Seattle, WA – Jeffrey Scott Zirkle, co-owner and former CEO of Total Reclaim, Washington state’s largest electronic waste recycler, was sentenced to 28 months in prison on April 23, 2019, after pleading guilty to conspiracy to commit wire fraud. The case, investigated by the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID), reveals a calculated scheme to illegally export hazardous electronic waste to Hong Kong, prioritizing profit over environmental and human health.
Total Reclaim positioned itself as a leader in responsible e-waste recycling, heavily involved in Washington’s “E-Cycle Washington” program – a state initiative designed to provide safe and free electronics disposal for consumers. The company secured contracts, including one with the City of Seattle, promising adherence to strict standards prohibiting the export of hazardous materials. Total Reclaim’s marketing materials and public pledges explicitly stated a commitment to environmental responsibility and a refusal to ship dangerous e-waste to developing nations. However, from 2008 to 2015, Zirkle and his partner, Craig Lorch, systematically violated those promises.
The fraudulent operation involved secretly shipping over 8.3 million pounds of mercury-containing flat screen monitors to Hong Kong. Instead of responsibly recycling the monitors domestically – a process that would have cost the company an estimated $2.6 million – Zirkle and Lorch exploited lax regulations in Hong Kong, where the monitors were dismantled by workers without adequate safety precautions. These workers faced significant health risks from mercury exposure, which can cause organ damage and mental impairment. To conceal the illegal exports, the pair falsified documents, misled customers, and stored the monitors at an off-site location before shipment.
Discovery and Cover-Up
The scheme was uncovered in 2014 by the Basel Action Network (BAN), a non-governmental organization dedicated to tracking the global flow of hazardous waste. BAN investigators placed tracking devices on discarded monitors deposited at Total Reclaim facilities. These trackers revealed the monitors were being shipped to Hong Kong and, upon investigation, confirmed the dangerous dismantling process. When confronted by BAN, Zirkle and Lorch attempted to cover their tracks by altering hundreds of shipping records, further demonstrating a deliberate intent to deceive.
Legal Ramifications and Sentencing
Zirkle and Lorch were charged with violating Title 18 U.S. Criminal Code, specifically 18 U.S.C. 371 (Conspiracy to Commit Offense or Fraud). The charge carries a maximum sentence of five years in prison and a $250,000 fine. Both men ultimately received 28-month prison sentences, along with three years of supervised release. In addition to imprisonment, they were ordered to pay $945,663 in restitution.
A Case Beyond Financial Fraud
Prosecutors emphasized the severity of the crime, arguing it extended beyond a simple financial fraud. “Lorch and Zirkle’s crime has all the hallmarks of a classic financial fraud,” stated the sentencing memorandum, “but this offense stands apart… because the greatest damage is not measured in dollars and cents. Rather, it lies in the health consequences that resulted from defendants’ calculated choice to prioritize their own economic well-being over the health of faceless foreign workers.” U.S. District Judge Richard A. Jones echoed this sentiment, noting the potential for long-term health impacts, including generations affected by mercury poisoning.
Key Facts
- Defendant: Jeffrey Scott Zirkle (and Craig Lorch)
- Company: Total Reclaim
- Location: Washington State
- Years of Operation: 2008 – 2015
- Amount of E-Waste Illegally Exported: 8.3 million pounds (flat screen monitors)
- Destination: Hong Kong
- Statute Violated: 18 U.S.C. 371 (Conspiracy to Commit Offense or Fraud)
- Penalty: 28 months imprisonment, 3 years supervised release, $945,663 restitution
- Investigating Agency: EPA-CID
Source: EPA ECHO Enforcement Case Database
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