When it comes to food fraud, fake Olive Oil is the #1 offender in the game. Canola oil (9.5 cents per oz.) and palm (40 cents per oz.) are routinely passed off as Extra Virgin Italian olive oil ($1.47 per oz.). Those are markups of 1547% and 367% respectively – – a hefty chunk of change, if you can get it. In the old days, fraudsters would start with olive oil that wasn’t Extra Virgin, dilute it with canola and/or palm, and then sell it as Extra Virgin Italian Olive Oil. After a while, the fraudsters suffered pangs of guilt and got rid of the olive oil component altogether. Those pangs of guilt they felt? Leaving some money on the table. All of this happens because it’s impossible to differentiate olive oil from its cheaper cousins without DNA testing. Relying on your taste buds? Like we used to say in South Philly: fuggedaboutit.
Not being extra virgin is just one layer of this scam. The other is that the olives and/or olive oil may not even originate from Italy. Much of it comes from Iraq and/or Iran. In most cases, the producer will buy olives from the Middle East, press them into oil in Italy and sell it as Extra Virgin Italian Olive Oil. Other times, they skip the pressing step and just buy olive oil in Iraq and blend it in Italy into 100% Extra Virgin Italian Olive Oil.
Every once in a great while, someone will get caught, “consumer advocates” get upset, and the olive oil industry promises to clean up its act. Inevitably, the dust settles, and the olive oil scammer in question goes right back into business. This game of cat-and-mouse has gone on for many years.
Once in an even greater while, we’ll get character right out of the Godfather: Antonio Fasolino. Antonio had a terrific idea to import Italian Extra Virgin Premium olive oil and sell it under delivery contracts he had with Costco and T.J. Maxx. He convinced investors to put up $3.4 million in seed money and promised that everyone involved would profit. Antonio was only missing two things for his plan to work: The olive oil and the delivery contracts. Being a creative guy, Antonio spent the money on himself, got caught, and was sentenced to 37 months in federal prison. But remember, Antonio’s a creative guy who doesn’t waste time. During his last “stretch in The Pen,” for mail fraud, Antonio spent his time working with another inmate to hatch a scam that could work as soon as they both got out. Who says entrepreneurship is dead in America?
The Food Lawyers® Analysis: The reason olive oil is a pool for corruption is because it’s not a sexy subject for legislators to go after. Politicians like to campaign on high profile causes like climate change and income inequality. “Elect me and I promise we’ll have authentic olive oil,” – – I don’t think so.
If you want to be sure of getting 100% olive oil, do what I do – – buy a brand that is 100% made in California from California grown olives. It will say that on the label. You can’t go wrong. If you want to pour it into a container labeled 100% Extra Virgin Italian Olive Oil for your friends to see – – that’s up to you. I guarantee no one will ever figure out the truth.
Oh, and our friend Antonio Fasolino? At his sentencing hearing he promised to pay back all of the money he stole with interest. I wonder if he’s planning to pay it back in 100% Extra Virgin Italian olive oil?