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ENCINO MAN FACES PRISON FOR 'SEINFELD'-LIKE SCAM.


Byline: Josh Kleinbaum Staff Writer

An Encino man pleaded guilty to running a recycling scheme straight out of a ``Seinfeld'' episode - one that bilked California out of $2.5 million, authorities said Wednesday.

Errol Segal, 61, president of Active Recycling, trucked more than 50 million cans and bottles into California from neighboring neigh·bor  
n.
1. One who lives near or next to another.

2. A person, place, or thing adjacent to or located near another.

3. A fellow human.

4. Used as a form of familiar address.

v.
 states and Mexico, then falsified records to bill the state for the California Redemption Value California Redemption Value (CRV) is a deposit paid on purchases of certain recyclable beverage containers in California. The consumer pays CRV on the purchase of beverages with aluminum, plastic, glass, and bimetal containers and can be reimbursed if the containers are . The company also billed the state for more than 10 million bogus bottles.

``This is the largest (recycling scheme) my office has done in a long, long time, if ever,'' Assistant U.S. Attorney Scott Garringer said. ``We're talking scores, if not hundreds, of loads.''

The scheme is reminiscent of a ``Seinfeld'' episode in which Kramer and Newman try to bring a truckload truck·load  
n.
The quantity that a truck can hold.

truckload ncamión m lleno 
 of cans from New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
, which has a 5-cent redemption value Redemption Value refers to the value that is placed on a party's head after they wrong you in some way. It is seen as the payment you are willing to make to get justice. , to Michigan, which offers 10 cents.

The plan goes awry when Kramer and Newman spot Jerry's stolen car on the freeway in Ohio. Instead of going to Michigan, Kramer decides to pursue the car.

``We've all seen that `Seinfeld,''' Garringer said. ``I can just picture Kramer in the back of the truck, throwing out bags of cans to lighten the load.''

In California, the redemption value is much less than Michigan - 2 1/2 cents to 4 cents per can or bottle, depending on weight. Consumers are charged the fee when they buy the can, then bring the can to a privately owned recycling center. The center then bills the state for each can.

Segal pleaded guilty Tuesday to mail fraud, conspiring to process ineligible cans and bottles and falsifying fal·si·fy  
v. fal·si·fied, fal·si·fy·ing, fal·si·fies

v.tr.
1. To state untruthfully; misrepresent.

2.
a.
 paperwork. He faces a maximum of 20 years in federal prison and is scheduled to be sentenced July 19.

Seven of Segal's co-conspirators, five from the San Fernando Valley San Fernando Valley

Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills.
, also pleaded guilty to participating in the scam, as did two recycling companies - Active Recycling and World Wide Recycling. The companies could face $1 million fines.

Josh Kleinbaum, (818) 713-3669

josh.kleinbaum(at)dailynews.com
COPYRIGHT 2006 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Daily News (Los Angeles, CA)
Date:Mar 23, 2006
Words:335
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