Executive Recycling fined $4.5 million; CEO sentenced to prison

Jeremy Carroll
WASTE & RECYCLING NEWS

Published: July 24, 2013 11:33 am ET
Updated: July 24, 2013 11:35 am ET

Related to this story

Topics Sustainability, Legal

Executive Recycling Inc. was fined $4.5 million and its CEO was sentenced to 30 months in prison after the government alleged the company told customers it was recycling electronics domestically while actually sending it overseas to developing countries.

U.S. District Court Judge William J. Martinez sentenced the company and CEO Brandon Richter July 23, one week after handing former vice president of operations Tor Olson a 14-month prison sentence.

Richter and Olson were convicted of various mail and wire fraud charges along with environmental crimes.

The company regularly exported e-waste, including cathode ray tubes outside of the United States, including to China, the government alleged. The company appeared as the exporter of record in more than 300 exports from the United States between 2005 and 2008, the U.S. Attorney's Office said. About 160 of those cargo containers contained a total of more than 100,000 CRTs, the government alleged.

The Englewood, Colo.-based company was doing all the exporting while telling customers it was handling all the items domestically. Eventually, with the help of the Basel Action Network, "60 Minutes" aired a segment on the company, exposing its practices.

In addition to Richter's 30-month prison sentence, he was ordered to pay a $7,500 fine and $70,144 in restitution. The judge also ordered a $142,241 asset forfeiture in the case.

Olson remains free on bond while his appeal is moving forward. Richter was given 15 days to report to jail, but immediately appealed the conviction and sentence. His attorney is now asking he remain free on bond while the appeal is being processed, according to court documents.

"The defendants in this case not only caused actual harm to the environment by shipping electronic waste overseas for dumping, they defrauded their customers by falsely claiming to be disposing of that waste in an environmentally safe way," said U.S. Attorney John Walsh in a statement.

The sentence and fine show that there are no shortcuts in following U.S. export laws, Kumar Kibble, special agent in charge of Homeland Security Investigations said in a statement.

"This CEO also intentionally deceived the public for years by falsely advertising an environmentally friendly recycling business plan within the United States," Kibble said. "Instead, he regularly exported tons of obsolete and discarded electronic equipment containing toxic materials to third-world countries, and took actions to illegally hide these practices from government officials."


Comments

Executive Recycling fined $4.5 million; CEO sentenced to prison

Jeremy Carroll
WASTE & RECYCLING NEWS

Published: July 24, 2013 11:33 am ET
Updated: July 24, 2013 11:35 am ET

Post Your Comments


Back to story


More stories

Image

Prices trending up for some recycled resins

July 24, 2014 1:27 pm ET

Plastics News is correcting prices for recycled grades of several commodity resins on this week's resin pricing chart.    More

PetStar doubles capacity at Mexico recycling facility

July 24, 2014 2:10 pm ET

Mexican recycling giant PetStar SAPI de CV, owned by the System of Coca-Cola Bottlers in Mexico, has doubled the capacity of its facility to 130...    More

Meredian merging with Danimer Scientific

July 24, 2014 1:59 pm ET

Bioplastics maker Meredian Inc. is merging with its sister firm, Danimer Scientific LLC.    More

Image

US Bioplastics receives funding to bring Gatoresin to the market

July 24, 2014 1:44 pm ET

Materials maker U.S. Bioplastics is hoping its Gatoresin product will take a bite out of the bioplastics market, thanks to funding from a state...    More

Image

Injection molder, recycler Polyvulc USA puts itself up for sale

July 24, 2014 12:41 pm ET

Fred Farrell and Larry Lambiotte, founders of Polyvulc USA Inc. and its subsidiaries Polyvulc Tire Recycling Llc and Winnsboro Rubber Recycling LLC, a...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events