Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5

  • By submitting this article to a friend we reserve the right to contact them regarding AMM subscriptions. Please ensure you have their consent before giving us their details.

Calif. dealer agrees to $500,000 settlement

Apr 09, 2014 | 03:38 PM |

Tags  Circosta Iron & Metal, California anti-metal theft laws, scrap, metal theft, George Gascón, David Millstein, Sims Metal Management, Saranya Kapur

NEW YORK — Circosta Iron & Metal Co. has reached a settlement with the district attorney in San Francisco that will see the scrap recycler pay $500,000 in civil penalties to resolve an alleged violation of California’s anti-metal theft laws.

The San Francisco-based company was accused of such offenses as "not holding payments for the required three days or buying scrap metal without requiring identification or other information from the sellers," according to a complaint filed by San Francisco District Attorney George Gascón.

Under state law, scrap metal dealers are required to photograph, fingerprint and identify individuals selling scrap metal.

"We can’t rely on enforcement alone to effectively stop metal thieves. We also have to make sure they can’t find an avenue to sell their stolen goods, and that requires recycling companies to do their part to deter metal theft by following the law," Gascón said in a statement.

The company also will be bound by a permanent injunction that ensures good business practices and prohibits future violations of the law.

Circosta was accused of "failing to keep proper records and adhere to required procedures in the handling of some metal transactions," David Millstein, the attorney representing Circosta, told AMM in an e-mail.

"It was not claimed (Circosta) or any employee purchased stolen materials," he said. "Circosta has cooperated with law enforcement in the past to prevent metal theft and will continue to do so. ... Although Circosta did not admit wrongdoing in this suit, it was appropriate to settle the matter and avoid protracted litigation."

New York-based Sims Metal Management Ltd. last year agreed to pay a $4.1-million settlement with district attorneys in San Francisco and Contra Costa, Calif., over alleged violations of the state’s anti-theft laws (, Aug. 2).

Latest Pricing Trends Year Over Year


How will US hot-rolled coil prices fare over the summer?

Rise sharply
Rise modestly
Stay largely flat
Fall modestly
Fall sharply

View previous results