[ChildOfThe60s]

In the criminal complaint, prosecutors accused family members of unlawfully conspiring to commit grand theft and defrauding the California recycling program on a "chronic and ongoing basis" by seeking reimbursement for out-of-state containers and containers that had already been redeemed within California.

Huh? Pray tell what are out-of-state containers and containers that had already been redeemed within California?
If they've already been redeemed within California, why are they not in the possession of the state of CA?

[Fido969]

Pray tell what are out-of-state containers and containers that had already been redeemed within California?

The state only gives back deposits when those deposits were collected by the state in the first place. Deposits for out of state containers were never paid to California, and so aren't there to be paid back by California.

[EVO X]

If they've already been redeemed within California, why are they not in the possession of the state of CA?

Good question! I would hope California bureaucrats are asking the same question.

[PLMerite]

“If they’ve already been redeemed within California, why are they not in the possession of the state of CA?”

My guess would be that the State does not, itself, recycle the bottles, but sells them in bulk to someone who promises to do so. That may have been part of the scam.