DTSC Announces Arrests in Major E-waste Fraud Case
Crime Blotter
August 25, 2010
SACRAMENTO, CA – The Department of Toxic Substances Control (DTSC) today announced the arrest of two Bay Area men, who face a total of 17 counts for allegedly attempting to defraud the state out of $1 million through "phony and forged" claims of recycled electronic waste. Fourteen of the seventeen counts are felonies.
DTSC criminal investigators arrested John Chen, 38, of Hillsborough, and Jason Huang, 65, of Foster City, in San Mateo County. Joseph Chen, 69, of Hillsborough, is in China and arrangements are being made for him to return to the U.S. for arraignment. Joseph Chen and John Chen are father and son. Investigators working together with the Attorney General´s Office believe the suspects, knowingly submitted false or forged documents in an attempt to obtain money from the State of California. They also allegedly forged checks and violated environmental regulations pertaining to the safe handling of hazardous material.
"These arrests show that DTSC is committed to keeping e-waste out of our landfills and to rooting out those that defraud our system for private financial gain," said DTSC Acting Director Maziar Movassaghi.
This case began in 2008 after auditors from the Department of Resources Recycling and Recovery (CalRecycle) tipped off DTSC fraud investigators about discrepancies in the claims submitted by the company. Today´s arrests are the result of the close cooperation between DTSC and different law enforcement agencies and the Attorney General´s Office.
"Tung Tai Group attempted to collect $1 million in fraudulent and fictitious state reimbursements for millions of pounds of electronic waste they never actually recycled," Brown said. "This brazen scheme is a violation of state law and public trust.
The suspects have also been charged with misdemeanor violations of hazardous waste storage and handling laws. They face up to nine years in prison. Bail has been set at $1 million for each of the men. John Chen and Huang are being arraigned at the San Jose Courthouse on September 9.
DTSC criminal investigators arrested John Chen, 38, of Hillsborough, and Jason Huang, 65, of Foster City, in San Mateo County. Joseph Chen, 69, of Hillsborough, is in China and arrangements are being made for him to return to the U.S. for arraignment. Joseph Chen and John Chen are father and son. Investigators working together with the Attorney General´s Office believe the suspects, knowingly submitted false or forged documents in an attempt to obtain money from the State of California. They also allegedly forged checks and violated environmental regulations pertaining to the safe handling of hazardous material.
"These arrests show that DTSC is committed to keeping e-waste out of our landfills and to rooting out those that defraud our system for private financial gain," said DTSC Acting Director Maziar Movassaghi.
This case began in 2008 after auditors from the Department of Resources Recycling and Recovery (CalRecycle) tipped off DTSC fraud investigators about discrepancies in the claims submitted by the company. Today´s arrests are the result of the close cooperation between DTSC and different law enforcement agencies and the Attorney General´s Office.
"Tung Tai Group attempted to collect $1 million in fraudulent and fictitious state reimbursements for millions of pounds of electronic waste they never actually recycled," Brown said. "This brazen scheme is a violation of state law and public trust.
The suspects have also been charged with misdemeanor violations of hazardous waste storage and handling laws. They face up to nine years in prison. Bail has been set at $1 million for each of the men. John Chen and Huang are being arraigned at the San Jose Courthouse on September 9.
Print
Email
