SMITHTOWN, N.Y. (CBSNewYork) — Three men have been charged in a recycle scheme that officials said scammed a Long Island town out of thousands of dollars in revenue.

Two workers at Jody Enterprises Inc. — a garbage carting firm — are accused of diverting cardboard and paper waste destined for the Town of Smithtown recycling plant and instead selling it for cash payments to DeMatteo Salvage in West Babylon, prosecutors said.

WCBS 880’s Sophia Hall reports

William Stegemann, 55, of Lindenhurst, the company’s manager of operations, and field supervisor Michael D’Alessandro, 43, of East Patchogue, were arrested Wednesday.

Joseph DeMatteo, 72, the owner and operator of Dematteo Salvage, has also been arrested.

“We have evidence these suspects have been profiting at the expense of Smithtown taxpayers by depriving the town of recycling revenue for at least the past two years,” Suffolk County District Attorney Thomas Spota said.

The suspects pocketed more than $200,000 in the scheme, Spota said.

The three men are charged with grand larceny.

Spota said more arrests are possible.

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