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

A health care worker receives one of the first COVID-19 vaccine doses at Zuckerberg San Francisco General Hospital on Tuesday Dec. 15, 2020. (Courtesy SFgov)
SF to open three large sites for COVID-19 vaccinations

Breed: ‘We need more doses. We are asking for more doses’

Tongo Eisen-Martin, a Bernal Heights resident, named San Francisco’s eighth poet laureate. (Kevin N. Hume/S.F. Examiner)
Tongo Eisen-Martin becomes San Francisco’s eighth poet laureate

Bernal Heights resident Tongo Eisen-Martin has become San Francisco’s eighth poet laureate.… Continue reading

Homeless people's tents can be seen on Golden Gate Avenue in the Tenderloin on Wednesday afternoon, Dec. 16, 2020. (Photo by Ekevara Kitpowsong/S.F. Examiner)
Statewide business tax could bring new funds to combat homelessness

San Francisco could get more than $100 million a year for housing, rental assistance, shelter beds

The Museum of the African Diaspora in San Francisco (a mural by artist Jamie Treacy is pictued) has a lineup of free online programming including activities for youngsters scheduled for Martin Luther King Jr. Day on Jan. 18. (Courtesy Demetri Broxton/Museum of the African Diaspora)
Stanford, Museum of the African Diaspora host MLK Day activities

Online offerings include films, music, discussion

Speaker of the House Nancy Pelosi presides the US House of Representatives vote on the impeachment of US President Donald Trump at the US Capitol, January 13, 2021, in Washington, DC. - The Democrat-controlled US House of Representatives on January 13 opened debate on a historic second impeachment of President Donald Trump over his supporters' attack of the Capitol that left five dead. (SAUL LOEB/AFP via Getty Images/TNS)
House votes 232-197 to impeach Trump a second time

Focus shifts to Senate, where McConnell has signaled he may not stand by president

Most Read