March/April 2009
Scrapyards are reaching out to law enforcement agencies, utilities, and other stakeholders to prevent materials theft, capture thieves, and make it clear that the scrap industry is almost always the victim, not the perpetrator, of such crimes.
By Chelan David
It didn't take long for the word to get around. As the value of scrap materials grew to historical peaks over the past few years, criminals took notice. Devious thieves began to look at every piece of easily accessible metal—manhole covers, highway signs, telephone and electrical cable, downspouts, pipes from houses and farm irrigation systems, and even cemetery urns—as a potential source of income. Some targeted paper and other recyclable materials as well. As scrap commodity prices fell dramatically last fall, the reports of material theft began to decline, but they have not disappeared completely.
As the problem grew, scrapyards found themselves caught in a bind. The high prices meant they were purchasing, processing, and selling more material than ever. By the time a report of a theft came in, a scrapyard might have processed and sold the material long ago. Frustrated property owners began to pressure lawmakers to further regulate the purchase and sale of scrap while ignoring their own responsibilities to secure their property and prosecute thieves. The police, unfamiliar with the scrap industry, approached it with suspicion, looking for complicity in the crimes.
Most scrapyards responded to the wave of materials thefts by implementing new strategies to identify suspicious materials and record more data about each seller and transaction. (ReMA's "Recommended Practices and Procedures for Minimizing the Risks of Purchasing Stolen Materials" and related resources are on the ReMA Web site at www.isri.org/theft.) Some scrapyards have gone further, however, by reaching out to law enforcement agencies, utilities, and other stakeholders to work together to catch thieves and prevent future thefts. These collaborations have made a significant dent in the crime problem in their communities and have had the added benefit of increasing the knowledge, understanding, and appreciation of scrap companies.
A Model Collaboration
"It is our job to demonstrate to the public that recyclers can be a major part of the solution—and not just a problem—when dealing with materials theft on a local level," says Chip Koplin, co-owner of Macon Iron & Paper Stock Co. (Macon, Ga.). His company has done just that.
In summer 2006, several high-ranking members of the Macon Police Department visited Koplin to raise their concerns. Metals theft in the community had increased dramatically, and victims—from churches to rental property owners—were voicing their complaints to city officials. The officials were clear about the stakes involved, Koplin recalls: "If we could not come up with a solution, very harsh local legislation would be passed to deal with the matter."
In response, Koplin helped create the Macon-Middle Georgia Metal Theft Committee. Consisting of recyclers, law enforcement agencies, prosecutors, utilities, railroads, homebuilders, and other stakeholders, the alliance set a goal of reducing metals-theft crimes in middle Georgia. The group meets four to six times a year to share information and training and coordinate strategies. Recyclers report any suspicious activity, scrap, or individuals they've encountered and the group uses an e-mail alert system to circulate notices and lookouts from law enforcement regarding stolen metal cases.
Just two months after its inception in November 2006, the coalition had a measurable impact on the metals theft problem that had been plaguing the area. "The success in the city of Macon has been remarkable," Koplin says. "In November 2006 there were 84 incidents of metal theft. That number fell to 21 in March 2007 and reached a low of eight [incidents] in June 2008. The numbers have varied but remained low into the end of 2008."
The community was quick to embrace the committee's efforts, Koplin says. Law enforcement agencies, utilities, and other property owners in central Georgia appreciated the opportunity to share their concerns with local recyclers in one gathering. As word of the committee's success has spread, the group has grown to encompass more than 40 local organizations and a region that includes Bibb County, which contains the city of Macon, and seven adjacent counties.
In addition to reducing materials theft in these counties, the committee provides a platform for recyclers to tout the benefits the scrap industry brings to the community. "We have educated the community that recyclers are major industries in the region [that] provide hundreds of jobs and have a positive environmental impact," Koplin says. "We have also shown the criminals that recyclers and the entire community are serious about metal theft, that we all communicate, and that they will go to jail if arrested for metal theft."
Overcoming Misconceptions
Though the success of the committee in Georgia has been remarkable, its startup was a bit bumpy due to misconceptions on all sides the group had to overcome. First, Koplin says, law enforcement officials had the perception that recyclers are, in a word, shady. This impression comes as no surprise to Doug Kramer, president of Kramer Metals (Los Angeles), whose company has been working with law enforcement officials since the 1960s.
Initially, Kramer says, the police he attempted to collaborate with were adversarial. They perceived scrap metal dealers as thieves and did not want their involvement or cooperation in either legislation or regulation. Over time, he says, they came to realize that the majority of recyclers are legitimate companies that play by the rules. The turning point came in the 1980s, Kramer recalls, when ReMA's influence in California state government forced police to work with scrap recyclers. Within a matter of months, local law enforcement realized they had an ally and welcomed the industry's support and involvement.
Decades later, Kramer's work with local law enforcement continues unabated. "We are involved because we have always viewed ourselves as part of the solution and not as part of the problem," he says. "We also realize that we are victims of metal theft and that we have to be involved."
Those unfamiliar with the scrap industry also assume that stolen materials sold as scrap are easy to identify. "Many in law enforcement assumed that copper could be as easily identified as jewelry or electronics sold in a pawn shop," Koplin says. "Most in the community had no idea of the very large volume of material passing through a recycler's gate in a day." Bobby Livingston, president of Livingston Pecan & Metal (Lake Village, Ark.), has faced similar misperceptions. "When local or out-of-town law enforcement [officers] call and ask if you have bought any copper today, or even recently, it's obvious they don't have adequate knowledge of the scrap business."
Livingston recounts a recent incident in which his company invited police investigators to look at some tractor weights the yard had purchased that matched the description of ones a local farmer had reported stolen. While looking at the suspect material, the officers saw other, similar weights. They assumed they, too, must be stolen and wanted to confiscate them. Livingston had to explain to the investigators that it's not unusual for a farmer who's retiring or who has gone out of business to sell off old equipment in order to generate cash. "Not all [stolen] material is sold for scrap, and not all scrap material is stolen," he says.
Gary Bush, a former police officer who now serves as ReMA's national law enforcement liaison and director of materials theft prevention, points out that misconceptions exist on both sides: Law enforcement officials think the materials theft problem is the fault of recyclers and that they're "fences" for stolen property. On the other hand, a lot of recyclers believe that all the police want to do is shut them down and arrest them. "In my experience, the majority of scrap dealers out there are trying to do the right thing. And I know the majority of cops out there are simply trying to get their jobs done as quickly and as easily as possible—just like the rest of us," Bush says.
Getting Started
The first step toward overcoming those misconceptions, Bush says, is opening lines of communication. Give local law enforcement officials an opportunity to see what recyclers deal with on a day-to-day basis, and ask for an opportunity to see things from their point of view. Livingston suggests inviting police to your facility so they can witness firsthand how a scrapyard operates on a busy day. Exposing them to the sheer volume of materials processed will give them a clearer perspective of just how small a percentage of purchases are problematic, he says.
Once you've established a relationship, seek the police's assistance in training employees. Find out how they want investigations called in, dealt with, and followed up. Ask to receive immediate descriptions of stolen materials or suspects for which your buyers should be alert.
Equally important, Bush says, offer to train the police on metals identification and how to spot suspicious materials. "I know this works," he says.
"As a sheriff's detective, I learned about scrap operations by actually working in a scrapyard for several days. It gave me a much better understanding of the operation and what information and assistance I could, practically, expect from scrapyards."
Additional Obstacles
Thieves are a cunning and resourceful bunch. Not only do they find new items to steal and concoct novel strategies to steal them, they also take precautions to avoid arousing suspicion. Some travel great distances to unload their wares. Others divide the stolen materials into small portions and deliver them to several different scrapyards. "Not all thieves are totally stupid," Livingston points out. "If there are several scrap dealers within a certain radius, you never really know which way these people are going to go. It's not always the closest dealer who ends up with the material."
Another difficulty recyclers encounter when attempting to combat materials theft is property owners' failure to secure their recyclable materials. "Some are of the opinion that they should not have to secure it and that the recyclers and law enforcement are completely responsible," Koplin says. It's even more frustrating, he adds, when victims choose not to prosecute individuals arrested for a theft.
The lag time between when the material is stolen and when the owners report the theft also can be problematic. "More often than not, the stolen material we see has been dormant or not in operation for a period of time, and the owner hasn't had the need to use or miss his property," Livingston says. "Then, by the time he does, it could have been days, weeks, or months—and the material could have been processed by the thieves, which makes it even more difficult to identify."
Tackling these challenges can require collaboration with stakeholders beyond law enforcement, such as public officials and other community representatives. Enlisting the aid of other recyclers and community members is critical, Koplin says. Property owners and utilities must be on board to ensure that materials are properly secured. Prosecutors must be willing to prosecute thieves that commit materials theft crimes. Participation of the local media is critical in getting the word out that all involved are serious about reducing metal theft. "Once all involved see that [everyone has] the same goal—reducing material theft—it is a win-win situation," Koplin says. Or as Bush puts it, "Everyone involved—recyclers, law enforcement, and victims—needs to communicate with a dual goal of catching criminals and improving methods for preventing the crime in the first place."
Kramer agrees. "What works is when property owners protect their property, police enforce the good laws that are already on the books, scrap dealers obey the law, and all three create a working and constant dialogue." What doesn't work, he adds, are measures such as restricting the use of cash or requiring the holding of a check for a period of time. Theft will continue regardless of most such restrictions, he says.
A Worthwhile Commitment
Collaborating with law enforcement and other stakeholders requires the commitment of resources on a variety of levels. Livingston has found that incorporating anti-theft efforts into normal, day-to-day business transactions and staying in touch with local authorities has had only a minimal impact on staff time. Overall, he believes the commitment of resources is well worth it. "Anything to stop or slow the theft of materials, other than 'tag and hold,' is worth it to all legitimate scrap dealers," he says. "None of us wants to be associated with the stigma that all scrap dealers are buyers of stolen material or scrap. It just happens to be one of the unfortunate hazards of our business."
Koplin feels the same way. Though the commitment of resources is fairly substantial during the first few months of organizing a committee, he says, the primary investment is merely time. And the consequences of failing to take a proactive stance toward the problem of materials theft could be disastrous. "Our company definitely feels that this commitment is worth the investment, as onerous materials theft legislation could cause great harm to our company and the recycling industry as a whole," he says.
Chelan David is a writer based in Seattle.
Scrapyards are reaching out to law enforcement agencies, utilities, and other stakeholders to prevent materials theft, capture thieves, and make it clear that the scrap industry is almost always the victim, not the perpetrator, of such crimes.