Two arrested in electronic waste recycling fraud case

Two managers of a San Jose-based electronics and metal waste recycling warehouse were arrested last week for allegedly attempting to
defraud the state out of $1 million in recycling reimbursement claims.

Jason Huang, 65, of Foster City, was arrested Aug. 19, and 38-year-old John Chen of Hillsborough was arrested Friday, officials said.

A third man, 69-year-old Joseph Chen of Hillsborough, who owns Tung Tai Group, is in China. Arrangements are being made to return him to the United States to be arraigned on the charges.

The Chens are father and son, and Huang is the brother of Joseph Chen.

The men are charged with making false reimbursement claims with the California Department of Resources Recycling and Recovery, also known as CalRecycle. The claims state they collected more material than they really did.

“Tung Tai Group attempted to collect $1 million in fraudulent and fictitious state reimbursements for millions of pounds of electronic waste
that didn't exist,” Attorney General Jerry Brown said in a statement. “This brazen scheme is a violation of state law and the public trust.”

According to the attorney general's office, the men face a total of 17 criminal counts for submitting false documents, attempting to defraud
the state, forgery, and hazardous waste storage and handling violations.

They face a maximum nine-year prison sentence if convicted.

Investigators with the Department of Toxic Substances Control were alerted by CalRecycle to discrepancies between Tung Tai's claims and the records kept by Golden State Records and Recycling, a company that collects and transfers electronics and metals to Tung Tai.

An example provided by the attorney general's office shows that Tung Tai submitted reimbursement claims to CalRecycle for 555,000 pounds of material, but the collector's records indicate it delivered 62,000 pounds to Tung Tai.

The state did not pay Tung Tai for the false or inflated claims.

The warehouse of Tung Tai Group is located on Rogers Avenue in San Jose, and its offices are in Burlingame.

Huang and John Chen were released on $1 million bail each and will be arraigned in the San Jose courthouse on Sept. 9.

Can’t get enough crime stories? Check out The Examiner’s new Law & Disorder Crime Blog.

Bay Area Newselectronic wasteLocalrecycling

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Muni’s K-Ingleside line will return six months earlier than previously announced. <ins>(Kevin N. Hume/S.F. Examiner)</ins>
K-Ingleside train to return on May 15

Announcement comes on the heels of pressure from Supervisor Myrna Melgar

Former Stockton Mayor Michael Tubbs spoke to San Francisco’s new Guaranteed Income Advisory Group on April 16. (Courtesy SFGOV)
City launches task force to explore Universal Basic Income programs

San Francisco on Friday launched a guaranteed income task force that could… Continue reading

Demonstrators march from Mission High School towards the San Francisco Police station on Valencia Street. (Jordi Molina/ Special to the S.F. Examiner)
Vigil, march honors those killed by police

Deaths of Daunte Wright, Roger Allen and others prompt renewed calls for defunding

A Recology employee stands at the comapany’s recycling facility on Pier 96 in 2016. (Jessica Christian/2016 S.F. Examiner)
Nuru scandal: Feds charge second former Recology executive with bribery

A second former Recology executive is facing charges for allegedly bribing ex-Public… Continue reading

Kiana Williams
Stanford’s Kiana Williams drafted by WNBA champion Seattle Storm

Kiana Williams is going from one championship team to another. A senior… Continue reading

Most Read