Business Owners Lose Millions In Plastic Recycling Scam

LOS ANGELES (CBS) — It turns out “saving the earth” may be costing local businesses millions of dollars.

KNX 1070’s Ron Kilgore reports on a recycling scam that preys on the pallets of warehouses in the City of Industry.

Los Angeles County Sheriff’s detectives on Wednesday unveiled warehouses full of stolen plastic containers with trademarked merchandise they have recovered in the past year, representing an estimated $10 million in losses.

“These recyclers are claiming their helping us by recycling, but what they’re really doing is buying stolen merchandise, grinding it up, and selling it back to the manufacturers that make our milk cases,” said Amos Degroat of Rockview Dairy, just one of the many local business victimized in the scheme.

Investigators said they have several cases pending against Southland recyclers.

While the thieves typically end up getting a fraction of the actual value of the cases, detectives warned the problem has gotten more widespread in recent months.

  • John

    Wow, very confusing story… and “These recyclers are claiming THEIR helping us by recycling…”

    There goes the notorious CBS print-before-proof-reading

    • Mr . Time

      I wonder how many plastic company’s have ( HACKERS ) working for them ? Like everybody ( WILL ) Dump their CREDIT CARDS when there ( IS ) a HACK ATTACK true YAHOO , or GOOGLE , or the countless other WEB sights., On people’s on line banking sights . This some thing the FED’S should keep in mind., The up and down ( WALL STREET MARKET FLOW .)

      • Jon S

        That is a really good question, for people who are insane and can imagine a way to link Google, Yahoo, and hackers, to a story about grinding up plastic. Good point!

  • Jon S

    So confusing. How could buying stolen merchandise and grinding it up be more profitable than selling stolen merchandise? This article makes no sense.

    I have no idea what this article is about. It jumps from pallets to trademarked merchandise, to recycling. In the end I get that Amos Degroat doesn’t know about their, there, and they’re.

  • AH

    If Amos said the quote out loud then it’s really the reporter making Amos look like an idiot with his use of “their” instead of “they’re”.
    Poor Amos

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