Feds put lid on bogus olive oil

Federal agents who raided a Clifton warehouse Thursday weren't looking for the typical heroin mill or pile of laundered money.

The agents seized about 22,700 gallons of oil after the Food and Drug Administration found that the Hermes and San Giovanni brands had been substituting soybean oil for some of their extra virgin and pomace olive oil.

Olive oil is approximately five or six times more expensive than soybean oil, according to the FDA, which estimated the profit of the swap at $105,600.

"We will not permit New Jersey consumers to be defrauded," said U.S. Attorney Christopher J. Christie. "We should all have confidence that the products we purchase are what they purport to be."

The labels on the 3-liter tins of oil in 4,855 cases represented that each contained extra virgin olive oil or pomace olive oil, when in fact the tins contained quantities of soybean oil or a similar substance, federal authorities said.

In addition, the Hermes label states that its oil was imported from Greece, while a federal seizure warrant states it was packed in Italy, they said. The oil will remain at the warehouse, belonging to Quivican Trucking Corp. on River Road in Clifton, while the U.S. Attorney's Office seeks a court order to have it destroyed.

"We're working with the company to rectify the situation," said FDA spokeswoman Cathy McDermott. "The FDA and Department of Justice will be working with the company to bring it to closure." Prior to the seizure by U.S. marshals, the oil had been held at the warehouse under a state-ordered embargo that was requested by the FDA, McDermott said.

According to several online stores, a three-liter tin of Hermes extra virgin olive oil sells for about $17. Hermes is owned and distributed by Krinos Foods, which is headquartered in Long Island City, N.Y. San Giovanni olive oil is distributed by DMK Marketing, LLC, based in East Moriches, N.Y.

It's not the first time Krinos Foods has been accused of adulterating its olive oil. In 1997, a similar seizure warrant was filed in New York for more than 1,700 cases of Hermes olive oil that had been mislabeled. The president of Krinos did not return calls for comment Thursday. McDermott said the FDA learned about Krinos' latest apparent attempt to substitute another oil in its Hermes brand from a media report that exposed the alleged fraud.

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Importer Pleads Guilty In Tainted Cheese Plot
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Published: June 28, 1988
LEAD: A millionaire businessman pleaded guilty in Federal court today to charges that he illegally imported Romanian cheese contaminated with a cancer-causing pesticide.

A millionaire businessman pleaded guilty in Federal court today to charges that he illegally imported Romanian cheese contaminated with a cancer-causing pesticide.

In a plea agreement, John Moscahlaidis, 64 years old, admitted conspiring to import tainted cheese and disguising imported cow's milk cheese, which is strictly limited by quota, as less-regulated sheep's milk cheese.

Mr. Moscahlaidis controls Krinos Foods Inc., Big Alpha Foods Inc. and Doric Foods Inc. out of Long Island City, Queens, said Richard Mercier, head of the United States Customs Service's investigative division in Newark.

Lawrence Goldman, Mr. Moscahlaidis's lawyer, said the cheese posed no health hazard. It contained the carcinogen benzenehexachloride, or BHC.

Mr. Moscahlaidis agreed to pay $3.25 million in criminal fines, civil penalties and customs duties to the Government. He could face a 10-year prison term at his sentencing Sept. 9 before Judge Alfred J. Lechner Jr. in Federal District Court.

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Importer Pleads Guilty In Tainted Cheese Plot
Printer-Friendly
Save Article
AP
Published: June 28, 1988
LEAD: A millionaire businessman pleaded guilty in Federal court today to charges that he illegally imported Romanian cheese contaminated with a cancer-causing pesticide.

A millionaire businessman pleaded guilty in Federal court today to charges that he illegally imported Romanian cheese contaminated with a cancer-causing pesticide.

In a plea agreement, John Moscahlaidis, 64 years old, admitted conspiring to import tainted cheese and disguising imported cow's milk cheese, which is strictly limited by quota, as less-regulated sheep's milk cheese.

Mr. Moscahlaidis controls Krinos Foods Inc., Big Alpha Foods Inc. and Doric Foods Inc. out of Long Island City, Queens, said Richard Mercier, head of the United States Customs Service's investigative division in Newark.

Lawrence Goldman, Mr. Moscahlaidis's lawyer, said the cheese posed no health hazard. It contained the carcinogen benzenehexachloride, or BHC.

Mr. Moscahlaidis agreed to pay $3.25 million in criminal fines, civil penalties and customs duties to the Government. He could face a 10-year prison term at his sentencing Sept. 9 before Judge Alfred J. Lechner Jr. in Federal District Court.

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