Transcript Metal Theft: Finding a Solution Through Collaboration

Wireless Password: 9166703926
Metals Theft: Finding a
Solution through
Collaboration
Conference of Western Attorneys General
July 22, 2013
David Youngberg
Background
• General Manager of WMR Englewood CO recycling facility
• 25 years scrap industry experience
• Originally served in Provo, UT, then moved to Englewood,
CO in 2003
• Currently serving on the Colorado Metal Theft Task Force
• Institute for Scrap Recycling Industries (ISRI) Member
Scrap Recycling Industry Overview
• $100 billion industry in 2011
• ISRI is a D.C. based trade
association with 21 state and
local chapters, including the
Pacific Northwest Chapter
• Represents 1,700 private, forprofit companies
• Operates at more than 5,000
facilities in the United States,
30 countries worldwide
• We process, broker, and
consume scrap commodities
such as:
• metals
• paper
• electronics
• rubber
• plastics
• glass and textiles
Recycling is a sophisticated, capital-intensive industry and
the first link in the manufacturing supply chain that employs
more than 137,000 people with well-paying jobs.
Scrap Recyclers are NOT…
The Problem: Metals Theft
• Criminals steal metals such as copper wire and try to sell it
as legitimate scrap metal.
• Scrap material is fungible – without a unique identifying
marking, there is usually no way to prove the metal
offered for sale is the metal that was stolen.
• It is a crime of opportunity where criminals target readily
accessible material that is rarely marked and secured by
property owners.
Enforcement Difficulties:
• Enforcement of existing metals theft laws is sporadic at
best due to limited resources, low priority with
prosecutors, and conflicting laws that vary by jurisdiction.
• Criminals take advantage of the system and a myriad of
differing state and local laws.
• Numerous illogical legal remedies are being proposed that
are difficult to enforce.
Scrap Metal Recyclers
are Part of the Solution
Scrap Metal Recyclers assist law
enforcement on the front line with:
• Recordkeeping
• Monitoring for stolen goods
• Community outreach
• Photographs/Video
• Even fingerprinting (in some states)
But…
There lacks common-sense
coordination among the states which
encourages theft and leads to
enforcement problems.
Attorney General Van Hollen learns about
the scrap metal and recycling industry.
WMR’s Position
• We don’t want to purchase stolen material!
• We comply fully with the state and local requirements
currently operating in NV, UT, and CO.
• We work in cooperative efforts with other recyclers, law
enforcement officers and ISRI to mitigate scrap theft
problems.
• We help law enforcement agencies and victims.
• All employees assist in these efforts.
Other WMR Best Practices
• WMR’s staff provides visual inspections of inbound loads,
and brings greater scrutiny to suppliers (we get to know
them).
• WMR developed a “do not purchase” material list unless
supplied by originator of metal. Examples: utility branded
wire, beer kegs, rail road scrap, new production products,
bleachers, grocery carts and irrigation equipment - just to
name a few.
• Fraud Prevention and Suspect Material Identification
Training is required for all Managers, Greeters, Scale
Operators, Inspectors and Cashiers.
What REALLY works…and it’s proven.
Victims
Law
Enforcement
COOPERATION
Scrap Industry
Nationwide Theft Alert System
Alerting recyclers of a theft is the most
effective way to catch thieves.
Nationwide Success!!
• $1.3 million recovered in
stolen property.
• 242 reported
arrests/warrants issued.
• Nearly 17,000 registered
users.
• More than 6,000 law
enforcement users.
The recycling industry takes its role as part of the solution seriously
Law Enforcement Outreach
• Full Time Law Enforcement Liaison
(Gary Bush)
– Retired 35-year Veteran Law Enforcement
Officer
– Resource for both law enforcement and
recyclers
• NEW: Law Enforcement Training
Program
– Pilot Programs (VA & FL)
– TASK force comprised of all stakeholders
– Plans to go nationwide
WMR’s Success Story
1. Production material brought into WMR’s Englewood facility.
2. Recognized as questionable material by management after
transaction. (why would this category/type of supplier have
possession of this material?)
3. Received ISRI alert for material matching description of
purchased material – terrific timing and communication.
4. By utilizing WMR’s records -- scanned ID, photos of material,
and photo of seller at time of payment – helps identify
individual who brought in the stolen material.
5. Collaborative efforts on behalf of WMR, law enforcement
and victim leads to prosecution of thieves.
State of the Union: What
States Regulate Now
49 states with metals theft laws on
the books
• 49 with recordkeeping provisions
• 24 with reporting
• 28 with cash restrictions
• 28 with licensing or registration
requirements
Stakeholder collaboration to aid enforcement of existing laws is
the solution, not enactment of additional laws.
Federal Metals Theft Legislation
• S. 394 introduced in Senate & H.B.
867 in the House
– Sponsors say more needs to be done.
– Creates criminal penalties that federal
prosecutors or state AGs must enforce.
• Addresses recordkeeping, cash
restrictions & criminal penalties
– Most states already have laws on these
provisions.
– Potentially harms enforcement efforts by
creating differing standards.
• Could undermine state laws
– Preemption “exemption” is confusing at
best.
– Adds a confusing layer that will likely
result in legal challenges.
State Attorneys General Can Help
•Provide consistent guidance to state and local government that will ensure universal
interpretation of the law within the state.
 Avoids conflicting policy and loopholes for criminals to exploit.
 Eliminates cross border (state, local, fed) movement of materials to circumvent laws.
•Develop a coordinated list with fellow Attorney Generals of accepted restrictions on
controlled materials.
 Protects utilities, municipalities, railroads, and other property owners.
 Gives recyclers consistent guidance.
 Prevents “forum-shopping” by criminals for path of least resistance.
•Control access to sensitive data reported by recyclers by eliminating use of commercial forprofit third party vendors.
 Legitimate contractual obligations leave recyclers with no legal recourse if data is
breached or otherwise misused or misdirected by private vendors.
 Private personally-identifiable customer & commercial information is at risk.
 It is bad public policy to privatize collection & safekeeping of law enforcement
records.
Questions?
Contact Information
David Youngberg
General Manager
Western Metals Recycling
(303) 478-8612
[email protected]
Danielle Waterfield
Institute of Scrap Recycling Industries (ISRI)
1615 L Street, NW Suite 600
Washington, D.C. 20036
(202) 662-8516 – Ofc / (202) 714-3295 - Mobile
[email protected]
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