A San Jose business has pleaded no contest to 13 felony charges and become the first company in California to be successfully prosecuted in connection with an e-waste fraud scheme, state officials said Saturday.
Tung Tai Group Inc., of San Jose, its executive vice president John Chen and yard supervisor Jason Huang entered the plea earlier this month in Santa Clara County Superior Court as part of a plea agreement negotiated with the state Attorney General's Office.
The charges included forgery, false document, filing false payment claims with the state and illegal storage of hazardous waste.
The defendants tried to collect more than $1 million from the state by falsely reporting the collection of millions of pounds of electronic waste for recycling. The fraud was uncovered by the Department of Toxic Substances Control after a review of records uncovered inflated records of collected e-waste being reported to the state.
Tung Tai and the defendants agreed to withdraw as certified recyclers and collectors and stop all recycling activities. In addition, both defendants are required to perform 100 hours of community service and pay $125,000.
"The state is dedicated to rooting out fraud and holding those accountable who try to steal from it," said Department of Toxic Substances Control Director Debbie Raphael.
— Bay City News