E-waste: it's what we get when we are done with our computers, CRT monitors, keyboards and more. The e-waste industry is growing businesses and government agencies realize that they need to not only dispose of their electronic waste safely but to also account for how these sometimes toxic products are handled. One California-based e-waste recycler saw big money in the industry and is being accused of trying to defraud the State of California out of more than $1.6 million.

According to an article in The Sacramento Bee, Joseph Chen, John Chen and Jason Huang with Tung Tai Group submitted payment claims for e-waste that was never recycled and in some cases never even collected.

“Public records show that more than 35 percent of Tung Tai's recycling claims — $1.6 million overall — were rejected by the state over the past two years.” 

That is in just one company and two years of activity. Obviously the industry is ripe for unscrupulous players as more companies focus on their e-waste recycling policies.

Last week John Chen and Jason Huang were arrested. While both have posted bail, an arrest warrant is waiting for Joseph Chen who is currently in China. The Sacramento Bee reports that these three individuals are facing 17 criminal counts. The men claim that they were victims of improper training and messy record keeping.

However, it is important to note that while there may be a few bad apples in every industry, including e-waste, there are also some top-notch players. In the e-waste industry one of these players is CloudBlue. To learn more about e-waste recycling done the right way, read about my tour of a CloudBlue facility here in Arizona.

E-waste fraud can cost millions
After a multi-year investigation, owners of a California e-waste recycling company have been arrested on fraud charges.