene Davalos-Mendez are going to learn that the hard way,” Becerra said in a statement. “The Beverage Container Recycling Program is a public program that we can be proud of – it betters our environment and our society.”
