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 trucks full 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.
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