The criminal charges are the result of an investigation initiated by the the Basel Action Network (BAN), the watchdog group reported.
The investigation was featured in CBS’s 60 Minutes news magazine, “The Wasteland.” It is the first instance that criminal charges have been brought against an e-waste exporter, BAN said.
“In 2007 and 2008, BAN volunteers photographed 21 sea-going containers at Executive Recycling’s loading docks that they subsequently tracked across the world, with most ending up in China. BAN then alerted the Government Accountability Office (GAO) and 60 Minutes, and together the groups documented US businesses posing as responsible electronics recyclers but who instead were simply shipping e-waste to developing countries where it was processed in deadly, highly polluting operations. The resulting 60 Minutes episode has since become one of the most popular and award winning in the program’s history,” according to the environmental group.
“This is a major victory for global environmental justice,” said BAN Executive Director Jim Puckett. “Even before we have a U.S. law in place to explicitly prohibit this dumping on developing countries, the US government’s criminal justice system has recognized the massive toxic trade we first discovered in 2001 as fraudulent, as smuggling, and as an environmental crime. Now these sham recyclers are warned: their shameful practices can land them in jail.”
“The proper disposal of our electronic waste is not only critical today, but will also become more important in the future,” said U.S. Attorney John Walsh. “U.S. law requires proper disposal of this type of waste not only for the protection of Americans, but also so that we in the United States live up to our responsibility to be good international environmental stewards.”
“Our ongoing 30-month investigation included cooperation from law enforcement agencies in the United States, Hong Kong and Canada,” said David M. Marwell, special agent in charge of ICE HSI in Denver. “The investigation confirmed that Executive Recycling repeatedly exported used cathode ray tubes to China. In addition, Executive Recycling also made false promises to its customers who believed that Executive Recycling was properly disposing of their electronic waste. Homeland Security Investigations stands ready to prevent any company from circumventing U.S. controls to export hazardous waste.”
“As consumer demand for electronic goods continues to grow, communities and individuals will look for safe, domestic recycling options for electronics that are no longer needed,” said Lori Hanson, Special Agent in Charge of EPA’s criminal enforcement program in Colorado. “EPA is committed to ensuring that companies that offer fraudulent recycling services, where e-waste is illegally shipped abroad, are caught and prosecuted.”
According to the federal grand jury indictment, Executive Recycling was responsible for at least 300 exports, including shipments of more than 100,000 CRTs. Revenues of these activiteis were in excess of $1.8 million, the government said. Executive’s CEO, Mr. Brandon Richter, together with Mr. Tor Olson, Vice President of Operations, were indicted on 16 separate counts including wire and mail fraud, environmental crimes, exportation contrary to law, and destruction, alteration, or falsification of records.
- Photo by EMPA. Supplied by UNU
BAN said Executive Recycling still operates in the Denver area and has had e-waste recycling contracts with the cities of Denver, Boulder, and Broomfield and the El Paso County and Jefferson County governments. It is registered with the Colorado Department of Public Health and Environment as a “Large Quantity Handler of Universal Waste.”
“Sadly, Executive Recycling is just the tip of the e-waste iceberg,” said Puckett. “They are but one of hundreds of fake recyclers who sell greenness and responsibility but in fact practice global dumping. This is why we must pass federal legislation prohibiting this activity. And this is why all those disposing of electronic waste should use only Certified e-Stewards® Recyclers who will not export your old toxic computer or TV to a developing country.”
If convicted of wire fraud, the defendants face not more than 20 years in federal prison, and a fine of up to $250,000, or twice the gross gain or loss from the offense, per count, for each of the 11 counts. If convicted of mail fraud, the defendants face not more than 20 years in federal prison, and a fine of up to $250,000, or twice the gross gain or loss from the offense, per count, for each of the two counts. If convicted of the one count of RCRA, the defendants face not more than 2 years imprisonment and a fine of up to $50,000 a day or a fine of up to $500,000 or either twice the gross gain or loss. If convicted on the one count of smuggling goods from the U.S., the defendants face not more than 10 years in federal prison, and a fine of up to $250,000. If convicted of one count of destruction of records during the course of EPA’s administrative process, the defendants face not more than 20 years in federal prison, and a fine of up to $250,000. If the corporation is convicted of wire or mail fraud it faces a fine of up to $500,000 or twice the gross gain or loss per count for each of 13 counts. If convicted of one count of RCRA, the corporation faces a fine of not more than $50,000 per day of violation or twice the gross gain or loss. If convicted of one count of smuggling goods from the United States, the corporation faces a fine of up to $500,000 or twice the gross gain or loss. The indictment includes an asset forfeiture allegation, which states that upon conviction the defendants shall forfeit to the United States any and all property or proceeds derived from their illegal activity.
To view the original indictment, click on executive_recycling_indictment
See the government announcement here.
The company did not immediately offer comment. The most recent information available from the firm is a one-paragraph statement from 2008 stating the company is in full compliance with state of Colorado laws.
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“The evolution and adoption of responsible electronics recycling practices made an important transition today as the Basel Action Network formally sunsetted the Pledged e-Stewards Recyclers program on September 1, 2011. Established in 2003, the Pledge program was the first widely recognized initiative designed to identify electronics recyclers committed to globally responsible e-waste management practices. Toay marks its official and full replacement by the Certified e-Stewards® Recyclers program,” according to the Basel Action Network.
“In 2003, the world was just waking up to the horrors of e-waste export and the dire need for a means of separating good recyclers from bad recyclers,” said Roman. “I’m amazed the basic tenets of the Pledge program, identified by BAN eight years ago, provided the foundation for what are now globally accepted principles of responsible e-recycling. The new e-Stewards Recycler Certification is even more comprehensive and accountable – really the gold standard,” said Lauren Roman, BAN’s e-Stewards Business Director.
“This is a significant milestone for our company. Many of our customers and partners have been looking for assurance from e-recyclers such as ECS that we have the highest standards and processes available in the world,” said Jim Taggart, Chief Executive Officer, ECS Refining. “We had been an e-Stewards Founder since the program’s inception, but we weren’t going to be satisfied until we secured the most relevant industry standard by becoming ‘e-Stewards Certified.’ In addition, we are continuing audits with our other regional processing facilities to provide a fully certified, national solution for our clients.”
The e-Stewards Certification was developed by a group of electronics recyclers, environmentalists, industry leaders and health and safety and technical experts working with the Basel Action Network (BAN), a non-governmental organization focused on stopping e-waste exports. The e-Stewards Certification program, created by BAN, formally recognizes electronics recyclers that adhere to environmentally and socially responsible practices when recovering hazardous electronic materials.
“This designation is extremely meaningful to our customers and prospects. They can be assured that our recycled materials are processed correctly, safely and not sent overseas. Some of our competitors can’t make that claim,” said Mark Robards, Vice President of Sales, ECS Refining. “This certification publicly va lidates and extends our 30 year policy of being a conscientious e-recycling company which our partners, customers and consumers can trust.”
Companies pursuing e-Stewards Certification undergo audits to ensure they comply with the e-Stewards Standard and have a registered ISO 14001:2004 environmental management system in place.
“We’re proud to announce that ECS Refining Texas has received e-Stewards Certification. This is no small feat,” said Jim Puckett, Executive Director of BAN. “ECS’s addition to our network of responsible recyclers is particularly important since they have processes that not only serve generators of e-waste but also the electronics recycling industry. Having them as a qualified processor for other recyclers seeking responsible domestic recycling moves our mission of accountable recycling forward.”
Waste & Recycling News reported the company’s attorney, Cathy Pilkington, said its records from the shipping company CGA CGM LLC prove that the containers´ contents did not originate with the company. The containers also did not hold e-waste, the attorney told the media outlet – one of the shipments contained auto parts, although Pilkington did not share who the shippers were on the manifest.
“We are attempting to get a third-party audit firm to look at [our information],” she told the publication.
Intercon Solutions and the Basel Action Network are involved in a legal battle over BAN’s decision to deny the company its e-Stewards certification over the alleged exportation of e-waste from Intercon’s Illinois facility to China through Hong Kong.
R2 Solutions also ‘delisted’ Intercon from its website database of Responsible Recycling certified companies, pending an internal investigation, over the allegations.
At least one of the two shipping containers involved in the scandal were found to contain CRTs and other e-waste materials, BAN reported.
Officials from BAN said they haven´t seen the documents Intercon has procured.
“One would think that if Intercon truly wished for BAN to consider new evidence as we have promised to do, one would think they would send it to us and do so even prior to writing a press release,” Jim Puckett, BAN´s executive director, told Waste & Recycling News in a statement.
The Intercon scandal, which now is being litigated in court, presented a unique challenge for R2 Solutions and the Responsible Recycling standard – what to do when a certified recycler is accused of massive wrongdoing. The challenge – and the response so far – could lead to significant changes in how the certification is administered, R2 Solutions’ board of directors said.
At the time, R2 Solutions, which administers the R2 standard, removed, or in their words “delisted” the company from the directory of R2-certified recyclers.
Now, the R2 board of directors has sent a letter to the Technical Advisory Committee, requesting help in developing policies and procedures in dealing with similar crises if and when they arise in the future.
“We, the R2 Solutions Board of Directors, believe it is essential that both the Board and the TAC do everything in our collective means to maintain and strengthen the integrity of the R2 Standard. R2 is a new brand and industry opinion is still unsettled about whether it firmly demands and demonstrates responsible recycling. We must do everything we can to ensure that it does.”
The board said it would explore, and maybe implement, changes to R2 and how it is administered.
This includes strong language laying out precisely what is required of certified recyclers an certifying bodies auditing the recyclers.
“Certifying bodies should be able to act decisively if it appears that a requirement is not being met—at any point during the three-year certification cycle. And R2 Solutions needs to be able to work collaboratively with the CBs in these instances,” the board of directors write in their letter.
A policy for dealing with non-conformances must be put in place, the board wrote, that will:
- Fully protect the integrity of the R2 standard while providing due process to the facility,
- Articulates the role and responsibilities of the certifying bodies, and
- Describes the actions R2 Solutions will take in such situations.
In the letter, the R2 Solutions board of directors seeks guidance and input from R2 stakeholders.
Current members of the R2 Solutions board are:
John DeVillars, who works in the area of renewable energy as Managing Partner of BlueWave Capital. The Regional Administrator for New England during President Clinton’s EPA, he served as co-Chair of EPA’s national Common Sense Initiative Advisory Group for the electronics industry.
John Howard is currently working as an independent public policy consultant after a distinguished career in the field of law. During the Bush Administration, he served as the Federal Environmental Executive and went on to chair EPA’s National Advisory Council for Environmental Policy and Technology.
John Lingelbach is a nationally-recognized environmental mediator who is currently serving as Acting Executive Director of R2 Solutions. From 2006 through 2008, he facilitated the multi-stakeholder development of the R2 Practices.
Pete Regan is currently working with private-equity backed companies and with several non-profits. Previously, he served as CEO and Chairman of the Board of ERM, Inc., the world’s leading global provider of EHS, risk and social consulting services.
Lynn Rubinstein is the Executive Director of the Northeast Recycling Council (NERC) for the past 11 years. NERC’s mission is to advance an environmentally sustainable economy by promoting source and toxicity reduction, recycling, and the purchasing of environmentally preferable products and services.
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In addition to the Neuvo Leon facility, Glezco operates additional e-recycling plants in Guadalajara, Jalisco and Tijuana, Baja California in Mexico. These operations are also undergoing certification, as required under the e-Stewards program.
“We are thrilled to welcome the first Mexican e-Stewards recycler. The global expansion of the e-Stewards program is essential for servicing the needs of the world’s most responsible multi-national corporations,” said Jim Puckett, Executive Director of BAN.
e-Stewards Certification ensures compliance with the international Basel Convention and its decisions as it prohibits toxic components contained in corporate electronic assets from finding their way to developing countries. Mexico is a Party to the Basel Convention.
Glezco also holds ISO 9001, 14001 and 18001 certificates and has achieved the Clean Industry Certification by SEMARNAT, a voluntary program ensuring compliance with Mexico’s federal environmental laws.
Established in 1992, Glezco serves large enterprises in a wide range of industries in Mexico recycling a large amount of consumer and corporate electronic scrap and equipment.
“Glezco has a long-standing commitment to best practices but we felt that the e-Stewards Certification was essential for ensuring our customers that their hazardous e-waste and sensitive data will be properly managed,” said Horacio Gonzalez, CEO of Glezco. “It was hard work but we are very proud of holding the distinction of having passed the test of the industry’s gold standard.”
For more information on the company visit: http://glezcocorp.com.mx
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John S. Shegerian
Certified e-Stewards Recyclers, such as ERI, have been extensively audited by accredited third-party Certification Bodies to ensure that all requirements of the Standard have been met.
The e-Stewards Standard, created by BAN in conjunction with industry leaders and health and environmental specialists, requires recyclers to eliminate exports of hazardous e-wastes to developing countries; to halt the dumping of such wastes in municipal landfills or incinerators; and to cease the use of captive prison populations to manage toxic e-wastes. It also calls for strict protection of private data and occupational health safeguards to ensure that workers in recycling plants are not exposed to toxic dusts and fumes.
“The e-Stewards Standard is a market differentiator in an industry that needs one badly,” said Jim Puckett, Founder of the Basel Action Network. “If you care about security of your data, and the impacts of toxic substances in electronic waste on workers here at home and in developing countries, then you will choose to be held to this gold standard of environmental and social responsibility and you will accept no substitutes.”
Certification body QMI-SAI Global conducted the ERI audits that independently determined every one of ERI’s current facilities to be operating within the parameters set by the e-Stewards Standard. ERI reported that their three newest locations, in Indiana, Massachusetts and North Carolina, are also on schedule to be certified by the end of August, 2011.
“We are extremely proud to have met the strictest standards of environmental and operational excellence,” said John S. Shegerian, Chairman and CEO of ERI. “We strongly support BAN’s certified, third-party audited program and will proudly display our e-Steward Certification documents at each our locations.”
Shegerian also noted that ERI continues to see steady growth and will soon be expanding nationally and internationally. As each facility becomes operational they will likewise become audited and certified.
Fresno-headquartered Electronic Recyclers International is licensed to de-manufacture and recycle televisions, computer monitors, computers, and other types of electronic equipment. ERI processes more than 140 million pounds of electronic waste annually at its locations in California, Washington, Colorado, and Texas. For more information about e-waste recycling and ERI, call 1-800-884-8466 or visit http://www.electronicrecyclers.com.
]]>The company was also listed as a company that pledged to become an e-Steward and, according to BAN, was in the process of applying for certification.
BAN’s e-Stewards certification, among other requirements, prohibits the exportation of non-working electronics to developing nations. Jim Puckett, director of BAN, said the organization had proof the company attempted to export two containers of waste CRTs to China through Hong Kong.
“It is very sad that many e-Waste recycling companies continue to pose as “responsible recyclers” while they continue to export toxic,” said Basel Action Network’s Executive Director, Jim Puckett. “In this case, we can take some satisfaction that our e-Stewards Certification screening methods and audit caught what BAN has every reason to believe is a violator.”
“R2 Solutions is communicating with the certification body (CB) that certified Intercon Solutions. The CB will undergo an assessment of the matter and determine an appropriate course of action,” according to a press release issued by R2 Solutions. “R2 Solutions took this action after reviewing information strongly suggesting Intercon Solutions violated key provisions of the R2 Standard. R2 Solutions took this “delisting” action pending consideration of the matter by the R2 Solutions Board of Directors, which will occur later this week. This information was gathered by the Basel Action Network and shared with R2 Solutions. It documents alleged violations of law concerning the export of Focus Materials. The Basel Action Network derived its information from observations, shipment tracking, and communications with the Hong Kong Environmental Protection Department.
The company did not immediately respond to an email seeking comment.
For more information visit: www.ban.org, www.e-Stewards.org and www.r2solutions.org.
Collectors and recyclers of obsolete electronics have until January 1st to enroll with the state’s E-Waste Program created by a law passed by the General Assembly this year.
The new law specifies that only collectors and recyclers enrolled in the program can work with electronics manufacturers who will soon be responsible for collecting and recycling the devices they sell in the state of Indiana.
Makers of computer monitors, laptops, and televisions must register with the state by April 1, 2010. If they fail to do so they won’t be allowed to sell their products in Indiana. This is a similar scenario with the controversial scenario in the state of New York, which is currently in litigation between the state and several electronic manufacturer trade groups.
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