"Masquerading as seemingly legitimate recyclers, they are able to evade any form of background vetting and licensure simply because no such requirements exist for those engaged in the business they purportedly conduct," the report said.

The commission followed a trail of records and interviewed witnesses tied to the state's recycling industry, finding "dirt brokers" and other players with organized crime ties exploiting those regulatory loopholes and a lack of oversight.

Investigators from the commission say they watched a mob-connected hauler dump toxic fill from a development site in the Bronx onto a Hurricane Sandy-damaged beach along the Raritan Bay, under the noses of neighbors.

They claim they found dirt brokers -- middlemen who connect construction sites looking to get rid of large quantities of soil and debris to recyclers and developers who can reuse the material -- and other players with ties to the Lucchese and Bonanno organized crime families.