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
Companies & Associations

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

Ford moving forward in carbon fiber for 'high volume' use

April 17, 2015 10:21 am ET

Ford Motor Co. has signed a deal with a carbon-fiber manufacturer to jointly explore “high-volume” automotive uses for the lightweight...    More

Image

Thailand's Royal Group adding thermoforming plant in Indiana

April 17, 2015 11:17 am ET

Royal Interpack North America Inc. is spending $12 million to make recycle-content PET clamshell containers in Anderson, Ind.    More

Image

Zoltek expanding CF capacity in Europe

April 17, 2015 10:12 am ET

Leading carbon fiber group Zoltek Corp. has signed a strategic agreement with the Hungarian government to expand its operation in northern Hungary,...    More

Image

Hanwha Azdel adds capacity in Lynchburg

April 16, 2015 2:01 pm ET

Composite maker Hanwha Azdel Inc. will add space and a new production line at its Lynchburg, Va., production facility, the company announced April 16.    More

Image

Denmark's Faerch Plast looks to expand packaging market beyond Europe

April 16, 2015 10:52 am ET

Denmark-based Faerch Plast A/S, a food packaging company, has announced it plans to target Australia, New Zealand, the Middle East, the U.S., Canada, ...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events