Truck Driver Allegedly Defrauds Scrap Metal Recycler

This case involves a trucking company that was hired to deliver scrap metal on behalf of a large appliance manufacturer to a third-party recycling company. One of the truckers working for the logistics company instead stole these recyclables and re-sold the scrap metal to a different company. This company failed to verify where the trucker had obtained the scrap metal, and did not confirm that the scrap had been obtained legally. The driver went on to defraud the company supplying the scrap metal for an extended period of time, netting tens of thousands of dollars in the process. It was claimed that the receiving facility was at fault for failing to investigate or verify the source of the scrap that was being sold, and that they should have refused to do business with the driver.

Question(s) For Expert Witness

1. Are there specific screening measures that must be taken to ensure that any recyclables are obtained legally?

2. Have you ever encountered a delivery of recyclables that was suspicious? If so, what steps are taken to verify the origin of these recyclables to ensure good standing?

Expert Witness Response E-008927

First off, it's imperative that a proper bill of lading is provided at time of delivery and a relationship with the supplier must exist before a purchase of this magnitude can be authorized. If an unknown trucker shows up with a large amount of recyclable material, that is an immediate red flag. It is very hard to believe that this didn't raise the suspicions of the company accepting the supplies and I would question their interests. Given my tenure in this industry (and the position that I take in an instance like the one described), it is clear that there were deviations from standard industry practice here.