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Waste & Recycling July 22, 2016 12:30:19 PM

California metal recycling facility fined $90,000 for unlawful scrap transactions

Paul Ploumis
ScrapMonster Author
The owner of Legends Smelting and Recycling Inc. has reached an agreement with the Attorney’s Office, agreeing to pay a sum of $90,000 in settlement of the consumer protection case.

California metal recycling facility fined $90,000 for unlawful scrap transactions

LOS ANGELES (Scrap Monster): The San Diego County District Attorney’s office has fined a Spring Valley, California recycling company for violating the Business and Professions Code during transactions involving purchase of used catalytic converters.

The owner of Legends Smelting and Recycling Inc. has reached an agreement with the Attorney’s Office, agreeing to pay a sum of $90,000 in settlement of the consumer protection case. This includes $75,000 as penalty, $9,857 in costs to the Sheriff’s Department and $5,600 in costs to the District Attorney’s Office. The terms of the settlement also direct the company to ensure that state laws are strictly followed during similar future transactions. Legends Smelting and Recycling Inc. must collect all relevant information as required by statute in its future purchases of used catalytic converters. The terms of the settlement were ordered by San Diego Superior Court Judge Timothy Taylor.

Earlier, the District Consumer Protection Unit had filed a civil petition against the company stating that the owners of the company has violated state law by failing to collect information from sellers while purchasing used catalytic converters. The petition also noted that the company has further violated state laws by paying sellers with post-dated checks. The San Diego County Sheriff’s Department has begun investigation at the recycling facility in 2012, following sharp rise in catalytic converter thefts across the country.

According to state laws, recyclers are required to record detailed information about the sellers including vehicle identification numbers. In addition, they are also required to obtain additional information on where the sellers obtained the used catalytic converters. The recyclers are entitled to provide such information to cops in order to help them catch thieves who steal catalytic converters. Also, recyclers are required to wait for three business days before making payment to sellers.

Theft of catalytic converters has been on the rise during the past several months across the state. Around 30 catalytic converter theft incidents were reported, mainly in the Windsor area in Sonoma County during the month of March alone.

Meantime, cops have cautioned residents about the growing number of theft incidents. It doesn’t take much effort to steal catalytic converter from parked vehicle, especially from vehicles which have higher ground clearance and exposed exhaust systems. Depending on the part, scrap yards pay anywhere between $50 and $250 for a used catalytic converter, due to the presence of small amounts of precious metals such as platinum, palladium and rhodium in them.

In order to prevent the vehicle from catalytic converter theft, citizens are urged to park their vehicles in well-lit busy areas. It is also advised to secure the converter to the vehicle’s frame by welding in some pieces of hardened steel. Auto parts stores also have several catalytic converter theft deterrent systems. Residents are also advised to engrave Vehicle Identification Number (VIN) to the catalytic converter so as to trace it quickly in case of any threat.

Legend Smelting & Recycling was founded in 1982 in Newark Ohio by Mark Sasko and Randy Hess. For more than 30 years, it has been a major buyer and processor of used catalytic converters in North America. Additionally, the company also processes a wide range of non ferrous products including aluminum cans, aluminum wheels, batteries, starters, AC pumps and copper radiators. The company’s corporate office is located in Hebron, Ohio. It also has recycling facilities at Newark, Ohio; Edinburgh, Indiana and Spring Valley, California.

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