Illinois AG Files Suit against Recycler over Misuse of Grant Money

The suit claims that the company received two grants from the state agency for close to $90,000. The grant money was earmarked to allow the company to expand its collection of electronic scrap. However, despite extensions, the company failed to comply with the terms and conditions of the grant agreement. These included the following:

Failing to satisfy the scope of work described in the grant agreements;

Failing to supply adequate financial and program records as required by the grant agreements;

Failing to supplement documentation or evidence that supported expenditures made;

Failing to provide information concerning the current financial accounting practices; and

Failing to submit accurate documentation concerning quarterly reports.

Due to the company failing to meet these requirements, earlier this year the state agency sent a certified letter to the company requesting a hearing to discuss the problem. However, the company failed to respond to the initial request, and the agency began proceedings to recover the full amount of the grant proceeds, a total of $88,192.

According to a news report, two years ago the company was sued by Riverdale, Ill., officials who claimed the company was storing thousands of mercury-laden fluorescent light bulbs and used electronic equipment in a warehouse without obtaining the federally required permit.