Owner of burning recycling facility tied to COVID-era fraud scheme, records say

HOUSTON, Texas (KTRK) -- Residents watched a massive fire burn for hours Tuesday at a metal recycling facility, raising concerns about air quality as thick black smoke billowed over the neighborhood.

Victoria Delafuente said she woke from an afternoon nap around 3 p.m. to find the fire burning just outside her window.

"It's very concerning for us in this neighborhood," she said. "I'm just praying everything is under control."

Firefighters attacked the blaze from above as residents gathered to watch. While north winds appeared to help keep smoke away from their homes, some neighbors remained worried about potential health impacts.

"My concern is my kids. My kid has asthma," Tanya Gonzalez said. "All this black smoke. Thankfully, it's up in the air."

State records show Dallas-based Mammoth Metal Recycling has been operating on Kellogg in southeast Houston since 2023. Federal court records show the company was later named in a $53 million fraud case tied to the Paycheck Protection Program, a COVID-era relief program. The company's owner was charged along with 13 others, pleaded guilty, and is scheduled to be sentenced next month.

Harris County records also show the company owes more than $100,000 in delinquent taxes. Attorneys and the company did not respond to requests for comment.

For neighbors, however, those issues took a back seat to the fire still burning nearby.

"I'm just worried because there's grass and trees everywhere," Juan Bolanos said

As night fell, the orange glow of flames remained visible from the neighborhood.

"It's still pretty big, and the fact that you can still see the flames. That's scary," Gonzalez said.