The joint investigative team went undercover to several metal yards in the Lower Mainland and attempted to sell scrap designed to look suspicious, but in reality supplied by Telus.
Telus is one of the biggest victims of the trade in "hot metal" and frequently sees everything from copper phone wires to aluminium phone booths stolen for illegal sale.
CAC Enterprises Group in Maple Ridge was caught buying a clearly marked Telus phone booth for $15, in violation of scrap metal bylaws requiring delivery in a company vehicle by a seller with company identification and authorization.
Undercover Vancouver Sun reporter Mike Hager was not even asked for a basic driver's licence or government-issued photo ID — which are required from all sellers in case the scrap turns out to be stolen.
When shown a tape of the incident, CAC manager Xiao Yang said he was shocked by what he saw and admitted his yard should never have bought the booth.
"I'm certainly very surprised then disappointed, and of course, very embarrassed," he said. "There's no excuse. It's something that we missed and we should change."
CAC Enterprises Group has since brought staff up-to-speed on the rules and ordered a new sign, warning potential scrap sellers that tough new rules are now in place.
In another incident, Ever Recycling in Surrey was caught paying $148 for burned wire — cables with all casing and identifying marks burned off — despite the fact that municipal scrap metal bylaws specifically prohibit this.
When confronted about the purchase, Ever's manager said that Telus had told him he could buy anything worth less than $500. A Telus inspector disputed this claim.
Contacted later for clarification, Ever Recycling continue to insist they have done nothing wrong.
Under new regulations that will come into effect July 23, the province's 60 to 70 scrap metal dealers will be forced to file daily reports to police, who will be able to compare the information with reports of metal theft.
Sellers with more than $50 in scrap will be paid by cheque, not cash, to reduce walk-in traffic by individuals who want quick cash.
Sellers will also be required to give their personal identity information to the dealers and police will be able to obtain that information with a court order if they believe the metal was illegally obtained.
Seven provincial inspectors will enforce the new legislation.