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Gutter Oil Scam Busted in China
August 31, 2012 from LinkAsia via CCTV News
Twenty people have stood trial this month after their used oil operation was discovered by the authorities. As CCTV News reports, they were selling cooking oil recycled from oil dumped into the gutters behind restaurants. 
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Yul Kwon:
Over in China, the latest controversy that's hit the news isn't about smartphones, it's something much more low-tech - "gutter oil." The name pretty much says it all. It's cooking oil that's been recycled from oil dumped into the gutter behind restaurants. It's bad for your health, and it's illegal. Authorities in China have placed 20 people on trial this past month for manufacturing and selling gutter oil. CCTV has more on the story.

Reporter:
The last group of eleven suspected of selling the recycled cooking oil will stand trial from Tuesday to Wednesday. The first group of seven suspects was put on trial in Ningbo on August the 22nd. They are accused of processing gutter oil into cooking oil. On August the 24th, another two accused stood trial for promoting sales of gutter oil. The entire chain was cracked in August 2011. Local police uncovered a small gutter oil processing workshop in Ningbo's Ninghai County and traced the origin to a major site for recycling the oil in Shandong province. The accused made up 99 million yuan in illegal income from December 2007 until they were seized by the police. While gutter oil refers to the recycled kitchen waste oil dredged from gutters behind restaurants.

Yul Kwon:
It turns out that people have been eating something even more disgusting than gutter oil. A few months ago, Chinese authorities discovered that a gang in Eastern China was making cooking oil out of rotten animal parts. It seems they'd been in business since 2005.