Crime

Three Indicted in Seinfeld-Like Bottle Deposit Scheme

Three Indicted in Seinfeld Like Bottle Deposit Scheme

NBC Universal

PORTLAND, Maine (AP) — A memorable “Seinfeld” episode features Kramer and Newman taking thousands of cans and bottles to Michigan so they can get a nickel more per container than they would in New York, but beverage distributors say there’s nothing funny when it happens for real.

In Maine, which has a more expansive bottle-redemption law than neighboring states, three people have been accused of illegally cashing in more than 100,000 out-of-state bottles and cans for deposits, the first time criminal charges have been filed in the state over bottle-refund fraud, a prosecutor said.

A couple that runs a Maine redemption center and a Massachusetts man were indicted this week for allegedly redeeming beverage containers in Maine that were bought in other states.

Thomas and Megan Woodard, who run Green Bee Redemption in Kittery, face the more serious charge of allegedly passing off more than 100,000 out-of-state containers — with a value of more than $10,000 — as if they had been purchased in Maine.

That’s just the tip of the iceberg.

An estimated 90 million cans and bottles are fraudulently cashed in each year in Maine, costing beverage distributors $8 million to $10 million, said Newell Augur, executive director of the Maine Beverage Association.

People from other states — especially New Hampshire, which has no “bottle law” — routinely redeem loads of cans and bottles in Maine, Augur said. Redemption centers pay customers 5-cent refunds on most beverage containers and 15 cents for wine and liquor bottles. The centers, in turn, get that money back from distributors, plus a 3½- or 4-cent handling fee per container.

In the 1996 “Seinfeld” episode, Kramer and Newman hatch a plan to drive a truckload of cans and bottles to Michigan, because the redemption fee there was 10 cents, double New York’s nickel deposit.

Kramer laments it can’t be done. “You overload your inventory and you blow your margins on gasoline,” he says at one point. But Newman offers up free space in a mail truck he has to drive to Michigan before Mother’s Day — “the mother of all mail days,” he calls it — and the pair head off. (They end up aborting the trip while chasing down Jerry’s stolen Saab.)

“That was a very funny episode,” Augur recalls. “But this is not a laughing matter.”

Officials estimate that up to 1 billion beverage containers are sold in Maine each year. Containers sold in other states, however, carry the Maine deposit stamp because it’s not cost-effective to change labeling for each state.

The redemption rate — and the instances of fraud — have gone up with the poor economy, Augur said.

In all, 10 states have redemption laws, but Maine is susceptible to fraud because it has expanded its 1978 bottle-deposit law through the years beyond soda, beer and other carbonated beverages. It now accepts juice, water, sports drinks, liquor and other containers.

Neighboring New Hampshire doesn’t have any redemption law. In Massachusetts, redemptions are limited to beer, carbonated soft drinks and mineral waters.

Distributors say redemption fraud is most prevalent along Maine’s border with New Hampshire.

In 2003, the owner of redemption centers in the border towns of South Berwick and Kittery paid a $10,000 fine following a state crackdown on redemption fraud, but Assistant Attorney General Leanne Robbin said this week‘s indictments were the first criminal charges she’s aware of in a redemption case in Maine.

The Woodards did not return a call to their home seeking comment.

They are accused of knowingly accepting containers at their redemption center that were purchased in another state, and therefore not eligible for a refund in Maine, and then selling them to distributors for the combined handling and redemption fees.

Peter Prybot, a 62-year-old lobsterman and writer from Gloucester, Mass., denied the allegations in the indictment, which charges him with redeeming more than $1,000 of empty containers in Maine that weren’t eligible to be redeemed.

Prybot said he accumulated cans and bottles during road trips to Maine and later cashed them, but said they all came from Maine.

Augur said legislation has been introduced that could help alleviate the problem by allowing distributors to sue individuals they believe are illegally redeeming large numbers of containers in Maine.

Comments (91)

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  • dcwu
    Posted on February 13, 2011 at 12:57am

    Why don’t they pay what they said they would?

    Report Post »  
    • Chet Hempstead
      Posted on February 13, 2011 at 5:29am

      Because beverage companies aren’t buying old bottles and cans. They’re paying back money that the customer is supposed to have paid when they bought it.

      Report Post »  
  • Tractorboy
    Posted on February 13, 2011 at 12:36am

    Every time I have to return bottles and cans it’s always a rock, paper, scissors, to see who does it, than I wish there was some politition I could slap across the face, or challenge to a dual, for having to rehandle all those dirty cans and bottles at the same place I buy my food, instead of just putting them in the recycling bin which the town could sell for scrap to help keep my taxes lower.

    Report Post » Tractorboy  
  • C. Schwehr
    Posted on February 13, 2011 at 12:23am

    I applaud the people who use the laws to their benefit! This is capitalism at it’s finest!

    Report Post »  
  • UlyssesP
    Posted on February 12, 2011 at 11:11pm

    So where is the Bottle Deposit Czar being appointed?

    Report Post » UlyssesP  
  • Chicago Ray
    Posted on February 12, 2011 at 11:06pm

    Again our country’s deadbeats get their schemes and attack plans and dumb ideas from the people in Hollywood. We used to do that when we were kids.

    I’m a huge Seinfeld Junkie still watching it daily practically and what can you do, but these idiots and terrorists are usually too freakin’ stupid to come up with these ideas on their own, they get them from our movies and television.

    That‘s one of the reasons I’ve personally disliked the movie Independence Day, seeing our own monuments and icons being blown up and attacked even for ‘fantasy’ isn’t my idea of entertainment. thanks anyhow Will Smith and friends on that one. :(

    Report Post » One Man Progressive Wrecking Crew  
  • Stewie
    Posted on February 12, 2011 at 10:49pm

    The horror. Rampant crime in New England.

    If only the folks invading the country from the southern and northern borders were held to the same high standard of legitimacy as are their plastic and glass container counterparts in Maine

    Report Post »  
  • dealer@678
    Posted on February 12, 2011 at 10:48pm

    You anti dentite bastard

    Report Post »  
  • dealer@678
    Posted on February 12, 2011 at 10:43pm

    Oh John John

    Report Post »  
  • dealer@678
    Posted on February 12, 2011 at 10:41pm

    Crib notes, you have crib notes

    Report Post »  
  • dealer@678
    Posted on February 12, 2011 at 10:38pm

    Counter clock wise swirl. Thats my move

    Report Post »  
  • ctate970
    Posted on February 12, 2011 at 10:35pm

    When Obama was speaking of change, He was actually talking about the nickel per bottle you will get under The Obama Recycling program.

    Report Post »  
    • EP46
      Posted on February 13, 2011 at 8:42am

      Support your local long distance hauler….box up all recyclables and send them to the White House. They are stealing everything we have, give them the trash too.

      Report Post »  
  • dealer@678
    Posted on February 12, 2011 at 10:16pm

    His buttocks is sublime

    Report Post »  
  • mytwocents
    Posted on February 12, 2011 at 10:12pm

    I’ve got an idea. Let’s combine the money loosing U.S. post office and the recycle program. While they deliver and pick up our mail they can pick up the recycle stuff. Maybe they could also pick up the trash and read the meters (water and power), license the car and dog , take the picture for our drivers license and register us to vote. Now that would be public service.

    Report Post »  
  • dealer@678
    Posted on February 12, 2011 at 10:11pm

    36-24-55, I think i have what your looking for

    Report Post »  
  • dealer@678
    Posted on February 12, 2011 at 10:04pm

    It shrinks

    Report Post »  
  • dealer@678
    Posted on February 12, 2011 at 10:03pm

    So your the ass man

    Report Post »  
  • dealer@678
    Posted on February 12, 2011 at 10:00pm

    She has man hands

    Report Post »  
  • dealer@678
    Posted on February 12, 2011 at 9:59pm

    I was in the pool . I was in the pool !!!!

    Report Post »  
  • the_ancient
    Posted on February 12, 2011 at 9:31pm

    I would love to see how the state proves their case… Unless there is some indication as to the place of origin on the bottles, which the states that have this stupid policy refused to make the bottlers do “because it costs too much” then I do not see how, short of an admission of guilt, this can ever be proven criminally, it MIGHT be proven civilly where the burden of proof is smaller, but even then it would be a close case, and personally if I was on the jury I would nullify the law anyway, and refuse to convict.

    Report Post » the_ancient  
    • beekeeper
      Posted on February 12, 2011 at 10:37pm

      Here’s what it seems like to me:

      1) Border city redemption site
      2) Car with out of state plates pulls up
      3) Occupants of car deliver bulk QTY of bottles, cans – think over a thousand
      4) Occupants have no plausible reason for having so many empties.

      Not 100% proof, but pretty damning, IMHO…

      Report Post » beekeeper  
    • the_ancient
      Posted on February 13, 2011 at 2:56am

      @beekeeper
      I hope you never serve on a jury wanting to convict me of a crime

      Report Post » the_ancient  
    • Rowgue
      Posted on February 13, 2011 at 4:12am

      Criminal cases have to be proved beyond a reasonable doubt. It’s not good enough to show that something seems suspicious.

      Your logic would apply to a civil case where the burden is simply to show guilt by a preponderance of the evidence. Meaning that there is more that shows guilt than there is that shows innocence. You’d need a lot more than your little bullet list though unless the accused party were just morons and had no plausible explanation or outright admit guilt.

      Report Post »  
    • Boss J
      Posted on February 13, 2011 at 2:02pm

      Also, wouldn’t it need to be proven that ALL of the returns were from out of state?
      Seems like they could use the old “Sandwich bag” defense (drugs)- My client’s prints are on that bag of drugs because he ate a sandwich and threw the bag in the trash…
      If you can prove 1 can/ bottle could be from Maine then it’s possible that they all are.

      Report Post » Boss J  
    • Jimbo49
      Posted on February 14, 2011 at 10:55am

      Deposit laws were sold to the public, as forced recycling on consumers of certain products. They also sold the idea, that kids and other interested parties would collect discarded containers for the cash value. Now people who were “nudged” by the law into a specific action, touted by that law, are being called criminals. A can on the side of the road cannot tell the collector whether deposit was collected or not. Perhaps they should be labeled. Oh, wait…. they are. I live one block into MI, 10 cent deposit. In IN, no deposit. Why are the cans labeled the same? A can in my front yard probably came from IN. It will be turned in in MI. I guess that makes me a thief. Get rid of the laws, if they are unworkable.

      Report Post »  
    • beancat42
      Posted on May 20, 2012 at 7:11pm

      I work at a place on the border of NY and PA. We knowingly accept cans from PA people. It is illegal to do so, but my boss does not seem to mind. He willingly and knowingly will accept these cans knowing that it is stealing money from the distributors in the area.

      Report Post »  
  • Waltermelon
    Posted on February 12, 2011 at 9:26pm

    This is not crime. This is a big gaping loop-hole that was exploited. There should be the same standards throughout the US.

    Report Post » Waltermelon  
    • the_ancient
      Posted on February 12, 2011 at 9:34pm

      Yes, all bottle deposit/redeemtion laws should be abolished.

      Report Post » the_ancient  
    • kindling
      Posted on February 12, 2011 at 9:56pm

      I agree, it is another government scam that invites crime. I recycle and get nothing for it because it takes so long to stand behind those idiots that argue with the recyclers. I usually just hand mine to someone willing to stand there. If we stop changing to use bottles more would be sold and I think the same number would be recycled. It gives people jobs to sort this stuff at the dump rather than seeing them going through trash cans.

      Report Post » kindling  
    • RockyMountainMosaics.Com
      Posted on February 14, 2011 at 9:34pm

      This is another lesson for the Left about the Law of Unintended Consequences.

      Report Post »  
    • ClockKing
      Posted on February 15, 2011 at 10:37am

      The Left isn’t capable of learning lessons. They just can’t.

      Report Post » ClockKing  
  • MrButcher
    Posted on February 12, 2011 at 9:17pm

    “Peter Prybot, a 62-year-old lobsterman…”

    I read that and thought of this guy http://thehumanmarvels.com/?p=66

    Report Post » MrButcher  
  • reckless
    Posted on February 12, 2011 at 9:14pm

    This is what happens when liberal intentions confront reality.

    Report Post »  
    • CatB
      Posted on February 12, 2011 at 9:26pm

      Yes .. and I here Michigan wants to expand it to bottled water, joice etc …. good more retires can load up the trunk and make a little cash since the government changed the INFLATION method and they are getting scr*wed over with no COLA. Seems appropriate that they could make a little cash on cola….bottles and cans.

      Report Post »  
  • scout n ambush
    Posted on February 12, 2011 at 9:14pm

    Life imitating stupidity!

    Report Post » scout n ambush  
  • DashRipRock
    Posted on February 12, 2011 at 9:11pm

    Has anyone one seen BECKISNUTS lately?

    hmmmmmmmmmmmmmm

    Does he live in New England?

    Report Post »  
  • cheezwhiz
    Posted on February 12, 2011 at 9:10pm

    Why can’t all states have the same refund price ?

    cheezwhiz  
    • Xcori8r
      Posted on February 12, 2011 at 9:19pm

      Why should any state have a forced “refund” deposit at all? It was one of the original misguided attempts at forcing people to recycle and not litter. The beverage companies don’t want the bottles. If a refund deposit is such a good idea, put one on all milk cartons, juice boxes, candy wrappers etc. This issue is just more government BS gone bad.

      Report Post » Xcori8r  
    • cheezwhiz
      Posted on February 12, 2011 at 9:19pm

      Augur said legislation has been introduced that could help alleviate the problem by allowing distributors to sue individuals they believe are illegally redeeming large numbers of containers in Maine.
      ———
      So has Maine solved its most important problem yet,
      Whoopie-pie or blueberry-pie for dessert ?
      No wonder that state keeps sending their 2 hags to DC

      Report Post » cheezwhiz  
    • CatB
      Posted on February 12, 2011 at 9:23pm

      Why should we ???? We have curbside recycling included in our taxes .. we don’t have to “return” … though I wonder how many little old couples are supplimenting their S.S. by taking their empties back to Michigan after wintering in the south? Hey no COLA .. can’t blame them for trying to “cash in” on cola, or root beer or anything else. Evens out in the end .. I REFUSE to use those smelly nasty return machines when i am north … so mine either get “donated” or go out with the trash.

      If they are willing to stand and smell those nasty machines .. more power to them!

      Report Post »  
    • Xcori8r
      Posted on February 12, 2011 at 9:34pm

      Maybe we should send all of the bottles to the Mideast to be filled with gasoline and rags in support of democracy.

      Report Post » Xcori8r  
    • PlanetXenu
      Posted on February 12, 2011 at 9:37pm

      it’s funny how people, in fear of appearing liberal, endorse slobbery…. slobs.

      ;)

      Report Post »  
    • cnsrvtvj
      Posted on February 12, 2011 at 9:45pm

      That was an awesome episode of Seinfeld. Not as good as the soup Nazi episode, but it was one of the best.

      http://www.donsmithshow.com – conservative news and political humor

      Report Post » cnsrvtvj  
    • cheezwhiz
      Posted on February 12, 2011 at 9:56pm

      This issue is just more government BS gone bad.
      -
      So true .
      The problem : people bringing their recyclables to Maine
      The reason : higher redemption value in Maine
      The financial loss/profit to the government of Maine : NONE
      The action : prosecution and trial by government, on taxpayer dime and time
      The solution : more legislation and prosecutions and trials on taxpayer dime and time
      And the problem was what ?

      Report Post » cheezwhiz  
    • mcfinch
      Posted on February 12, 2011 at 10:42pm

      Makes sense to me.

      http://politicalbowl.com – Political Video Website

      Report Post » mcfinch  
    • Darmok and Jalad at Tanagra
      Posted on February 12, 2011 at 11:07pm

      Newman!

      Report Post » Darmok and Jalad at Tanagra  
    • booger71
      Posted on February 12, 2011 at 11:44pm

      This is why the politicians in Maine are stupid. Get rid of the law morons

      Report Post » booger71  
    • Mister President
      Posted on February 12, 2011 at 11:45pm

      Because we have a Federal government, not a national one, policies like bottle refunds are left to the states.

      My state doesn’t even have one. It’s the beauty of the system – one state can try one thing, while another can try something completely different.

      Mister President  
    • cheezwhiz
      Posted on February 13, 2011 at 12:53am

      My state doesn’t even have one. It’s the beauty of the system – one state can try one thing, while another can try something completely different.
      -
      and the people have a right to choose which state to patronize with / for –their dollars.
      Whats next ?
      Maine putting up check-points on highways leading into their state to check vehicles for empty cans and bottles ? TSA style checks on those entering their state ?
      What exactly is the end-game for the state of Maine in this ? There must be something that this state government is itching to achieve in this matter.

      Report Post » cheezwhiz  
    • Tractorboy
      Posted on February 13, 2011 at 12:58am

      @CATB, how about we just give those old folks say $20.00 bucks every time they bring in a 4 leaf clover instead?

      Report Post » Tractorboy  
    • Polwatcher
      Posted on February 13, 2011 at 6:07am

      My my…and the political geniuses that passed this law in Maine somehow never though to that.

      Report Post »  
    • Fletch
      Posted on February 13, 2011 at 7:24am

      these deposit laws create a HUGE pool of unclaimed deposits for the states and distributors

      they aren’t losing a penny but it does belie the the save-the-earth-by-recycling hypocrisy for everyone to see

      Report Post » Fletch  
    • Armed Patriot
      Posted on February 13, 2011 at 10:17am

      I thought the point was recycling???

      Report Post » Armed Patriot  
    • Melvin Spittle
      Posted on February 13, 2011 at 10:52am

      There is a cottage industry of homeless recyclers in California and other states that have redemption laws. I’m just thinking aloud here and it is a scary thought: If Oregon stopped redemption’s for bottles and cans, would all their homeless come to California? Wait! I got an even better idea! If Cali gets rid of their bottle law, they could save billions of cents AND all the homeless would move to Oregon! DOUBLE BONUS!!!!!! I’m thinking way to o much for a Sunday morning….

      Report Post » Melvin Spittle  
    • AmericanSoldier
      Posted on February 13, 2011 at 7:01pm

      I was willing to recycle when I bought my house a few years back. Then found out I had to pay for the service to pick up my recycling. Screw that!

      Report Post » American Soldier (Separated)  
    • thewipf
      Posted on February 14, 2011 at 1:18am

      1 billion containers are sold with a 5cent deposit, an estimated 90 million of returned bottles are fraudulent. This story leaves out an important number, how many of the 1 billion are returned every year? As long as that number is under 91% what’s the problem? I’m sure a big percentage of the legal ones are never returned.

      Report Post »  
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