On August 10, 1991, a rusty tanker called the Mazal II docked at the industrial port of Ordu, in Turkey, and pumped twenty-two hundred tons of hazelnut oil into its hold. The ship then embarked on a meandering voyage through the Mediterranean and the North Sea. By September 21st, when the Mazal II reached Barletta, a port in Puglia, in southern Italy, its cargo had become, on the ship’s official documents, Greek olive oil. It slipped through customs, possibly with the connivance of an official, was piped into tanker trucks, and was delivered to the refinery of Riolio, an Italian olive-oil producer based in Barletta. There it was sold—in some instances blended with real olive oil—to Riolio customers...
The investigators also discovered where Ribatti’s adulterated oil had gone: to some of the largest producers of Italian olive oil, among them Nestlé, Unilever, Bertolli, and Oleifici Fasanesi, who sold it to consumers as olive oil, and collected about twelve million dollars in E.U. subsidies intended to support the olive-oil industry. (These companies claimed that they had been swindled by Ribatti, and prosecutors were unable to prove complicity on their part.)
In 1997 and 1998, olive oil was the most adulterated agricultural product in the European Union, prompting the E.U.’s anti-fraud office to establish an olive-oil task force. (“Profits were comparable to cocaine trafficking, with none of the risks,” one investigator told me.)...
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