INVESTIGATION INTO DK RECYCLING FOR VIOLATIONS OF CALIFORNIA BUSINESS AND PROFESSIONS CODE SECTION 21608.5

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Oroville, CA
The Butte County Sheriff’s Office (BCSO) has been actively investigating DK Recycling, a locally owned business, for violations of California Business and Professions (B&P) Code Section 21608.5. B&P 21608.5 regulates the lawful recycling of nonferrous metals, including copper. This investigation began in response to multiple reports of significant copper wire thefts from companies such as AT&T and PG&E, affecting both urban and rural areas of Butte County.
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Background:
Between January 2025 and September 2025, approximately 25 cases of copper wire theft were reported to BCSO. These incidents involved individuals damaging AT&T infrastructure to obtain copper wire. The stolen copper wire is commonly sold to recycling businesses for cash.
Key facts about the thefts:
1. AT&T copper wiring is typically encased in a protective plastic coating.
2. Individuals involved in copper wire theft often attempt to burn off the plastic coating to expose the copper, which presents a significant fire hazard.
3. A common method used by these individuals includes cutting down telephone poles to access and steal the copper wire.
4. In one notable incident, a deputy on patrol observed smoke from a fire. Upon response, the deputy located individuals actively attempting to burn the plastic coating off stolen copper. This incident took place in August 2025, in Palermo, during the peak of fire season.
5. These thefts have led to disruptions of essential services, including telephone communications for local residents.
BCSO conducted thorough investigations leading to the arrests of several individuals involved. During these investigations, BCSO gathered evidence suggesting that DK Recycling, located at 434 Ophir Road, Space C, Oroville, was purchasing stolen copper wire.
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Key Requirements of California Business and Professions Code Section 21608.5:
California B&P Code Section 21608.5 was designed to prevent the recycling of stolen nonferrous metals, including copper. This statute requires junk dealers and recyclers to:
1. Obtain a valid government-issued photo identification from sellers.
2. Take a clear photograph or video of the nonferrous material and the seller.
3. Secure the seller’s thumbprint.
4. Maintain transaction records for a minimum of two years.
5. Delay cash payments for three business days after the date of sale unless other approved payment methods are used.
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Undercover Operations:
In collaboration with AT&T and PG&E, BCSO obtained copper materials consistent with commonly stolen copper to assist with conducting undercover operations. The objective was to determine if local businesses were complying with California B&P Code Section 21608.5
During the investigation, a Butte County Sheriff’s Office detective, acting undercover, conducted three undercover sales of copper material at DK Recycling.
During the first undercover sale Jacob Klein, the owner of DK Recycling, failed to comply with legal requirements: the detective provided a fabricated name and identification number and was immediately given cash, in violation of the law.
During the second undercover sale, the detective sold copper wire, and spooled copper wire. Jacob Klein again failed to comply with legal requirements: the detective provided a fabricated name and identification number and was immediately given cash, in violation of the law.
During the third undercover sale, the detective sold communication wire and large copper bus bars. Jacob Klein again failed to comply with legal requirements: the detective provided a fabricated name and identification number and was immediately given cash, in violation of the law.
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Search Warrant Execution:
Based on the results of the undercover operations, BCSO obtained a search warrant for DK Recycling. The warrant allowed BCSO to enlist expert assistance from PG&E and AT&T to identify any property or materials belonging to their respective businesses.
On October 22, 2025, BCSO executed the search warrant. During the search, additional evidence related to the investigation was discovered. BCSO is currently processing this evidence and conducting further investigation.
During the execution of the search warrant, Jacob Klein was placed under arrest for three violations of California Business and Professions Code Section 21608.5. He was subsequently booked into the Butte County Jail.
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Ongoing Investigation:
The Butte County Sheriff’s Office typically does not disclose information regarding detectives working in an undercover capacity. However, given the magnitude of the damages, extended loss of utility services, and the complexity of this investigation, we believe it is important to inform the public about the extensive thefts, the resulting damage, and the relevant recycling laws.
These laws are designed to prevent individuals from stealing copper wire, as they impose a specific legal process that must be followed in order to sell it. This framework helps deter theft. As documented, this remains an ongoing investigation, and the Butte County Sheriff’s Office has been, and will continue to be, vigilant in investigating recycling businesses that are not adhering to the law.
For the safety of our undercover personnel, we cannot provide additional details about the businesses where our undercover personnel might have been previously deployed or may be deployed in the future. However, we want to assure the public that this is an active investigation, and any recycling business found accepting stolen property will be thoroughly investigated to ensure full compliance with the law.
Anyone with additional information is encouraged to contact the Butte County Sheriff’s Office.