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Law and Utilities
Stopping stainless steel from becoming stainless steal
By Stephanie Tavares / Staff Writer

Recyclers unload at AAEQ Manufacturers and Recyclers, located in North Las Vegas.
RICHARD BRIAN / STAFF PHOTOGRAPHER

Metal theft is a growing problem in the Las Vegas Valley and across the nation.

Builders and utilities — even homeowner associations — make easy targets.

They aren't the only ones trying to manage the issue. The guys on the other side, the scrap metal recyclers, are fighting back hard.

Las Vegas scrap metal recycling company AAEQ has for years followed industry guidelines meant to keep thieves at bay.

They require identification and license plate numbers from all scrap sellers and are trained to spot suspicious scrap.

And they work closely with police when there's a reported theft.

Next year they're going about 10 steps further.

The 58-year-old company just purchased a $50,000 automated scrap cataloging system. The units spit out a bar-coded ticket that sellers can redeem at an on-site ATM. But the real punch is the new security measures.

Under the new system all sellers and their hauls, will be photographed and the time and date of the sale will be recorded. Their IDs will be scanned into a computer system that will also record their fingerprints.

It is designed to be the ultimate theft prevention system.

"It will save me a tremendous amount in labor, but it also makes it easy to document," AAEQ President Scott Stolberg said. "Lots of different manufacturers are making these now, and we did our research. The one we chose is top of the line."

Legitimate sellers need not fear identity theft because the system is packed with strong security system, Stolberg said.

The equipment has been around for years with just the ATM, but Stolberg decided to install one after he saw the theft-prevention possibilities.

"We get less and less (stolen scrap) because our reputation is out there," Stolberg said. "They know we talk to the police. But we probably get at least one a week ... We might make a little less money by not dealing with them, but it's best for us in the long run."

Stolberg isn't alone. He is tapped into a nationwide network of scrap recyclers, all members of the Institute for Scrap Recycling Industries equally bent on stopping copper theft.

The institute is a major player in the debate over regulation of the industry.

It launched a campaign among members to follow a list of best practices to give scrap recyclers better tools to fight thieves in their communities. And although it has come around to the idea of regulation, it wants to ensure regulations are workable.

Some politicians have suggested a 60-day waiting period before recyclers can resell scrap. With the constantly fluctuating market, that could bankrupt a recycler who buys before prices drop. But the institute supports measures to prevent theft and discourage thieves from coming to its members' stores.

"I'm a taxpayer. I'm paying my share of putting light poles back up," Stolberg said. "I'd rather see the money go into schools or to get help for the mentally ill. I think reasonable regulations would help with that."

Among the measures the institute has taken is an online scrap theft alert system.

Often, scrap thieves turned away from local recyclers will sell the goods on the black market to haulers willing to drive a few hours to recyclers in Los Angeles.

If the Los Angeles recyclers know to be on the alert for a specific stolen piece of scrap — a marked piece of metal or a statue — they can alert authorities if they see it come in.

It's almost impossible to recover a stolen piece of scrap if it's not easily identifiable. And totally impossible if the recyclers don't know something is missing.

That's where many victimized businesses fall down, according to Dave Mitchell, president of the West Coast chapter of the institute. His industry is routinely frustrated by angry theft victims who expect miracles out of scrap recyclers.

"We in the industry have absolutely no reason whatsoever to buy stolen material. It's not what we want to do," Mitchell said. "We want to cooperate with businesses and law enforcement. But the cooperation and communication needs to be two-way. We're more than willing to do our fair share and help out to curb this problem, but that communication needs to come."

That starts with marking metal in storage — a simple spray of colored paint across the back will do — and notifying local recyclers when something has been stolen.

"Copper pipe looks like copper pipe and stainless steel looks like stainless steel," Mitchell said. "It needs identifying marks, otherwise our hands are tied trying to help law enforcement."

For more information on scrap theft prevention in the recycling industry, visit the institute's Web site at www.isri.org/theft.

Stephanie Tavares covers utilities and law for In Business Las Vegas and its sister publication the Las Vegas Sun. She can be reached at 259-4059 or tavares@lasvegassun.com.

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