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Subject:  Green, green, it's green they say Date:  10/8/2012  6:16 PM
Author:  fleg9bo Number:  647731 of 744139

Rampant recycling fraud is draining California cash

http://www.latimes.com/news/local/la-me-can-fraud-20121007,0...

California's generous recycling redemption program has led to rampant fraud. Crafty entrepreneurs are driving semi-trailers full of cans from Nevada or Arizona, which don't have deposit laws, across the border and transforming their cargo into truckfuls of nickels. In addition, recyclers inside the state are claiming redemptions for the same containers several times over, or for containers that never existed.

The illicit trade is draining the state's $1.1-billion recycling fund. Government officials recently estimated the fraud at $40 million a year, and an industry expert said it could exceed $200 million. It's one reason the strapped fund paid out $100 million more in expenses last year than it took in from deposits and other sources.

Only products sold in California are eligible. But a can is a can — and many recycling centers in California aren't that interested in where they come from.
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NEWMAN: Wait a minute. You mean you get five cents here, and ten cents there. You could round up bottles here and run 'em out to Michigan for the difference.

KRAMER: No, it doesn't work.

NEWMAN: What d'you mean it doesn't work? You get enough bottles together...

KRAMER: Yeah, you overload your inventory and you blow your margins on gasoline. Trust me, it doesn't work.

JERRY: (re-entering) Hey, you're not talking that Michigan deposit bottle scam again, are you?

KRAMER: No, no, I'm off that.

NEWMAN: You tried it?

KRAMER: Oh yeah. Every which way. Couldn't crunch the numbers. It drove me crazy.

--fleg
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