Redeem+Restart+Recycle

After overcoming his own challenges, John Shegerian is doing his part to give back, both to our planet and to his employees.

BY SCOTT S. SMITH

Millions of out-of-fashion cell phones, old computers, outdated televisions and other obsolete electronic products are tossed out in the US every year. These items are called e-waste, and they contain hazardous substances that shouldn’t be dumped into landfi lls. However, if properly handled, this material can be broken down and reused— which is exactly what John Shegerian’s Fresno, CA-based company, Electronic Recyclers International, set out to do. And it does it well: This year, ERI is expecting to double its revenues to $60 million, with operating profi ts around $6 million—and it’s the state’s largest recycler of high-tech junk.

ERI hopes to be a role model in the industry. None of its e-waste is exported for processing, and this year the company will install a $4 million machine—the biggest of its kind in the world— to shred large electronics. Its other technology includes a machine that uses sensors to sort materials and glass-shredders that are sealed to contain lead dust. Once everything is recycled, it is sold to companies that can reuse the commodities.

But Shegerian, 45, didn’t have an easy climb to the top of this trash heap. He was oft en tripped up by his own bad behavior, which he believes was a reaction to a painful childhood. His father was abusive to his mother, who subsequently threw him out of the house. Shegerian was 5. The family went on welfare shortly thereafter.

Motivated to work hard and get out of poverty, Shegerian mowed lawns, shoveled snow, washed cars and mucked stalls at horse stables from ages 10 to 14. Th e latter led him to drive in harness races, setting a world record at age 17.

He raised money from all of his gigs to buy and manage 100 racehorses. This endeavor helped him reconnect with his father (who assisted him fi nancially in buying the horses) as well as raise money for college. “My dad was a self-made success and taught me a lot, but he also made a lot of mistakes, and I’ve learned from those,” Shegerian says.

After graduating from New York University, Shegerian married his wife, Tammy. He went on to law school in Los Angeles, only to drop out after a couple of years. It was clear to Shegerian that he wanted to be a businessman, so he pursued that full force instead.

In the wake of the 1992 LA riots, Shegerian worked with the legendary Father Gregory Boyle to start Homeboy Tortillas (later Homeboy Industries), which helped create thousands of jobs for ex-gang members and at-risk youth. “Nothing stops a bullet faster than a job,” he says. This was just the beginning of Shegerian’s mission to employ those in trouble.

However, that same year Shegerian faced some personal obstacles. His marriage was in trouble due to Shegerian’s addictions and compulsions. He and Tammy divorced, then remarried when he felt he had his problems under control. They moved to Fresno and opened a brewery in 1996, and Shegerian hired Mandingo Cain, a former drug dealer who had been to jail 11 times, to wash dishes; it was the start of a long business relationship that the two men still share.

Another opportunity came knocking in 1999, in the form of offering student loans over the internet. Shegerian cofounded Financialaid.com and owned a third of it when the company was sold for more than $20 million in the fall of 2004. But that same year, he and Tammy divorced again, and Shegerian checked himself into a rehab clinic for 35 days to gain an understanding of why he was so compulsive. “I found out that I had been a classic addict most of my adult life and could get addicted to anything from food to diet soda,” he says. He found himself trying to numb the emotional pain from childhood with anything that would give instant pleasure.

As his departure from rehab drew near, Shegerian feared he was not ready. “I realized I was not prepared to go back into the real world, where so many temptations exist,” he says. “Rehab was just the fi rst step in combating the grips of addiction.”

Shegerian drew from his experience, creating a popular website to fi gure out what he—and people like him—needed: “A site that would democratize the process of fi nding information on all addictions, to give hope to addicts and their loved ones.” So Shegerian founded Addicted.com, which remains the most popular social networking site of its kind.

In October 2005, the Shegerians married a third time. “After Tammy realized that I really was recovered, we moved forward together and never looked back,” he says. They were soon trying to rescue a struggling electronic waste recycler in San Diego. Shegerian raised $12.5 million from friends and investors to buy it, renaming the company Electronic Recyclers International and moving it to Fresno. He currently doesn’t earn a salary, but owns 20% of the shares, while Tammy is the COO—and Cain is his right-hand man. “We really understand each other; we’re business soul mates,” he says.

In a world so obsessed with electronics and technology, the need for a company like ERI is stronger than ever. “Environmentally speaking, we’re at a crossroads, and it’s our last chance to get it right,” Shegerian says about the danger of e-waste. “We’re true believers in walking the talk, so we run a completely green operation. Our factory lights are energy-saving, the forklift s are electric, the furniture is second-hand, and our salespeople drive hybrid cars.” Even his business card is consistent with his mission: It’s half the normal size, saving paper, ink and energy.

Shegerian believes that much of his success in responding to the growing mountain of toxic gadgets comes from recycling lives—giving ex-gang members, ex-prisoners and former substance abusers another opportunity. These employees make up a third of ERI’s current workforce, and their pasts give them extra motivation to do well. What’s more, Shegerian says that turnover among this group is half that of other workers.

The way Shegerian sees it, he’s been given the opportunity to provide the planet, his employees and himself another chance to get things right—and he’s succeeding.

TACKLING THE TOXINS

Use these recycling tips from the Natural Resources Defense Council to keep used electronics out of landfills.

FIND THE E-WASTE RECYCLING ORGANIZATIONS IN YOUR TOWN.
E-cycling Central (www.eiae.org) searches for the most convenient donation program.

SEND YOUR USED GADGETS BACK TO THE MANUFACTURER.
Check the company’s website to find out its recycling program since policies may vary.

FIND A NEARBY RETAILER THAT ACCEPTS OLD ELECTRONICS.
Companies such as Staples, Office Depot and Best Buy all have individual recycling programs.