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

School board members Gabriela Lopez (left) and Alison Collins (right) say they have been the subject of frequent hateful, racist and sexist attacks during their time on the school board. (Kevin N. Hume/S.F Examiner)
Angered by Lowell decision, SFUSD grad targets school board members with violent imagery

Facebook page depicts two women of color on board with swastikas and x-marks on their faces

Supervisor Sandra Lee Fewer, a former school board member, said it was ‘ridiculous’ that the school district did not yet have a plan to reopen. <ins>(Kevin N. Hume/S.F. Examiner)</ins>
Supervisors demand SFUSD set a timeline for reopening

Pressure grows on district to resume in-person learning as The City’s COVID-19 case count goes down

“Tenet,” the new Christopher Nolan film starring John David Washington, is showing at the drive-in in Concord. (Courtesy Warner Bros.)
Drive-ins are popping up all over the Bay Area

There are pandemic-era options for movie lovers who want to watch outdoors

The San Francisco International Arts Festival will present performances this weekend outdoors at Fort Mason, including on the Parade Ground, Eucalyptus Grove and Black Point Battery. (Kevin N. Hume/S.F. Examiner)
SF International Arts Festival wins health department approval for weekend performances

Rules allow no more than 50 people at outdoor Fort Mason performances

In this handout image provided by the California Department of Corrections, convicted murderer Scott Peterson poses for a mug shot March 17, 2005 in San Quentin, California. Judge Alfred A. Delucchi sentenced Peterson to death March 16 for murdering his wife, Laci Peterson, and their unborn child. (California Department of Corrections via Getty Images/TNS)
Prosecutors to retry penalty phase of Scott Peterson trial

2003 discovery of Laci Peterson’s body led to sensational high-profile murder trial of husband

Most Read