Suspects Arraigned In Pop Can Smuggling Ring

[benji]

http://www.clickondetroit.com/news/14214576/detail.html

Authorities said they arrested 10 people and seized more than $500,000 in cash after breaking up a smuggling ring that collected millions of beverage containers in other states and cashed them in for 10 cents apiece in Michigan.

The 10 people were arraigned on charges ranging from false pretense, a possible 5-year felony to running a criminal enterprise, a possible 20-year sentence.

A total of 15 people were named in a 67-count warrant issued as part of Operation Can Scam, Attorney General Mike Cox said Wednesday. Some suspects were members of two smuggling rings based in Ohio and others were Michigan merchants who took part in the scheme, he said.

Yes, if you are wondering, you have seen this before:

Newman learns that bottles and cans can be refunded for 10 cents in Michigan (as opposed to 5 cents in many other states). Kramer tells him it's impossible to gain a profit from depositing the bottles in Michigan due to the total gas, tollbooth and truck rental fees that would compile during the trip, but Newman tries to find a way.

[J@3]

How are the homeless people that spend hours going through garbage bins in broad daylight to find one or two cans supposed to compete with this? Absolutely despicable. As are homeless people.

[shadowgrin]

I don't know what's wrong about it. If it's good for the environment, then do it.
The only thing I see wrong is the oversight of the lawmakers. Why would Michigan give 10 cents when most other states give only 5 cents.

[benji]

Well, in this case, the problem isn't that they were recycling too much.

They ran grocery stores such as Save Plus Superstore in Pontiac, The Larosa Market In Sylvan Lake and Value Foods in Ypsilanti, police also raided The Farmer John, Savemart Food Center and the Americana foods, all three in Detroit.

Investigators alleged that millions of non-redeemable out-of-state cans were collected, crushed, packaged in plastic bags and sold at a discount to merchants who then redeemed them.

Bulk redemption payments from the state are based on weight.

Basically, the cans were collected from out of state, like in Ohio, in large numbers, then sent into Michigan to make the extra five cents profit. In effect defrauding the state out of the five cents on each can. (Article indicates this costs the state $13 million a year.)

When you buy things like that you pay an extra ten cents here in Michigan. So if I buy a Coke for $1.00, ten cents of that is the recycling deposit. When I return the can to a store, they give me the ten cents back. But if I go to Ohio, buy it for $0.95, with a five cent desposit. (Figures made up.) Then come back to Michigan, I'm getting an extra five cents that was never paid as a deposit to begin with.

[shadowgrin]

When you buy things like that you pay an extra ten cents here in Michigan.

That clearly explains it.
I wondered why make a recyable 10 cents as compared to 5 cents, when the people who made the law probably would have seen its potential for abuse.

[benji]

I think it was to motivate more recycling. If it's just five cents, that's half as much money you give away, if you do not return the cans.