Authorities uncover disturbing scheme by former CEO: 'It's really unfortunate'

The state of Wisconsin has spent over $4 million cleaning up massive amounts of electronic waste left behind by the former CEO of a recycling company.

As reported by Wisconsin Public Radio, Kevin Shibilski, the former CEO of 5R Processors, is currently serving a 33-month prison sentence for his involvement in a high-profile fraud case involving the improper disposal of electronic waste at facilities in Wisconsin and Tennessee.

According to a September 2020 indictment, Shibilski was accused of illegally storing and disposing of hazardous broken and crushed glass from cathode ray tubes and falsely certifying to clients that their electronic waste had been properly recycled. After pleading guilty to one count of failing to pay taxes to the IRS, Shibilski saw a number of other charges against him dropped.

Altogether, officials removed nearly 2.7 million pounds of harmful electronic waste from the sites in question. The operation has set taxpayers back over $4 million to pay for the cleanup costs.

Natasha Gwidt, waste and materials management field operations director for the Wisconsin Department of Natural Resources, criticized the actions of Shibilski and 5R Processors.

"It's really unfortunate that tax dollars did go to bailing out a corporation that didn't continue to be responsible for what they were supposed to be doing," Gwidt said, per WPR.

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Founded in 1988, the Wisconsin-based electronic and appliance recycling company processed various electronic waste, including computer monitors and televisions, in order to harvest cathode ray tubes and resell the valuable materials.

Poorly managed electronic waste has the potential to release toxic heavy metals and chemicals into the air, soil, and water. This can cause contamination, harming ecosystems and posing severe human health risks. According to Gwidt, the actions of Shibilski and other 5R Processors officials could have resulted in a danger to the nearby population.

"One of the sites up north was found to have [more than] 60 pounds of elemental mercury, which is an enormous amount of material that was not stored properly," added Gwidt. "Anyone could just walk into one of these facilities, break and enter or be in there utilizing them and not have a clue of the concerns."

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